Downsizing your home can be a liberating step towards a simpler lifestyle and more financial freedom. Most people think, ‘How can you do it when you’ve lived in this house for decades?’ But the truth is, you’ve probably reached a stage in life where going up and down the stairs is becoming difficult, you wish you didn’t have to keep the grass cut, or stepping over the tub in the bathroom is now challenging. Nonetheless, it is a crucial step, and many homeowners must take a lot of things into consideration before making the move.
In this blog, we have discussed exactly what homeowners wish they knew before they downsized their homes. Read on:
What Are The Benefits of Downsizing?
If you’re still skeptical about downsizing and moving to a smaller home or neighborhood, here are some benefits you might want to read:
It Offers Great Savings
If you’ve reached that phase of life where you need to save every penny you earn, you must be introduced to the benefits of downsizing. If your present house is mortgage-free, you might be able to buy a new home and yet have some reserve money. If not, it’s the right time to downsize and experience reduced monthly rent, insurance costs, and property taxes. If you can buy a smaller home with the equity in your current one, you may also be able to downsize to pay off a mortgage.
Decluttering
Another major benefit is the reduced clutter around the house. The bigger the house, the more stuff you tend to have at home. You will be surprised to see how many of your belongings make it to your new home and how you can survive on just that. You will find joy in getting rid of things you don’t need anymore and rearranging your new home with only what’s necessary.
Easy Maintenance
Finally, the ease of maintenance is a major advantage of downsizing. With less time spent on daily maintenance, you have more time to invest in other things. A bigger home might not give you the free time to do other things, as you’re busy working around the house all day.
So, even if your current home holds sentimental value, weigh the pros and decide to move to a smaller residence and community.
Tips and Truths About Downsizing You Wish You Knew
Now, let’s dispel a few tips and truths on what homeowners wish they knew before they downsized:
Considering the Financial Aspect
According to the latest S&P CoreLogic Case-Shiller Index data, the price of buying a single-family home in the United States rose by more than 20%. Interest rates, however, are rising and might stay high for a while. According to Zillow data, the average rate on a 30-year fixed mortgage right now is a little less than 5.6%. This is in contrast to 2021’s average rate of 2.96%. Your monthly expenses can increase dramatically if you intend to finance your new residence, particularly if you have already paid off the mortgage on your existing residence.
Finally, after running the numbers, you might feel that downsizing makes more sense financially. For instance, a few residents recently discovered that they would save hundreds of dollars a month by relocating to a condo after figuring out the cost of landscaping, pool, and lawn care, and continuing boat maintenance.
Neighbors and The Community
Consider the neighbors and community before downsizing and moving to another community. In the neighborhood you’ve lived in, you’re comfortable and familiar with the people around you. Be sure to learn about your neighbors and who will be living with you in the area. Especially if you are moving to a private retirement community, learn about the similar interests and values of people so you can enjoy your time in the new locality.
Do Not Underestimate The Emotional Challenges
When you think about downsizing, one of the things you’re going to find most difficult is the emotional turmoil you’ll go through. Imagine leaving a whole neighborhood behind, the home you’ve spent your entire childhood and youth in. You can psychologically adjust and accept your new lifestyle with positivity if you acknowledge these emotions as a natural part of the shift.
Living Space and Amenities
Downsizing, of course, includes reducing the clutter and square footage. However, do not forget to consider the size of the home you’re moving into. It should be big enough to accommodate all your needs and belongings. For example, if you’ve lived in a big home with multiple rooms, shifting to a home with two bedrooms can be a major adjustment.
Also, consider how often you host guests at home. Your home should be spacious enough to accommodate the number of family members and friends you wish to invite. Whether the home is a family home, with a suitable interior and space for accommodating essential things, if you’re moving in with kids, is another factor to think about. For a retiree, the premises must be able to support assisted living with extra space to make the necessary modifications.
Think About the Hidden Costs
Another point when you’re wondering what homeowners wish they knew before they downsized is considering the hidden cost. For example, does the house you’re moving into require too many repairs? If yes, how much will you be spending to make it liveable? Also, do my furniture and appliances fit into my new home? Or do I have to make a budget for new purchases? How much will it cost to revamp the basement and other utility rooms? These are some financial considerations you have to think about before downsizing.
Consider Consulting a Trusted Real Estate Agent
Finally, given these major considerations, you’re now ready to move to a new home. Emotional preparedness, reasonable expectations, and careful planning are essential for a successful downsize. This is why we always recommend speaking to a reputable realtor when looking for downsized homes. Your budget, needs, and preferences could vary, and you may struggle when choosing your next home. That’s when a real-time professional realtor can help search for condominiums and houses based on your choice and preference.
FAQs
What Is The First Thing To Do When Downsizing?
The first thing you have to do when you plan to downsize is to declutter. Living in a small place means living with fewer things. Begin by decluttering, and your process will become smoother.
How Do You Know The Right Time To Downsize?
Consider downsizing if your monthly expenses are going above 30%, your living standards have gone simpler, you can no longer manage a big home, you need a relocation, your home no longer fits your needs, you’re not utilizing all your property, or you want a lifestyle change.
How To Choose The Right Smaller Home?
To find the right home, think carefully about your future demands and lifestyle. Consider areas for working from home, entertaining family, and engaging in hobbies. Finding a neighborhood with amenities, access to healthcare, and social opportunities that suit your lifestyle is crucial.
