Homeowners Can Win By Downsizing

Homeowners Can Win By Downsizing

Although downsizing has traditionally been considered a practical choice for those approaching retirement, it can also be an advantageous option for those who have other significant life changes or feel that their current home no longer suits them. Therefore, homeowners who undergo a lifestyle shift or are seeking to optimize their life, could also benefit by downsizing. US News Reported:

“Downsizing is somewhat common among older people and retirees who no longer have children living at home. But these days, younger people are also looking to downsize to save money on housing . . .”

As inflation continues to drive up the costs of goods and services, saving money wherever possible becomes increasingly attractive. Consequently, if you're exploring new approaches to budgeting, it may be prudent to assess how your home fits into the equation.

Typically, when contemplating ways to reduce your expenses, your mind may initially gravitate toward routine purchases - groceries and consumer goods. However, downsizing your home can also lead to significant reductions in associated expenses - mortgage payments, energy usage, and maintenance costs all add up. From Realtor.com: 

“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”

Your windfall is a result of your accumulated home equity. Given that you've likely resided in your home for a substantial period, there is a good chance you have significant equity. This asset can be utilized to facilitate the purchase of a more fitting home for your current needs.

Upon deciding to make a transition, a team of proficient real estate professionals will act as your trusted advisors throughout the entire process. This means helping find the optimal price for your current property, identifying an ideal location and size for your next home, and share affordable option based on current mortgage rates.

Next Steps To Take: 

3 Questions to Ask Yourself Before Downsizing:

• Have my needs changed since buying my current home and will a new home meet those needs?
• Do I really need the space I have now or would I be better suited (or happier) in a smaller place?
• What are my housing expenses now and will moving reduce them?

After you have answered these questions, schedule a consultation with a real estate advisor. They will help with the final question: "What are my available choices in the current market?" A knowledgeable local real estate specialist can guide you through an evaluation of your home equity and how to leverage it to your advantage when downsizing.

Bottom Line

Downsizing is not for everyone or it can be difficut to let go of a home you've lived in for a significant time. Let’s connect to discuss your options and help you come to the best decision for your household.