Upsizing to a new home is a major turning point for any homeowner. In the real estate market, you’re usually either the buyer or the seller. But upsizing means taking on both roles, where you sell your old home while also going through the process of buying a new one. Depending on your situation, you might even have to go through both processes in two different states.
As such, upsizing can be more complex than simply buying or selling a home, especially in a competitive real estate market like Eden Prairie, MN. Without the expertise and services of a trusted real estate group, you might run into costly pitfalls or unwittingly find yourself in a disadvantageous situation.
So, before you start home shopping in the gorgeous neighborhoods of the Twin Cities, read our guide on the dos and don’ts of upsizing to new homes in Eden Prairie, MN:
What are the benefits of upsizing to a new home?
More space for you and the whole family
When you think of the word “upsize,” the first thing that comes to mind is a larger space. Parents know that a growing family needs a home that can grow with them.
Furthermore, the COVID-19 pandemic has heightened the need for more living space. For many families, what used to be the “perfectly sized home” have become too small when remote work and online school became the norm. Similarly, if you’re someone who likes to have friends and extended family over, there might not be enough space to go around.
Eden Prairie, MN offers properties with expansive yards and spacious houses. Upsizing to a new home in this market can provide you with more living, entertaining, and working space. Properties within the $450,000 to $1.2 million price range sit on lots of around 1,742 square feet to 5,200 square feet. Larger homes have as much as 6 bedrooms and 6 full bathrooms, in addition to amenities like an office space, a home theater, a great room, a walk-in closet, and others.
Better financial stability
Real estate property is one of the most stable financial assets you can have. But if your current home is in a neighborhood with low appreciation rates or a negative property market, it likely won’t be a worthwhile investment in the long term.
If this is true in your case, then selling your current home and upsizing it to one with greater value can mean better financial benefits. In a positive property market like Eden Prairie, your home’s value is more likely to appreciate over time, giving you better returns on your investment should you decide to sell in the future.
Moreover, a larger home can mean business opportunities. You can rent out one of the spare rooms, or perhaps an accessory dwelling unit – such as a guesthouse or detached garage – whether for the long or short terms. Or, if you have a small business, you can use the extra space as an office, which can help you save money.
Opportunities to customize your dream home
A bigger home may include bonus rooms that can be personalized or renovated to fit your needs. You can turn them into a kids’ playroom, a personal gym, entertainment space, and so on.
Spending months at home during the COVID-19 pandemic has also brought a renewed appreciation for natural, open spaces. If you want a charming garden where you can grow herbs and plants, or a cool patio where you can entertain guests or have dinner al fresco, you can have one – or both – if you choose a new home with a larger outdoor space.
And if you decide to relocate to a new construction home in Eden Prairie, you’ll have even more creative freedom in customizing your house, ranging from the floorplan and amenities to details like kitchen countertops and paint colors.
What mistakes should you avoid when upsizing to a new home?
No proper financial planning
Before buying a bigger and more expensive home, you should first make it a priority to get your finances in order.
If you’re selling your present home to partly finance a new property, find out how much equity you have on your current home and the profit you can get when you sell it. You can use online calculators to get a ballpark figure on how much your home is currently worth, but if you want to have a more accurate assessment, it’s best to consult an experienced real estate agent who is knowledgeable about home pricing trends in your area.
Your Eden Prairie real estate agent can refer you to trusted financial consultants and mortgage brokers who can help you find loans or mortgages that best suit your financial situation. Getting pre-approval is an essential first step, as this will give you an accurate picture of the kind of home you can afford.
It’s also important to assess your budget beyond the home purchase price. Bigger homes mean heftier expenses, including higher property taxes, mortgage, homeowner insurance, and electricity and water bills. Make sure you can maintain a good quality of life after paying these monthly expenses.
Overestimating the amount of space you need
The idea of having more living space can be exciting, especially when you start thinking about living in the home and making it your own. But emotions like this can become overwhelming and might lead you to purchase a home that has more space than what you actually need.
This can be a very expensive mistake and one that can lead to buyer’s remorse. Not only will you have to buy new furniture to fill up these rooms, but you will also be burdened with the upkeep of a bigger home with too much unnecessary space.
