Should You Downsize Your Home?

A little over 42% of all Americans will downsize their home before they retire - if they haven’t done so already. Many homeowners who will be retiring within the next 10 years are asking themselves if they should downsize their home. Their adult children are grown and they realize they don’t need all that space. Many are just tired of spending so much time tending to the upkeep of a large home and yard.

 

Downsizing can have a lot of advantages. Downsizing can reduce your real estate taxes significantly and a smaller home or condominium will cost less to heat and cool. The upkeep on a smaller home and yard will save both time and money.  Downsizing to a condo can give you freedom not having any yard work and time to enjoy the amenities such as pool and recreational areas.

 

If you are thinking of downsizing, list all the reasons, advantages and disadvantages to selling your home. First, determine why you want to downsize. Do you want a smaller home to be nearer loved ones or want to move to a warmer climate? Do you want more time to relax and enjoy life rather than having to take care of big house?

 

How close are you to paying off the mortgage?  What is the local housing market like? Go online and see what comparable homes in your neighborhood have recently sold for and how long were they on the market before selling. Next you have to determine what you would have to spend to sell your home. What amount of money and time would it take to fix, renovate and prepare your home to sell? An experienced and qualified real estate attorney can help in cutting down costs associated with commissions if you do a ‘sell by buyer’.

 

Determine where you would move to and what the costs are of those smaller houses or condominiums. Consider how much space you really need and don’t forget to factor in the extra space if you have frequent out-of-town company or relatives who visit. Calculate how much money it would take for you to relocate. Once you have these figures, you’ll have a better idea how much money you would make by downsizing and whether it would be worthwhile.

 

There are advantages too of downsizing such as getting rid of unnecessary items. This would be a great time to begin passing down items to your children or donating them. Many ‘downsizers’ make quite a bit of money selling items they will no longer have space for by holding garage and yard sales, and advertising items for sale online.

 

You may find you’re able to downsize to a smaller home and have a second home nearer loved ones or in a warmer climate.  You may decide to rent your larger home for extra income or invest the money made from selling your home into a retirement fund.  Weigh all sides to determine what makes the most financial sense for you and your family.

 

If you have tax or real estate questions regarding downsizing or selling your home, contact the real estate attorneys at Gantenbein Law Firm for your best options.