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Downsizing is a term many in the real estate industry typically reserve for those who find themselves moving into that “next chapter of life.” And this can look different for many … perhaps you are an empty nester, retired, or soon to be retired, perhaps those who are seeking to reduce living expenses, or those who are just looking to simplify their lives. I have found through my many years in real estate, people who are in their 50s and 60s often will choose to make this change at that time, or are considering making the change, as they contemplate their options. 

Many who are looking to downsize, are not just needing or wanting less space, they are also looking to simplify, as they look forward to an easier way of life … like not having to mow the lawn for example, or maintain the interior/exterior of their home, from the roof on down… imagine that? No, really imagine that – imagine not having to do those things! Don’t we all look forward to the days of making our lives easier, as we enter our next chapter of life. And so we should. We worked hard for these days to become our reality! 

Downsizing can be a wonderful opportunity to create a home that fits your needs and supports your best lifestyle as you enter your senior years. With careful planning and consideration, it can be a positive and empowering experience. So don’t let the thought of making the move overwhelm you, as it does for many when you are making big life changes … embrace it as you plan for the future. 

What is downsizing? 

Downsizing generally refers to selling your current home in favor of a smaller home, but that definition is a broad one. While downsizing traditionally means moving from a larger home to a smaller home, most often because the homeowner simply does not require that amount of space they are currently living in, nor do they care to maintain that larger home. It served its purpose for years, creating fond memories that will last a lifetime, but now, it is time to create your new memories as you move on to a more simple life.

Of course, downsizing doesn’t just have to mean just a lower square footage home. Some homeowners downsize to reduce the upkeep of the home. Why clean that forth bedroom when you are only using one, right? Others might simply want a home whose layout is more conducive to their current lifestyle. That might mean fewer bedrooms but a larger plot of land for gardening, or living closer to town, so they have the ability to walk to shops and restaurants, rather than having to drive to them for example. 

Experts also point out that downsizing doesn’t always mean saving money, either. Depending on where you would like to live, buying a new home could be a lateral move in terms of finances. It’s all about the ease of lifestyle for some. The cost of the new property, location, and other factors can impact the overall expenses. However, downsizing most often will result in lower mortgage payments, utility bills, and property taxes, freeing up more cash flow. While downsizing can have financial benefits, be mindful of the costs you will incur when selling your home and the moving expenses that go along with it. Many of my clients I find, make the decision not to take much of their furnishings with them. They will decide to sell, donate, or pass along to family members and purchase new furniture when they arrive at their new home. It is not only a dramatic savings on their moving expenses, but it also allows them to purchase furniture that will fit nicely into their new space. It’s important to consider all expenses when considering making the move. Lots to ponder on for sure …

When is the right time to Downsize?

Unsure when to downsize? It’s a very personal choice no doubt, but one you might consider if you’ve experienced a major life change. The ideal time to downsize depends on personal circumstances, such as changes in family dynamics, a desire for a simpler lifestyle, retirement, or financial reasons. Factors such as divorce, the loss of a loved one, can also prompt the decision. However, before downsizing, it’s important to do your research to narrow down your desired location on where you would like to move to, the type of home and property that will suite your wants and needs, and your budget.

And for those who know me know I have said this many times, in many different ways … If you feel the time is right, don’t let the market dictate your plan otherwise. The time to make your move – is when the time is right for you based on your own personal wants needs and desires … your why. In this case, downsizing is very much a quality-of-life decision, so I will always advise clients to not let the market dictate their decision when such a decision may greatly improve their quality of life. If the plan makes sense, and you have the ability to do so, move on “your time” because as we all know too well, life is too short.

What to Look for in a Downsized Home 

Ready to make the move? Start by working with a trusted real estate professional … that would be me 🙂 Assisting you on both sides in many different ways, to streamline the process, is what I do best.

When searching for a home to downsize into, I would advise buyers to think about what they may need during the start of their retirement and into the next phase in their later years. Make sure your wish list includes things to help make life easier to give you the ability to age in place if you will. One level living will always be at the top of the list. Accessibility to medical facilities, shopping, restaurants, parks, convenience to major highways, and any amenities that would be important to you.

Things you should consider when searching for your new home would be whether you will be living in the home full-time or seasonally, whether you plan to entertain friends or family frequently. While you are making the move to make life easier for you, having the ability accommodate family and friends when they come for a visit is something you may want to consider when making your plans. 