When considering your property options, take a step back and re-evaluate your priorities. What property features are non-negotiable? Which home amenities are your absolute must-havesand which ones do you want, but can do without? Answering these questions will help you keep a clear head and avoid wasteful spending when choosing a new home.
Rushing the home buying process
Upsizing to a bigger, better home may be a dream come true, but the process of getting there is not always easy. The tight competition in Eden Prairie’s real estate market can come with a lot of pressure, and this might cause you to rush through important steps to get the best deal possible. While some risks may be worthwhile to make sure you get your dream home, others can lead you to a path of disaster.
It’s important to understand the market and be clear about your priorities before choosing a property. Your Realtor will help you stay grounded and objective throughout the process. They can provide you with in-depth knowledge and an accurate analysis of the local market, including reliable home value estimates, so you can make well-informed decisions.
Not planning for the long-term
A new home – particularly a bigger and more expensive one – is a major investment. Before taking the plunge, look closely into factors that can affect the returns on your investment over the long run. This means making sure you buy a home with high potential resale value.
While no one can predict what will happen in the future, you can get a good indication of a property’s future salability from present conditions. Some of the things to look into include:
- Is the property close to important public services and amenities?
- Are there any community centers, restaurants, or good schools nearby?
- What has been the pricing trend and buyer demand in the area in the last ten years or so?
- Are there any future developments planned in the neighborhood?
The answers to these questions can give you peace of mind that you’re putting your money in the right place.
In addition, it’s crucial to have a realistic forecast of you and your family’s living situation, such as how long you plan to stay in the area, how your family’s needs might change, and if the new home can continue to accommodate your present and future needs.
Why move to a new home in Eden Prairie, MN?
Buying a home in Eden Prairie is a great long-term investment
Eden Prairie’s real estate market has some of the highest home values in the US, and for good reason. The city consistently earns a spot in Money magazine’s “Best Places to Live in America”, largely because of its outstanding schools, thriving economy, and family-friendly communities.
Properties in the area have premium value. Since 2000, real estate has appreciated around 60.15%, with an average annual rate of 2.21%. From 2020 to 2021 alone, Eden Prairie home values have gone up by 13.8%, with properties listed at around $167,000 to $ 3.3 million or more. These data indicate that upsizing to a new home in Eden Prairie, MN is a good move, investment-wise.
There are many gorgeous, family-friendly homes in Eden Prairie
If you’re looking for a home fit for a growing family, Eden Prairie is the perfect place to settle down. It has been named “The Best Suburb to Live In” (2021) , and ranked third in Niche.com’s “Best Places to Raise a Family”(2021), among many other accolades.
The majority of the housing stock in Eden Prairie is also ideal for families. Single-family detached homes are the dominant property type, taking up around 54.38% of the city’s housing units. Three to four bedroom houses are common, making up 52.76% of homes here. These include existing homes, new construction homes, townhomes, and luxury homes, many of which are waterfront and/or found in gated communities.
You also have a wide variety of architectural styles to choose from, ranging from the Twin Cities’ favorite Craftsman, Arts and Crafts, and Bungalow home styles to elegant Queen Anne, Italianate, and Tudor-inspired mansions.
Eden Prairie has a prosperous economy
As part of the Minneapolis-St. Paul Bloomington Metro Area, Eden Prairie has one of the most diverse and self-sustaining economies in the country, comprising various industrial, commercial, and cultural industries. Moreover, this fully cosmopolitan area is home to several industry giants, such as US Bancorp, United Healthcare, Target, and Best Buy.
There are over 7,200 firms in Eden Prairie alone, and around 49% of them are owned by women, minority groups, and veterans. Major companies like SuperValu Stores Inc. and C.H. Robinson Worldwide have their headquarters here as well. With an abundance of opportunities, the city enjoys an unemployment rate of around 3.2%, which is substantially lower than the US average of 5.2% (as of September, 2021). Eden Prairie is also projected to have a job growth rate of 37% over the next decade.
Although its tax rates are higher than the US average, the city has been receiving an AAA bond rating from Moody’s Investors Service since 2003 because of its low debt, diverse tax base, robust financial operations, and healthy reserves and liquidity.
