Is it Time for a Smaller Home?

It’s reasonable to say that most homeowners don’t fantasize about downsizing. However, there is a distinct advantage to not living large. After all, the time and money you used to spend on cleaning and maintenance can now be spent on more enjoyable activities. That is why some people consider downsizing to be a step forward rather than a step back. You’re not alone in thinking that less room is the way to go.

Retirement is one of the biggest adjustments many of us experience, and it can have a big impact on what you need from your house. This time in your life may call for you to do more of the things you enjoy, such as travel, visit with loved ones, or take up new hobbies. What does this mean for your home, though?

If you’re looking for ways to focus more on the important things in your life, the answer could be downsizing. A recent article from The Balance talks about why it could be a great option, saying:

“There are many reasons to buy a smaller home—or to downsize from your present home—but sometimes, the idea that “less is more” is what propels homeowners to buy a smaller home.”

Do you also agree with that buying a smaller property is like buying freedom to spend your time doing something other than playing dust detective?

Reduced time spent on upkeep – it’s OK to spend your weekends mowing weeds and grass and maintaining to a lovely rose garden while you’re a young, expanding family. It’s the ideal time to bond since everyone in the family can pitch in and do their part, but if you do this weekend after weekend for ten years, the monotony of a tedious activity loses its appeal. Lawn and garden upkeep becomes a chore, and the grunt effort develops a grudge that takes up mental space.

There is a home for every level and person, you just need to find the right one.

You Can Find the Right Home for Your Needs

The 2022 Home Buyers and Sellers Generational Trends from the National Association of Realtors (NAR) provides more information on why people of retirement age choose to move. It identifies the need for a smaller property, the want to be closer to loved ones, and retirement as three of the top reasons for buyers over 55 to relocate.

If you’re in this category, shifting priorities may be on your mind right now, and it’s possible that’s what’s motivating your choice to downsize. After all, if your lifestyle evolves, so will what you require in your home.

Plus, as The Balance notes, moving into a smaller home can open your schedule up even more. When you downsize, you may spend more time with the people you care about and less time maintaining your house, allowing you to spend more time with them or discovering new interests. This is a recipe for less stress and higher happiness.

Your Equity Can Make a Big Impact When You Downsize

When you sell your current home and move, home equity plays a significant role. It could be an excellent tool for assisting you in downsizing. According to CoreLogic’s latest Homeowner Equity Insights study, the average homeowner gained $55,300 in equity in the last year. Existing homeowners benefit from price appreciation and equity gains, according to Dr. Frank Nothaft, Chief Economist at CoreLogic:

Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth, . . . For low- and moderate-income homeowners, home equity has historically been a major source of wealth.”

As the value of your home rises, so does your equity. As a result of the unprecedented levels of home price rise over the last year, you may have more equity than you realize. These gains in equity may enable you to put down a greater down payment on your next house. Furthermore, putting more money down on a home can result in a lower monthly mortgage payment, giving you more financial flexibility. It can also be a big benefit in today’s competitive property market, because offering extra money up in advance may make your offer stand out.

A qualified real estate advisor can assist you in determining the best solution for your scenario, regardless of your home-owning aspirations. They’ll enter you in selling your present house and guiding you through the process of purchasing your next one as you embark on this new chapter of your life.

So what is next?

Your demands are likely to change if you’ve recently retired or plan to do so soon. As a result, now could be the ideal time to downsize. Let’s get in touch so we can work together to discover a property that suits your needs. Contact me today!

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