Our friends at Keeping Current Matters recently published an article on downsizing now, in a seller’s market. According to the article, a reported 33 percent of homeowners contemplating selling their homes in the near future are planning to scale down. With that in mind, here are a few reasons why this might be the right time to make the move while the country is experiencing a seller’s market.
Potential financial advantages to downsizing include:
- A smaller house means less space, and less money spent on upkeep.
- Less spending on your monthly mortgage payment means more cash in the bank for your retirement years.
- Use the proceeds from selling your current home to pay cash for a smaller one. If you can’t pay cash for the entire amount, aim for a short-term fixed-rate mortgage to make up the difference.
It’s also important to ask yourself what type of lifestyle you desire after you right-size. Decide what you want to achieve from your move, which will help narrow down your possible housing options.
Finally, determine if you have built up enough equity in your current home to make a nice profit when selling. For most homeowners, the answer should be yes, and it will help you put a large down payment on your next home.
For more information, visit How to Plan Your Move and learn more about a simple, step by step approach The Olear Team uses to help people who are preparing for a downsizing move.