by Lisa Albinowski
Most of us are feeling the economic squeeze to some extent and are looking to cut costs. To reduce monthly expenses, many people choose to downsize. That means selling your home and buying something smaller. Downsizing could mean moving from a 10,000 square foot family home to a 2,000 square foot house, or to a 1,500 sq. ft. condo.
There are a lot of factors to take into consideration before moving into a smaller home. Will a smaller space work for you? Can cutting your square footage have a positive effect on your lifestyle? As a cost-cutting measure downsizing makes perfect sense. A smaller home typically means a smaller mortgage. It also means lower utility bills and reduced maintenance costs. The money you save can grow exponentially if you invest it well. Downsizing could even help pay for your retirement or your child’s college education.
Certainly, finances are one of the biggest downsizing drives, but there are others. Lots of empty-nesters find their house is too big since the kids have moved out. Retirees may find that vacuuming 3,000 square feet is a waste of time and energy. Some people size down to go green. Heating a few hundred square feet is a lot more earth-friendly than heating a few thousand.
Lifestyle is perhaps the biggest factor in the equation, and depends entirely on your personal wants, needs and any changes you hope to make. When downsizing, chances are your new house is going to cost a lot less than your current one. Assuming you’re able to sell your house for a reasonable price, you could put a huge down payment toward the smaller space and end up cutting your mortgage payment in half. You’ll also cut your power bill, water bill, landscaping costs, and your property taxes.
Will you be able to sell it in a timely manner? If you have to lower the price, how will that affect the projected financial benefits of your move? The good news is, the buyer’s market can help you out, since you’ll also be buying. While you may have to sell your house for less than you’d hoped, you may also be able to buy the smaller place for less. You could come out even, but it’s worthwhile to look deeply into the house sales in your neighborhood. Consult a Real Estate Professional and ask for a Comparative Market Analysis for your area.
• Lisa Albinowski - Licensed Real Estate Broker, SRES. CBR
Realty Connect Lisa@lisabroker.com 631-793-7329