Everything You Need To Know About Home Downsizing
Posted on: 16 May 2022
Merriam-Webster defines downsizing as something negative that a company may do during tough times. Home downsizing, however, doesn't fit that definition. In fact, it can be an exciting time for many older Americans.
Why do people downsize their homes?
Home downsizing happens for many reasons. Many families decide to downsize after their children graduate from college and start their own lives. They simply do not need as much space in a home.
Other people decide to downsize when they retire so they can travel more. Perhaps it has always been their dream to travel North America in an RV or camper van. Selling their home would give them the influx of cash needed to fulfill that dream.
Finally, many older Americans realize that a two-story home is not the best option as they age. Having everything located on one floor allows them to age in place safely without the worry of stairs.
Is home downsizing worth it?
The answer to this question is different for everyone. It depends on your personal circumstances.
If you are downsizing to a smaller home in the same area, you will still have to pay property taxes and other associated costs with owning a home. However, you will likely save money on heating and cooling costs as well as maintenance costs.
It is important to note that home downsizing often puts homeowners in direct competition with first-time homebuyers, who are already feeling the squeeze in today's market. Working with an experienced agent can help you navigate the process.
How do you know when it's time to downsize?
There is no set answer to this question. It is different for everyone. You may want to consider downsizing your home when you are nearing retirement, want to reduce monthly living expenses, or are finding it difficult to keep up with the maintenance of a larger home.
If you plan on relocating to a different state, research when the best time to buy a home there is. Selling in a cold, northern climate may be very different timing than buying in a warm, southern climate.
Home downsizing comes with a range of emotions. You might be excited to simplify your life and declutter, or you might feel overwhelmed at the thought of buying and selling. No matter what stage you're at in the downsizing process, a licensed real estate agent can make it as smooth and stress-free as possible.
Contact a local real estate agent to learn more about home downsizing.
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