Considering downsizing, but not sure if it’s the right time to do so? There are many factors to take into account, and many reasons why people feel compelled to move to a smaller house or condo. When there’s no more kids in the house to look after, a big house can seem a bit much for one or two people to live in. More space means more to clean. Bigger property might mean more equity that can be used towards retirement. And the list goes on!
Downsizing is obviously a lifestyle adjustment, and something to mull over in its entirety to make sure you are really ready for smaller living quarters. Ask yourself these five questions to give you peace of mind and assess if you are, in fact ready to downsize:
- How much might my house grow in value if I stay?
Timing is everything when it comes to selling your home. The longer you wait, the riskier it could be when there’s uncertainty around the markets. If the market is looking hot - it might be a good time to sell. If things are going south, it may be better to sell than to wait and wait. Consider your timelines and speak to a real estate agent to help you assess the current climate.
- Does the size of the house really matter to me?
Overtime your home becomes part of your identity. It’s where you’ve built memories, and a life. It’s brought you new friends, provided comfort; it becomes full of furniture, trinkets, scents and people that define you. So is moving going to be easy? Probably not. You probably would feel the same way if you were moving to a bigger or similar size house - it’s change, and change isn’t always an easy pill to swallow.
There will come a time when bigger factors come into play - like the health and safety of you and your loved one. Your future physical and medical needs will likely change. Will there come a time when the stairs are too much to handle? When there’s too many bathrooms to clean, the yard is too large to mow and shoveling the snow is no longer possible? These are not pleasant to think about, but they are important and difficult factors to really consider.
- What will it cost me to move to a smaller place?
Make a budget for yourself on what it will cost for a moving truck,moving company, new furniture (you’re moving to a smaller space remember - what worked well in the old place may not make the cut in a smaller living area), the cost to get rid of items (if you’re looking to sell old furniture or decor on Kijiji, expect that you won’t get as much for the item as what you paid for it), and any fees associated with selling your home such as realtor and lawyer fees.
- What would be my net gain from selling?
Reducing housing costs by selling your house is an easy way to increase funds; provided you make a gain on your home. Do the math to find out how much will end up back in your pocket after you sell to make sure you have the right amount of gain to make the move worth it for you. These are the numbers you should be looking at:
The value of your home, actual or anticipated balance remaining on your mortgage or line of credit, net gain after subtracting total moving costs, and the cost of a new home.
- How will other life events impact my living in a smaller home?
It is possible that a family member; son, daughter, grandchild, aging parent or sibling may need a place to stay for awhile. Is the house you’re considering equipped to fulfill your physical and emotional needs? Keep in mind that when downsizing it should be the right move that works for you long-term and can accommodate for the unexpected without impacting your comfort, and sanity.
If you’re looking to embark upon the downsizing journey, contact me today. My team and I are well-equipped to answer your questions and help you get your home sale ready to ensure get you top dollar to start this next chapter of your life.