Homeowners in the market to purchase a new home are often looking to downsize or upsize.
Maybe your kids have moved out, you cannot afford such a large home anymore, you’re tired of the upkeep, or you simply want to live simpler – downsizing might be on your mind.
If you have been thinking that you may have more space than you’d prefer, read further and ask yourself these questions:
What are your financial goals?
If your goal for downsizing is to save money, you will need to watch out for hidden costs that can add up.
These include, but are not limited to:
- Taxes
- Repairs or upgrades
- Moving and storage expenses
- Living expense if relocating
- Closing costs
- Real Estate commissions
- Possible HOA fees
Even with these additional costs, downsizing can still make financial sense. You will just have to plan ahead and be prepared to factor these in.
What are you trying to eliminate by downsizing?
If your only reason for downsizing is because you are tired of mowing your yard – have you tried looking into a lawn maintenance company? If money is not an object, this can save you the trouble of having to go through another home sale.
You will have to ask yourself what is worth eliminating in order to part ties with your current home.
More than likely, you currently have more than enough home for you to handle. Downsizing can make sure you are spending less time tending to a large house and more downtime to relax. This is often a priceless exchange.
These questions to yourself will further solidify your decision to downsize and give you a better idea of what you are looking for.
How much should I downsize?
Are you simply downsizing your square footage, or do you want a condo or apartment?
You will have to do your research and consider the pros and cons of all of your options.
A condo or apartment will offer you free lawn maintenance, but you will have to share a wall with your neighbor. There will also be additional fees associated with the community more than likely.
Also, keep in mind your personal belongings you will be keeping. Are you going to declutter, or will you need a storage unit?
Finding a smaller home with a garage or extra bedroom may be a better idea than renting out a storage unit.
Whatever your reason for downsizing, always be sure that you are 100% ready before diving in. This will be a huge change.
Also check out: Buying and Selling a Home at the Same Time: What You Need to Know.
