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Downsizing May Have Its Benefits...

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Real Estate Agent with Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA 92593-B

You started out with a starter home. You used sweat equity to improve the place. In the process, your family grew in size and it was time to look for a larger home. The process goes on and on and people, many times, find themselves in a home that is too big for them when they become empty nesters AND are nearing or at retirement age, which could trigger the question of, Should we downsize? (Boy, that was a run-on sentence) The article below shows some of the wins a downsizer could see by doing so.

If you are considering downsizing the first thing to do is contact your local Real Estate Professional and start the conversation.

How Homeowners Win When They Downsize

How Homeowners Win When They Downsize

Downsizing has long been a popular option when homeowners reach retirement age. But there are plenty of other life changes that could make downsizing worthwhile. Homeowners who have experienced a change in their lives or no longer feel like their house fits their needs may benefit from downsizing too. U.S. News explains:

“Downsizing is somewhat common among older people and retirees who no longer have children living at home. But these days, younger people are also looking to downsize to save money on housing . . .”

And when inflation has made most things significantly more expensive, saving money where you can has a lot of appeal. So, if you’re thinking about ways to budget differently, it could be worthwhile to take your home into consideration.

When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com shares:

“A smaller home typically means lower bills and less upkeep. Then there’s the potential windfall that comes from selling your larger home and buying something smaller.”

That windfall is thanks to your home equity. If you’ve been in your house for a while, odds are you’ve developed a considerable amount of equity. Your home equity is an asset you can use to help you buy a home that better suits your needs today.

And when you’re ready to make a move, your team of real estate experts will be your guides through every step of the process. That includes setting the right price for your house when you sell, finding the best location and size for your next home, and understanding what you can afford at today’s mortgage rate.

What This Means for You

If you’re thinking about downsizing, ask yourself these questions:

  • Do the original reasons I bought my current house still stand, or have my needs changed since then?
  • Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
  • What are my housing expenses right now, and how much do I want to try to save by downsizing?

Once you know the answers to these questions, meet with a real estate advisor to get an answer to this one: What are my options in the market right now? A local housing market professional can walk you through how much equity you have in your house and how it positions you to win when you downsize.

Bottom Line

If you’re looking to save money, downsizing your home could be a great help toward your goal. Talk with a real estate agent about your goals in the housing market this year.

 

Thank you to KCM for their research into this

Posted by

Grace be with you, and peace, from God our Father, and the Lord Jesus Christ.

2 Thessalonians 1:2 KJV

Keller Williams Realty Evolution

447 Newburyport Turnpike Suite #5

Topsfield, MA 01983

 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments(32)

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Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

It's amazing what we accumulate over the years Roy Kelley. I look at my packed garage and say "Son, someday this will be all yours." lol 

May 19, 2023 06:41 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Joe Jackson 

How are things in Ohio? Thank you for reading the post and taking the time to comment.

May 19, 2023 06:42 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, there is a time when it is time to downsize or "rightsize".   I sold my 2-story and bought a ranch, but still have the same SF, just laid out differently.

May 19, 2023 11:06 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Joan Cox 

I like the term right sizing as well as Smatry sizing. I'm always amazed at those who downsize and move into a 4000 sq. ft. downsizer...lol

May 20, 2023 04:36 AM
Joan Cox

Mine is about 3500 sf incuding my basement, 4 beds, 3 baths.  Just in case I have company, plan parties, etc.   

May 21, 2023 07:41 AM
Mary Hutchison, SRES, ABR
Weichert Realtors, Welch and Company - Kansas City, MO
Experienced Agent in Kansas City Metro area

My customers who have *finally* downsized really enjoy their living situation now. But it can be very difficult to get the process started!  I also see some younger buyers, who grew up in large homes, want the smaller "starter" home but still want the amenities of a larger space---?!?

May 20, 2023 12:10 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

All great information for anyone considering downsizing.  I've been doing that repeatedly.  Finally 8 years ago I bought my smallest house yet and am still here!  During that time, I've eliminated the energy bills and don't buy gas either.  A great way to retire - eventually!

May 20, 2023 05:09 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Doug- When we moved from a huge home to a smaller one, I instructed Larry to say "right-sizing" rather than downsizing. The benefits you pointed out are the same but more uplifting. 

May 20, 2023 07:15 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Mary Hutchison, SRES, ABR 

Downsizing can be viewed as a daunting process. I witnessed it with my father before he passed & who never downsized, as he became overwhelmed with all that he had accumulated through his 86 years.

 

I'm glad your clients goit through it and are happy

May 21, 2023 03:56 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Jan Green - Scottsdale, AZ 

It's good to have gone through the process of upsizing and downsizing to relate to our clientele. Pam & I bought one house (probably too small at the time) and now the lads have grown and moved on the house is the right size for us.

May 21, 2023 04:01 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Kathy Streib 

That's right, you moved from Florida to Texas and were able to "right-size". I have friends who moved from Massachusetts to the Waco Texas area. They bought a nice ranch that was smaller than the home they moved from

May 21, 2023 04:04 AM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Most people would be wise to downsize after their family has been raised and only two people are now living in the home, haha.

May 21, 2023 05:56 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

We work with many 55 and over Doug and the hardest part of downsizing is parting with their "stuff", even though they haven't used it in years!

May 21, 2023 06:46 AM
Patricia Feager
Flower Mound, TX

Doug Dawes - Although challenging and not easy, downsizing is a freeing experience. When you think about it, one can have a cozy environment without all the stuff. If health is the most important thing on the agenda, downsizing needs to be a high priority. 

May 21, 2023 07:31 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Brian England 

That's my sentiment but many don't agree with that...lol

May 21, 2023 03:18 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

"Stuff" can be a difficult thing for many Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 . My father grew up during the Great Depression and he never threw anything away

May 21, 2023 03:20 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Patricia Feager, MBA, CRS, GRI,MRP 

My uncle and his wife moved to New Mexico from Tennessee years ago to help with her health. She lived a lot longer than if they had not downsized and moved

May 21, 2023 03:22 PM
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

We downsized about 10 years ago and want to downsize (or "rightsize") again due to husband is now retired and although I'm still working, we don't need all the space we had before.  We have almost 2 acres and that's alot of yard maintenance that could be re-equated into going fishing or other leisure activities in our retirement.

May 22, 2023 03:58 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Diana Dahlberg 

You know, I hadn't equated yard size to downsizing. Thank you for the insight on that

May 23, 2023 07:42 AM
Diana Dahlberg

You are so welcome Doug Dawes ... at this time in our life, time is so very precious ... and it seems each days passes sooner than the last.  

May 23, 2023 09:39 AM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Gas prices are high, food prices are high, interest rates are high, gotta downsize somewhere.

May 23, 2023 07:27 PM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Good Morning Dave Halpern 

And I do believe all those will still be trending upward, Somethings got to give

May 24, 2023 06:34 AM