It sounds like a fantastic idea to upsize your home, especially when your business is going well. But you want to exercise caution before making a move. There are many things you want to consider. Here are some tips from
Revitalize Realty to make it a success.
Tip #1: Know Your Finances
Of course, if you can be pre-approved for a mortgage, it's incredibly beneficial because you know your price range and can plan accordingly. Money.com suggests shopping around for your mortgage from
at least three lenders. But there's also the cost of moving itself, area-specific costs like higher property taxes, and the logistics of selling your current home. For starters, check into how much it will cost for the actual move so you can budget accordingly; finding a reputable nearby moving company is easy with
Angi.
Tip #2: Know the Market
The housing market will have a
massive impact on how well your current home sells, plus it could affect your new home purchase. If the market has low inventory, that means there are not many houses on the market and you may struggle to find a new home. So understanding the housing market in your area, taking into account factors like median prices of homes and
average mortgage rates (to name a few), is essential. This is why choosing real estate experts like Revitalize Realty who’s
knowledgeable about the local market is a must.
Tip #3: Know Your Options
If you've been considering starting an LLC (limited liability company) before you upsize, this could be a reasonable step to take. With an LLC, business owners can put the home either in their name or under the business’s. So why would you want to use an LLC
to purchase your home? Realtor.com lists two main reasons:
- Privacy: When an LLC is listed as the property owner, the LLC ownership details are kept confidential, unlike purchasing a home in your name.
- Protection: Homeowner's insurance only covers so much if someone is injured on your property. In a worst-case scenario, it's possible for your assets to be garnished to pay damages, taxes owed, etc.
In addition, there are advantages to operating as a DBA (“doing business as”). So if you’re looking to register a DBA in your state, this can be a great move, but make sure to work with a knowledgeable formation service to keep everything above board.
Click here to see how ZenBusiness can walk you through the process.
Tip #4: Know Your Requirements
Whether you upsize your home using an LLC or DBA or not, identifying what is important to you about your new home now and in the future is part of your planning and research process.
Planning long-term is crucial if you are upsizing to fit a business inside your home. However, it's not just about planning your home but also how do you want to grow your business? While you are thinking that upsizing is the answer now to accommodate employees or inventory, what happens if your business expands faster than you anticipated? Will you have to move again or will you have to invest in a dedicated office space, warehouse, or storage units? Consider your business growth strategy and whether it makes more sense to expand outside your home for your business and keep your current home.
With some research, planning, and strategizing, you could be upsizing your home soon. Make the decision that's right for you now and in the future. Reach out to
Revitalize Realty for their expertise and guidance. (251) 607-6008
