Although downsizing has traditionally been a popular choice for homeowners when they retire, it may also be a worthwhile consideration for those who have gone through significant life changes or no longer find their current residence suitable for their needs. Therefore, individuals who have experienced such circumstances could also benefit from downsizing their homes. 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 . . .”

With inflation driving up the cost of most goods and services, there is a greater appeal in finding ways to save money. If you are exploring new budgeting strategies, it may be valuable to consider your home as a potential area for cost-cutting.

When contemplating ways to reduce your expenses, you may typically focus on recurring expenses such as groceries and other purchases. However, downsizing your home can result in a reduction of associated bills, such as mortgage payments, energy costs, and maintenance expenses. 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.”

The windfall you receive can be attributed to the equity in your home. After owning your house for a significant period of time, it is likely that you have accumulated a substantial amount of equity. You can leverage this equity as an asset to purchase a new home that better fits your current needs.

Once you are prepared to relocate, your team of real estate professionals will provide guidance and support throughout the entire process. This includes determining the appropriate sale price for your current residence, identifying the optimal location and size for your new home, and assessing what you can afford based on current mortgage rates.

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?

After obtaining the necessary information, arrange a meeting with a real estate consultant to address the following inquiry: What are my current options in the housing market? A housing market expert in your area can provide guidance on your home equity and how it can benefit you if you choose to downsize.

Bottom Line

If you’re looking to save money, downsizing your home could be a great help toward your goal. Let’s connect to talk about your goals in the housing market this year.