Downsizing from a big house to a smaller house is a right of passage for retirees looking to simplify their home maintenance needs and free up time during retirement. It is not necessarily always about reducing expenses.
The #1 reason retirees downsize is to free themselves from the burdens of maintaining a large home or a large property is something most retirees eventually consider doing as they no longer have the energy or wish to spend their time doing weekly indoor or outdoor maintenance tasks on the home or yard. Some also hope to reduce their financial burden on maintaining the large family home, move closer to family members, or move to a warmer community or area where there are more things to do that appeal to them in their free time. Interestingly enough, according to the National Association of Realtors, those who downsized the most were between the ages of 77 to 97, and scaled back their homes around 220 sq ft.
Trading the larger property for a smaller one, at times, in the past, resulted in a savings from the sale of the larger property. However, with the higher interest rates and fewer smaller homes available due to demand, it doesn’t always equate to huge dollar savings. For those who have a mortgage and will likely need a mortgage on the new home, this may be the case, but for many retirees the decision is not really a financial one. It is a way of life decision and a desire to be around adults similar in age in over 55 communities, or need to be closer to family.
If you or someone you know would like to explore the possibility of downsizing, or understand what your home may be worth in today’s market, give me a call!
My team and I are on standby 7 days a week, ready to help you take the smoother road to sold.