The average person with a mortgage holds about $185,000 in equity in their home. Selling a home is a dream that many people have – especially if they already have their eyes on a new place.
Downsizing to a smaller property might be worth your time and money considering your current stage in life. So, what are some reasons that people decide to go this route? We’re happy to explain.
Keep reading to learn when you should begin thinking about downsizing your home.
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The Kids Have Moved Out and Moved On
Real estate transactions are among the most personal business moves that people make. One of the biggest reasons to downsize is that your kids have all moved out, grown up, and had families of their own.
When this happens, many older homeowners no longer feel the need to keep and maintain such a large family home. Moving to a smaller property more aligned with their current stage in life then becomes an intriguing option.
Home Prices Are Too Good to Pass Up
You might also look into a home downgrade if there are some amazingly priced homes on the market. Selling your house, buying a reasonably priced downsize, and pocketing the difference, can ease this transition.
This is a particularly good decision if you’re considering a move to a location where the real estate market is hot and you know you can get a good return on investment (ROI). You might choose to buy into an HOA with a condo or townhouse, or find a smaller property in a different part of town that suits you.
Maintenance and Bills Are Getting Out of Hand
Sometimes your home becomes too expensive to maintain. Between paying the utility bills, handling landscaping, repairing the roof, and making sure that your plumbing and electricity are working as they should, you might quickly spend a pretty penny.
When expenses start going through the roof, make sure to look into the best choice to sell house in your local and surrounding area. Explore how to sell a home in any market so that you never feel tied to and burdened by your current living arrangement.
As a good rule of thumb, it may be time to move on from the home once your housing expenses are taking up 30% of your budget or more. Keep accurate records of your monthly budget, income, and expenses so that you feel comfortable enough to act without hesitation when the time comes.
When Downsizing Your Home Is the Right Idea
The points above explain when downsizing your home is the right call. When you find yourself in any of these situations, it might be the ideal time to cut your losses and start checking your home prices. A real estate professional can help you find the best deal both for selling your home and buying an amazing new downsized property.
We’re also happy to help you at each step of the process. Are you interested in learning more? Check out our other articles to help you become a skilled and responsible homeowner.