You’ve been thinking for a while now about downsizing your home. Maybe kids have moved out, your family status has changed, you are relocating for work or just simply don’t want as much house to take care of. Downsizing can have a lot of benefits but doing a little bit of research before pulling the trigger can help you make a more informed decision on the right house and location.
Here are some basic do’s and don’ts of downsizing.
#1. Think long-term.
Will this be your forever home? Are you planning on retiring in this home? Or you simply looking for a house to stay for 5 to 10 years until things change again? Thinking long-term down the road is really the best way to determine the right size home for you now.
#2. Are you planning on paying off debt?
Downsizing is a great way to lower your monthly mortgage payment and terms, giving you more cash flow throughout the month. This could be a great way to pay off debt, save money for college or some other expenses, or just free up cash flow throughout the month.
#3. Don’t go too small, thinking that a smaller home means less maintenance.
Just because you’re moving into a smaller home doesn’t necessarily mean your maintenance will be any easier. Smaller homes tend to get messier a lot quicker, but the cleanup process can also be faster. Do you want low maintenance on the landscaping as well or just the inside? Choosing a condominium may give you all the benefits of a low maintenance home while you are still building equity with a mortgage.
Additional Resource: A Guide to Downsizing for Seniors and Their Loved Ones
#4. Think about practicality.
How many bedrooms do you really need? If it’s just you, a one bedroom might be ideal but then again, if you have guests or prefer an extra room for an office or hobby room, a two bedroom might be ideal. If you have rooms in your home now that are just taking up space or have become a catchall for storage, it may be time to donate, sell, or store your items off-site and downsize the number of rooms you actually use.
#5. Do think about location.
Do you want to be close to adult children or grandkids? Close to medical facilities or modern conveniences? Are you looking for a low maintenance townhouse community that offers everything that a small village would such as restaurants, markets, and amenities? Think about the commute times if you’re planning on working and what you do on a daily basis so that you have the lifestyle you want without the inconvenient location.
#6. Do consider the sale of your existing home.
Will you be using equity from the sale of your existing home to purchase the new house? If you are downsizing, your payment may go down or you may have enough equity to cover the entire purchase depending on how much left on your existing mortgage and the current market values. Buying a home with little to no mortgage is an extremely attractive possibility.
Downsizing might be ideal for many people but it’s important to consider why you are downsizing and if it’s the right time. Give me a call today and let’s discuss what your needs are. This is what I do.
Read More: How to Tell How Big of a Home I Need
Remember, “rightsizing” is my specialty. Finding the right size home for your needs and your budget is what I love to do. Whether you are downsizing or looking to upgrade, for anywhere in the Frisco real estate market and surrounding areas give me a call.