Home Size Matters: How to Determine If You Need a Smaller House
Aug 16, 2022

The course of life is unpredictable. Some events or circumstances can significantly impact what you need from your home, and retirement is one of the most significant changes we will have to face. This period of your life may mean doing more things you enjoy, such as traveling, visiting loved ones, or picking up new hobbies. But, it will also directly impact the needs of your home.

Find the right house for your needs.

Time causes social dynamics to change according to their respective context constantly. And in the case of real estate, it is also like that.

One way to find out is by analyzing the 2022 Generational Trends in Home Buyers and Sellers from the National Association of Realtors (NAR). It contains information on why people of retirement age choose to move. The need for a smaller home, the desire to be closer to loved ones, and retirement itself are cited as three of the top reasons homebuyers over the age of 55 moves.

If you’re in this group, changing priorities may be the most important thing for you today, and that could be driving your decision to downsize your future home. After all, as lifestyles change, the needs of your home are likely to change as well.

Also, moving to a smaller home can open up your schedule even more as it may take less of your time to keep it in order. This allows you to spend more time with the people you love or explore those hobbies you previously didn’t have time for. In summary, it’s a recipe that can lead to less stress and greater happiness.

Be careful with your budget.

Even if you intend or need to reduce the size of your new home, our real estate agents recommend that you be careful with your budget. Many variables determine the value of a house, ranging from modifications made by the owner to its location.

According to CoreLogic’s Homeowner Equity Insights, home prices increased by 18% during 2021. While this represents an annual gain for sellers, for buyers, it could be an extra effort to close a deal.

But if you’re thinking of selling your current home, then it means that as home prices rise, so does your equity. So you may have more equity than you think due to record levels of home price appreciation over the past year. Those capital gains could allow you to put down a larger down payment on your next home.

So putting more money down can lead to a lower monthly mortgage payment, giving you more financial freedom in the long run. It can also help navigate today’s competitive real estate market, as offering more money upfront could help your offer stand out.

Whatever your homeownership goals, our real estate agents are trusted and can help you find the best option for your situation. They will help you sell your current home and guide you as you purchase your next one and enter this new phase of life.

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