How to determine if it ’ s time to downsize
Individuals work hard to save enough money to purchase their homes . And the hard work doesn ’ t end there . Once homeowners settle into a new home , they may set their sights on renovations that suit their individual needs . And even when buyers find a home that needs no such work , maintenance requires homeowners ’ utmost attention .
• Cost : Perhaps no variable affects senior homeowners ’ decisions to downsize their homes as much as cost . No one wants to outlive their money , and downsizing to a smaller home can help seniors reduce their monthly expenses by a significant margin . Even homeowners who have long since paid off their mortgages can save substantial amounts of money by downsizing to a smaller home or even an apartment or condominium . Lower property taxes , reduced insurance premiums and the need to pay for fewer repairs are just some of the ways downsizing can save seniors money .
• Space : Many people love the extra space that single-family homes provide . But seniors can take a walk through their homes and see how many rooms they still use on a consistent basis . If much of the home is unused , seniors can probably downsize without adversely affecting their daily lives .
All that hard work is perhaps one reason why seniors may be a little reluctant to downsize as they advance through their golden years . In addition to the sweat equity homeowners put into their homes , all the memories they ’ ve made within their walls can make it harder to put a home on the market .
Downsizing is a difficult decision that ’ s unique to each homeowner . Seniors who aren ’ t quite certain if downsizing is right for them can consider three key factors to make a decision that ’ s in their best interests .
• Market : The real estate market is another factor to consider when deciding if the time is right to downsize . A seller ’ s market can help seniors get the biggest return on their real estate investment , potentially helping them make up for meager retirement savings . For example , home prices skyrocketed across the country during the COVID-19 pandemic , making that a great time for sellers to put their homes on the market . Seniors selling to downsize may capitalize on such spikes since they won ’ t be looking to turn around and buy larger , equally expensive homes once they sell their current place . If the market is down and seniors can withstand the work and cost a little longer , it may be best to wait until things bounce back in sellers ’ favor .
Downsizing requires careful consideration of a host of variables . No two situations are the same , so seniors should exercise due diligence to determine if downsizing is right for them .
46 Winter 2022 Thomasville Scene