Looking for a way to get ahead of the game on your mortgage or extend your retirement savings? Downsizing to a smaller house may be the solution to your financial concerns, and there are plenty of other reasons to do it too.
The Nest Is Empty
If the kids have moved out and you now have more "guest rooms" than bedrooms, it may be time to downsize. Empty nesters are the most likely to consider trading down, because they don't need a large house when there are fewer people living in it. And without little ones to worry about, a smaller lot closer to town may have more appeal than it did before.
A smaller home is easier to keep up. From yard work and repairs to regular house cleaning, a smaller home requires less effort. If upkeep is even a little bit of a struggle, you may want to consider a smaller house that would be more manageable for your lifestyle.
It's kind of a no-brainer, but heating or cooling a larger house costs more than a smaller one. Unless you have independent temperature controls in each room, you're heating rooms that don't have occupants. It's an avoidable waste.
One of the biggest reasons people resist downsizing is they're afraid to give up space for all their belongings. But if you calculate the cost per square foot of your entire house, and then again for the rooms you're using just to store that stuff, you may be surprised how much it's costing you. A storage unit may be a much more affordable solution.
Free Yourself from a Mortgage
If you have enough equity in your property, selling it might give you enough money to buy a smaller home outright. Imagine your life free from a mortgage.
Reasons Not to Downsize
Downsizing isn't for everyone. Some people aren't ready to let go of the emotional connection to their homes. For them, no amount of cost savings can offset the desire to keep the house where they watched their kids grow up. Maybe they've managed to convert their empty rooms into usable areas or rented them to college students. Whatever the reason, downsizing may not be the right move for you.
You should also pay attention to the market before deciding whether to downsize. Selling when the market isn't favoring the seller may have an impact on your long-term goals and put you behind.
The experts at Coldwell Banker Rizzo Mattson, Realtors can help you decide if downsizing is the right move for you. And if you're ready, we'll help you make the transition to a home that's just the right fit. Contact us today to learn more.