09 Oct What Should I Consider When Downsizing my Home?
Many individuals spend years upgrading their homes each time they move, whether due to an increase in income or an increase in family size. Although a large home may serve you well for years or decades, the time may come when you start to consider downsizing your home. People decide to downsize for many reasons, from becoming empty nesters and nearing retirement to a desire to reduce or eliminate debt. The process can seem daunting since there are many factors to consider.
Reasons to Downsize Your Home
Individuals choosing to downsize can be at a variety of life stages and decide to downsize for different reasons. Sometimes the size of the house no longer fits within the individual’s or family’s lifestyle, while in other cases, the decision is financially driven. Regardless of the reason for downsizing your home, the process can be streamlined by researching your options and going in prepared.
One of the most common reasons for downsizing involves becoming an empty nester after the children have grown up and moved out of the house. During parenting years families need more space, particularly large families who need multiple bedrooms and prefer large yards for children to use.
Once the children go to college or move out to have families of their own, couples often want a home with less yard maintenance and fewer rooms to keep clean. Downsizing is an easy way to simplify your lifestyle after your days of parenting young children are complete.
Investment and retirement fund options
Even when a family is comfortable paying a large mortgage, sometimes a long-term financial assessment shows that funds could be more beneficial if they weren’t tied up in mortgage payments. Downsizing your home could mean a more manageable mortgage payment and more money redirected toward retirement or other investments. This is especially helpful for individuals who do not have a robust retirement income waiting for them.
Some homeowners purchase larger or more expensive homes that end up leaving them house poor. Others purchase a home that is easily affordable at the time, but financial circumstances changed. Still, others find that they have accumulated other kinds of debt and long to become debt-free.
In any of these circumstances, it can be helpful to downsize your home to become more financially comfortable. If you sell a house with a large mortgage payment and purchase a less expensive alternative, you can use the money from the sale to pay down or eliminate your debt. If you decide to downsize in a major way, you have the potential to pay for your new home with cash and get rid of a mortgage payment completely.
Reduce maintenance costs
Reducing the size of your house results in fewer rooms to clean and less space to heat and cool, saving you money on your electricity bill. A less expensive home means lowering your tax and insurance costs. If you choose to move to a different neighborhood or a home with a smaller lot size, you can reduce other regular expenses like HOA fees and yard maintenance.
Another common reason to downsize a home is due to life changes that may or may not be out of your control. Getting a divorce or losing your job could lead to necessary downsizing. Sometimes individuals choose to downsize in conjunction with an expected life change, like moving to a different job or moving to be closer to family members. Sometimes a downsize stems from someone’s decision to make a conscious effort to be more eco-friendly.
Factors to Consider Before Downsizing
Before you decide to downsize your home, make sure you have considered all factors and have created a solid downsizing plan. If you have lived in a large space for a long time, it can seem like an overwhelming process. Is your home generational or otherwise sentimental? Do you have a large volume of items inside your home that will take a long time to sort through and reduce?
Are you worried about moving into a smaller home because other members of your social circle are not planning to downsize? Do you feel so attached to your space that it is emotionally draining to consider moving? All of these factors can be roadblocks to downsizing, but with a plan in place, you can overcome any of them.
How To Downsize Your Home
Making a structured plan for downsizing your home can make the entire process easier and less stressful. If you know your options for purchasing a new home and selling your old one and stick to a realistic timeline, it can help with the emotional difficulties you may experience. Downsizing your home can be an exciting experience when you are organized and work with helpful professionals.
Analyze what you own
If you are used to living in a large space, you probably own a lot more personal property items than you think. During the downsizing process, you will need fewer items. If you are downsizing the number of bedrooms, think about what you want to do with the extra furniture. Storage may be at a premium in a smaller space, so decide which items should be kept, which items should be passed along to other family members, which items are valuable and can be sold, and which items need to be donated or thrown away.
Stay away from storage
As you reduce your belongings, it can be a mistake to use a storage unit to hold your extra items. Part of simplifying your life involves getting rid of items and not simply changing the location of them.
Don’t rush yourself
Some individuals avoid starting the downsizing process because they are afraid everything will move at a fast pace and they will be forced to make decisions too quickly. Take your time finding the best downsizing solution for yourself, even if it takes a couple of months.
Ask for help if you need it
When you run into roadblocks or have questions, reach out to professionals who know the real estate business and can get you answers.
Consider all financing options
Get an overview of your options for both selling your old home and purchasing your new, downsized property. The process may be different for each transaction. If your current home is in need of repairs or if you want to sell it quickly for a cash offer, an investment company like Core Properties is the easiest and fastest way to reach your goals.
Why Choose Core Properties
If you are downsizing your home for any reason, reducing the hassle of selling your current property can be a big stress reducer. Core Properties discusses your property with you and comes by to view it in person. You will receive a cash offer on your home as-is, without the need for an inspection or for any repairs to be made.
This can save you an enormous amount of time and money you would have spent getting your home in selling condition and paying a realtor commission. Closing can take place in as little as a week, so you don’t have to worry about paying for your new home while still trying to make repairs and find a buyer for your old one.
Core Properties will buy your current home as-is for cash. We take all of the work out of selling your home and pay cash fast.