Define a budget, and look for homes in locations that fit that budget offering enough bedrooms and bathrooms, outdoor space, storage space, and proximity to necessary and desired amenities. Focus on what will improve your quality of life and make sure that your new home has the amenities that are important to you. 

If you are considering a community that has amenities for its residents, understand the costs associated with those amenities will be in the form of HOA dues (Homeowners Association). Consider taxes, and utility costs as well, as they could be significantly different (higher/lower) then what you are paying in your current home if you are moving out of state.

Preparing to Downsize 

First order of business, after speaking with a trusted real estate professional … gather your thoughts, make your “to do list” – First thing on the list – declutter. As you prepare to move, take a long hard look at your things, and see if you can donate or sell any of the items while considering your “new space” Consider disposing of items as they no longer serve a purpose and focus on what truly matters to you. When deciding what to keep, consider the sentimental value, the worth of the item, if it will fit in your new home, and if it will work with your new home’s decor and color palette.”

Start going through your things sooner rather than later, giving yourself the gift of time. This will avoid you feeling added pressure, making rash decisions or feeling rushed during a time that for some could be a difficult or emotional process. Hiring a professional/someone that can help you go through and organize your things if you need assistance could be helpful to some. 

It can be very difficult for some to get off the fence, the thought of making the move can be over-whelming when looking at the tasks at hand, and the many moving parts that come along with it. Do know, as a real estate professionals we are here to help you break it down, and guide you through the process every step of the way.

In case you missed It … Third Quarter Market Watch

Laura

The Key To Your Real Estate Success

Helping buyers and sellers achieve their real estate goals.

If you’re thinking about buying a home soon, with higher mortgage rates, rising home prices and ongoing affordability concerns, may make you wonder if it still makes sense to buy a home right now. While those factors certainly are important, there’s more to consider as you ponder… think about the long-term benefits of homeownership. If you know people who bought a home 5, 10, or even 30 years ago, ask them if they have any regrets. My guess is you are probably going to have a hard time finding someone who regrets their decision. Why is that you ask? The answer … home values grow with time – and over that time is where your wealth (equity value) grows. That may be why, in a recent Fannie Mae survey 76% of respondents say they believe buying a home is a safe investment. Let’s take a look at how home price appreciation can really add up over time – highlighted in the map below emphasizing home price growth over time ….. The map below uses data from the Federal Housing Finance Agency (FHFA) to show just how noteworthy price gains have been over the last five years. And, since home prices vary by area, the map below is broken out regionally to help convey larger market trends: Source: FHFA If you look at the percent change in home prices, you can see home prices grew on average of just over 57% nationwide over a five-year period.Some regions are slightly above or below that average, but overall, home prices gained solid ground in a short time. And if you expand that time frame even more, the benefit of homeownership show drastic gains homeowners made over the years become even clearer (see map below): Source FHFA The second map shows, nationwide, home prices appreciated by an average of over 297% over a roughly 30-year span.  Yes, that’s right 297% appreciation! Did I get your attention?  This nationwide average tells you the typical homeowner who bought a house 30 years ago saw their home almost triple in value over that time. Now that’s a lot of equity value you can take to the bank! 🙂 This is the key factor as to why so many homeowners who bought their homes years ago, are still happy with their decision. And while there was “talk” throughout the year that home prices would crash, this hasn’t happened. In fact, experts project, as time has shown – home prices will continue to rise for years to come.  So if you are wondering if it still makes sense to buy a home today, let’s talk! I would be happy to answer any and all of your real estate questions, as it pertains to your particular situation, to help you determine if purchasing a home today makes sense for you. Keep in mind, while you can’t deny the market environment we are currently living in, understand that just as important as that, is to not loose sight of the long-term advantages that come along with homeownership.  Laura The Key To Your Real Estate Success Helping buyers and sellers achieve their real estate goals.