Eden Prairie is home to some of the best schools in the state
The Eden Prairie School District is a top-rated public-school district that consistently earns straight A ratings from Niche.com. Serving more than 10,200 students, the school district maintains top student performance through an innovative curriculum, small class sizes, and a dedication to family involvement and student safety.
Eden Prairie is also home to the following academic institutions:
- International School of Minnesota (ISM), a private college preparatory school known for the outstanding academic achievements of its students
- Hennepin Technical College, a college campus under the Minnesota State Colleges and Universities system that offers 45 diverse programs and degrees to full- and part-time students
- The Performing Institute of Minnesota Arts High School, a tuition-free public charter school that provides classes in music, dance, and theater for high school student artists across the Twin Cities
Eden Prairie residents enjoy a high quality of life
The Minneapolis-St. Paul metro area earned the top spot in BestPlaces.Net’s Best US Cities for Seniors in 2011, and suburban cities like Eden Prairie rank high in terms of providing residents with healthy lifestyle choices, recreational activities, social and emotional support, and good quality sleep.
As an Eden Prairie resident, you get to enjoy a well-equipped health and fitness center, a highly supported arts community, and more than 1,000 acres of parkland brimming with bike and nature trails. Additionally, you will only be 12 miles away from the world-class entertainment and cultural amenities in downtown Minneapolis.
Tips for upsizing to a new home in Eden Prairie, MN
Be clear on what you need vs. what you want
This is an important rule in any home-buying venture. List down the home features you need to have, including the kind of neighborhood and community amenities that are right for you and your family. This will allow your real estate agent to narrow down your options and find the perfect home fast.
Among the things to consider are accessibility to good schools, proximity to the downtown area or urban conveniences, and travel time to and from work. Consider the extras as well, such as living in a gated community with round-the-clock security, a waterfront location, or one that’s near parks and trails. The more specific you are with your needs and preferences, the more efficient the home hunting process will be.
Be on top of the selling process for your current home
Ensuring your current home’s sale before hunting for a new one can help you hit two financial birds with one stone. First, it can help you afford a larger down payment, which may qualify you for better terms and a lower interest rate while making you a more competitive buyer. Second, it helps you avoid the stress of having to pay two mortgages at the same time.
If you’re planning to sell your current home in the Twin City Metropolitan Area, our team at Helgeson-Platzke Real Estate Group can help you determine your home’s value and the highest possible price you can fetch for it. Request for our valuation report here.
Prepare for every possible outcome
Upsizing can be a time-sensitive process, particularly when it comes to timing the sale of your existing property and closing on your new home.
Here are some tips that can help you gain an advantage and avoid difficult situations while navigating Eden Prairie’s competitive real estate market:
- Submit a non-contingent offer. If you’re in the process of selling your current home, consider making a contingent offer to the seller of the home you’re interested in. In your offer letter, indicate that your purchase is contingent upon you selling your old home, which is a good way of protecting your interests. However, in a strong seller’s market like Eden Prairie, submitting an offer with this clause might make you a less competitive buyer, especially if there are other offers on the same property.
- Prepare temporary housing. The timing of property transactions can be hard to predict, and you might find yourself in between living situations, such as when you have already sold your old home but still can’t move into your new one or hasn’t closed a sale yet. Make sure to prepare for temporary housing arrangements for you and your family, such as staying with a friend or booking a short-term rental, while waiting to move into your new home.
- Work with the #1 Homeseller in Eden Prairie. The Helgeson-Platzke Real Estate Group has been providing holistic real estate services in the Twin City Metropolitan area since 1983. Having been in the market for 36 years, we have perfected our home selling process and home buying strategy.
With our global affiliations, cutting-edge search engine marketing, and professional staging and photography services, we can help you manage the intricate process of upsizing, particularly buying and selling a home at the same time at the best possible profit.
Find your dream home in Eden Prairie today!
Are you ready to upsize to a better home in Eden Prairie? Get in touch with our team at Helgeson-Platzke Real Estate Group today! Call us at 952.942.7777 or email us at support(at)hprealestategroup(dotted)com. You can also leave us a message here!