Many people decide to downsize, and they do it for many different reasons. Perhaps you just lost your job and can no longer afford your big house and equally big mortgage, or maybe you’re facing retirement and don’t need so much space. Some people just want to simplify their lives and not hang on to so much stuff. Whatever the case, downsizing is when you sell a large home to buy a smaller one.
Benefits of Downsizing
There are so many advantages to downsizing. If you’ve been in your existing home for many years or decades, it’s likely that it’s increased quite a bit in value and you will have a lot of equity built into it. You may even be pretty close to paying off your mortgage, if you haven’t already.
Buying a smaller property that’s more affordable will ensure you have plenty of equity left over. You may even be able to buy your new home or condo with cash, freeing you from the constraints from a mortgage and the associated interest involved. Plus, as a cash buyer, you will look more attractive in the eyes of sellers.
When you decide to downsizing to a smaller home, you can also look forward to less upkeep, fewer maintenance tasks, lower bills (energy, utility, etc.) and less space to worry about cleaning. If you’re facing retirement, you may also be facing some health or mobility challenges. Downsizing to a one-floor home, for example, will ensure you don’t have to navigate stairs. Or if you plan to move to an assisted living facility, there’s no large garden out back to worry about tending, no shoveling concerns in the winter and no lawn maintenance tasks to hassle with in the summer.
Downsizing also allows you to choose a better locale climate-wise (Florida, anyone?) or closer proximity to grandchildren. There’s no longer a need to be tied to one large home with all that maintenance, which frees you up to travel and see the world if you so choose.
A Handy Checklist
If you’re still on the fence about downsizing, ask yourself these questions:
- What reasons do I have for downsizing? Does the thought make me happy, sad, terrified? Is there another solution I haven’t thought of?
- Where do I want to live? Should I remain in the same general area, move to the coast, or purchase a luxury condo in town?
- How much property can I afford? Does it make sense to move financially? How much am I actually saving?
- Do I want to pay off my mortgage before I sell the house?
- What can I give away, sell, donate or throw out before downsizing?
Knowing the answers to these questions will help you decide if downsizing is right for you. Get pre-approved, partner with a Realtor, and start viewing properties. Embrace the downsize!
Contact Berkshire Hathaway Premier Properties
If you’re looking to downsize and need to sell your current home, we can help. Please contact Berkshire Hathaway Premier Properties at 713-862-0000.