How Homeowners Win When They Downsize
When homeowners reach retirement age, downsizing has long been a popular option. However, there are numerous other life changes that may make downsizing worthwhile. Homeowners who have had a change in their lives or no longer feel that their house meets their needs may benefit from downsizing as well. U.S. According to the news:
“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, in an era when most things have become significantly more expensive due to inflation, saving money wherever possible has a lot of appeal. So, if you're thinking about different ways to budget, it might be worth considering 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 provides:
“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 Does This Mean for You?
If you're considering about downsizing, consider the following:
▪ Do my original reasons for purchasing my current home still apply, or have my needs changed since then?
▪ Is the space I have today actually necessary and desirable, or might a smaller place be a better fit?
▪ What are my current housing costs, and how much do I want to try to save by downsizing?
Once you've answered these questions, consult with a real estate professional to find out what your options are in the market right now. A local housing market expert can show you how much equity you have in your home and how it positions you to win when it comes time to downsize.
If you want to save money, reducing your house could be a wonderful way to get started. Discuss your housing market objectives with a real estate agent this year.
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