I know the market has been a bit challenging for both buyers and sellers no doubt, the uncertainty of so much these days lends many to “take a pause”. Perhaps you are a buyer wanting to purchase a home, but with home prices not coming down, and interest rates still on the rise – you may be thinking … I’m going to put my home purchase plans on hold for a while and wait it out. If you have that crystal ball to know when that might be … please do share! 🙂

If you are seller, you couldn’t be in a better position right now to sell your home if that is your desire, since the equity gained in your home right now is probably more then you even thought possible. That’s what happens when supply doesn’t meet buyer demand it becomes a seller’s market. But wait … I need to purchase a home, after my home sells – how is this going to work for me right now you might ask? Let’s think about that for a moment … you must know, as I do – you can’t have it both ways, right? If you sell high … which in today’s market you most certainly will, and now, might I just say … may be one of the best times. Today many home sellers are receiving multiple offers, well over asking (if priced correctly) and in turn will put that equity gained into their new home purchase.

So, let’s look at the BIG picture, to shed a little perspective. When it’s a seller’s market, that is where you gain the most value from your home sale – you will then turn around and put the equity you just received on your home sale, on your home purchase – right. IF we were in a different market and you were to buy low, you are also going to find yourself selling low, thereby you would not have as much equity to put down on your new home purchase – because you sold lower than you would have had in a seller’s market. Get the picture … it’s all relative!

If you are a renter, you may want to think about the money you are wasting, helping your landlord pay off his/her mortgage, building their equity rather than building your own equity in your first home. And with rental prices as high as they are, it just doesn’t make sense to rent, when you can own.

It all needs to make financial sense no doubt, but all in all the real question you want to ask yourself is … why you are wanting to “make the move” – it always should come down to your why that will give you clarity on how best to move forward or not. But we all can agree that we cannot predict the future (no crystal ball here) – so how long will you decide to wait on the market? Are you a first-time home buyer, move-up buyer, or someone who is looking to downsize/upsize, or perhaps you would like to move closer to friends and family. All are very good reasons to “make the move” – so place more emphasis on your why rather than gamble with a market we have NO control over.

If you’ve missed it … here is the First Half 2023 Market Watch

Any questions don’t hesitate to reach out. I am here to help!

Laura

The Key To Your Real Estate Success

Helping buyers and seller achieve their real estate goals

It certainly is a challenging market for both buyers and sellers. Perhaps you are a seller who is locked into a low interest rate and may find it difficult to justify “a move” – even though life circumstances tell you that you really would like to “make the move.” Perhaps with the low inventory market we are experiencing, there is a fear that you won’t be able to find a home that meets your wants/needs to move into, after your home sells. And yes, your home will sell quickly and in some cases over asking, if strategically priced with no major objections. Let me just say this, and I know I don’t have to but … “You should never let fear dictate how you make decisions”. Don’t get me wrong – it is something to take under consideration no doubt – but in the end don’t let the fear ultimately keep you stuck in a place you don’t want to be. If this all sounds familiar to you, might I suggest you look at the BIG picture, and through your decision-making process, weigh in on the importance of your “why.” Everyone has a “why” – that’s what makes life happen right? As a real estate professional, and in all my 22 years of practicing real estate, I have never left any of my seller clients homeless 🙂 Together we will formulate a plan on how to move forward, put contingencies in place to protect you, so you never have to worry about that. 

Perhaps you are a buyer looking for your first home or maybe looking to upsize your current home. In either case – there is a “why” involved here. Maybe newly married, looking to set down some roots in a community, or perhaps your family is bursting at the seams, and you are looking for more space. There is a want and a need to your why – and consulting with a real estate professional and a mortgage professional would be a good place to start. Both will listen to what goals you are looking to achieve, and as the professionals will give you the information you need, along with the best guidance on how best to make your why a reality. 

So, understand your why first, and think about what that looks like to you – then take the steps necessary to prepare to “be ready” is key to making anything happen! Timing does play a role in anything you do, no doubt. My message I’d like to bring across is this … Don’t let fear dictate how you live your life and where you live it. But do “get informed”. For some it may be a few easy steps that you may not have even thought of. For others, there may a few more steps involved. But in either case if your goal is to make a move, consult with the professionals to see how they can assist you in making your why a reality. Everything has its time … focusing on your why, will help get you where you want to be on your time. 

As a professional real estate agent, it is important for me to keep up with the market. And learn all I can learn to better assist you. It arms my clients with the information they need to help them move forward in a way that makes sense to them. 

If you are thinking about making a move, but have some questions – I am happy to discuss all things real estate. Give me a call … I am here to help!

Laura

The Key To Your Real Estate Success

Helping buyers and seller achieve their real estate goals