How Downsizing Benefits Homeowners
Downsizing has always been a popular option for homeowners approaching retirement age. However, there are numerous other life changes that could make downsizing worthwhile. Homeowners who have suffered a shift in their lives or no longer feel that their residence meets their needs may also benefit from downsizing. U.S. News explains:
“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 . . .”
And, at a time when most things have become significantly more expensive due to inflation, saving money wherever possible has a lot of appeal. So, if you're looking for new ways to save money, consider your home.
When you think about cutting back on your expenses, you probably think of things like groceries and other necessities. However, when you downsize your home, you frequently end up downsizing the bills that come with it, such as your mortgage payment, energy costs, and maintenance needs. Realtor.com shares:
“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 home equity is responsible for the windfall. If you've lived in your home for a while, chances are you've built up a significant amount of equity. Your home equity is an asset that you may use today to help you purchase a property that better meets your needs.
When you're ready to make a move, your team of real estate experts will be there to help you every step of the way. This involves determining the greatest selling price for your home, determining the best location and size for your future home, and determining what you can afford at today's mortgage rate.
What This Means for You
If you’re thinking about downsizing, ask yourself these questions:
- Do the original reasons I bought my current house still stand, or have my needs changed since then?
- Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
- What are my housing expenses right now, and how much do I want to try to save by downsizing?
Once you know the answers to these questions, meet with a real estate advisor to get an answer to this one: What are my options in the market right now? A local housing market professional can walk you through how much equity you have in your house and how it positions you to win when you downsize.
If you want to save money, reducing your house's size could be a wonderful way to get started. Let's chat about your home market goals for this year.