Home Buyer ResourcesHome Seller ResourcesHomeowner Resources June 18, 2022

10 Signs it’s Time to Downsize

It can be challenging to know when it is time to downsize your home. Downsizing can be an emotional decision. You’ve spent years building a family in that home, and then sending young adults to build their own lives. It’s a home filled with memories. And knowing the right time to sell and downsize is crucial.

The housing market is hot right now, and you might be wondering how to capitalize on it. However, even if you have significant equity in your home, you will likely pay more for your new house…if it is comparable to your current home. So, what is the best method to take advantage of this market? Downsizing just might be the route for you. But how do you know if it’s the right time to downsize?

 

  1. Retirement. This is one of the most common reasons for downsizing. When utilizing your retirement savings best, finding ways to decrease your yearly spending is essential. Purchasing a smaller, more easily affordable home will help reduce your mortgage payment, property taxes, and insurance.
  2. Unused rooms. Do you have rooms in your home collecting dust? Are you only using one bedroom of your four-bedroom home? If a significant amount of space in your home is not being used, perhaps a smaller house would be better and cheaper as you would no longer have to heat (or clean!) those empty spaces. Smaller space means less energy and less money spent on utilities.
  3. Lifestyle change. When you purchased your home years ago, you likely were in a different season of life. Maybe you bought it right before starting a family, and now that the kids have moved out, you no longer need such an ample space.
  4. Overwhelmed with maintenance. Maintaining a more prominent home can be costly and time-consuming. Some enjoy the upkeep that a house entails, like gardening and mowing the lawn, while other maintenance tasks can be overwhelming. Larger homes equal more money and time on maintenance. If the idea of spending more time on your hobbies and less money on care appeals tto you, you might want to consider downsizing your home.
  5. Minimalist lifestyle. There seems to be a cultural shift in embracing the minimalist lifestyle in recent years and growing, especially since the onset of the pandemic. The longer you’ve lived in your house, the more likely you’ve accumulated many possessions. Downsizing offers the perfect opportunity to embrace the minimalist lifestyle.
  6. Financial reasons. If you’ve owned your home for several years in this current market, it probably has appreciated significantly. Finding a new, but smaller, home that still fits your lifestyle and needs may give you the financial freedom you’ve been looking for.
  7. Desire to travel. If you’ve always wanted to travel, downsizing to a smaller home may mean more flexibility with your budget to be able to do so.
  8. Desire to move to family in a more expensive area. Do you have family you want to live closer to, but they live in a more expensive area? Consider downsizing to help you be able to afford to live closer to those you love while not breaking your budget.
  9. Getting older. Though getting around might be effortless to you now, one day, you may not feel like climbing 15 steps several times per day. Perhaps maintenance is something you do enjoy, but as you get older, the physical toll it can take may be harder to manage.
  10. Your neighborhood no longer fits your lifestyle. Maybe you chose it because it was the perfect place to raise a young family. Perhaps it was near a great elementary school or your former job. While that may still be true, if you are out of that phase of life, finding a community that better fits your current lifestyle might be best for you.

If you have questions about the changing market, downsizing, or are looking to buy or sell, get in touch with one of our great agents today! They will make the process stress-free!