Downsizing has long been a popular option when homeowners reach retirement age. But there are plenty of other life changes that could make downsizing worthwhile. Homeowners who have experienced a change in their lives or no longer feel like their house fits their needs may benefit from downsizing too. Let’s take a closer look at how homeowners win when they downsize. 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 when inflation has made most things significantly more expensive, saving money where you can has a lot of appeal. So, if you’re thinking about ways to budget differently, it could be worthwhile to take your home into consideration.
When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. 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.”
That windfall comes thanks to your home equity. If you’ve been in your house for a while, odds are you’ve developed a considerable amount of equity. This is especially true considering how home values have appreciated in recent years. Your home equity is an asset you can use to help you buy a home that better suits your needs today.
And when you’re ready to make a move, your team of real estate experts will be your guides through every step of the process. That includes setting the right price for your house when you sell, finding the best location and size for your next home, and understanding 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 trusted real estate advisor like us to get an answer to this one: What are my options in the market right now? We can provide a complimentary property analysis and value report for your current home. This free report will show you how your house compares in value to other homes in your area and what you could likely expect to get for it in today’s market. We’ll walk you through how much equity you have in your house and how it positions you to win when you downsize.
If you’re looking to save money, downsizing your home could be a great help toward your goal. At Bay Shores Real Estate we’re a different kind of real estate firm. We’re a partnership of professionals, each dedicated to helping you find the life you love. One with more free time, less financial stress, more beauty, and less worry. Our firm brings all of the key real estate related services discerning clients need, together under one roof.
Let’s connect to talk about your goals in the housing market this year!