1. Common Reasons People Downsize Their Homes
One of the most common reasons people decide to downsize is a change in circumstances. It could be that the original house they decided to buy was too expensive, or their real estate agent advised them that selling a home in a slump market would be a guaranteed hit. Perhaps they realized they were ill or injured and didn’t want to spend the money on an expensive hospital bill, or maybe a sick child put them into the position where they needed to sell quickly in order to cover funeral expenses. The point is that people don’t always realize they need to sell their home when circumstances warrant it. You may want to stay where you are, or move to another place like Atlanta, Georgia that might fit your lifestyle better. This is where a professional real estate agent can come in handy.
Another reason people downsize is that they are simply unable to afford the monthly payments on a home. This may sound like an excuse, but in reality it is the truth. If you have ever gotten yourself into this position, you know how hard it is to convince people that you have the means to pay the mortgage on a regular basis. Your income might be better than your job salary, but you still can’t make ends meet. If you are trying to sell because you can’t afford the payments, then you are going to have to take a different approach to selling your home. Or maybe its just time to reduce your household costs and sell your Georgia home.
You may decide to rent a portion of your home or sell it for less than it is currently worth. However, you will not get all of that money back. In some cases, you will end up owing more than the home is worth. Of course, you won’t have to deal with all of that right away, but over time you will find yourself getting frustrated.
The last thing that we are going to talk about is selling the home that you own outright. This can be one of the most difficult things that you will ever do in your life. You will need to have plenty of real estate experience and knowledge in order to be successful. Not to mention, you will have to put a lot of effort into this process. Be prepared to put in the time and effort to sell your home.
As you can see, there are many reasons people choose to downsize. However, you should be prepared for a few of the common reasons people do it. You can’t let the possibility of selling your home go unnoticed. You should always have a plan for your real estate life.
2. Pros And Cons Of Downsizing
There are pros and cons to downsizing your home. You may be thinking about downsizing your home as a way to save money on mortgage payments and keep your home in the family for your children. But there are also many cons to downsizing that you need to consider before you decide to move. First, you will lose storage space and possibly living space that is needed by your spouse or significant other.
One of the big benefits to downsizing is the reduction of utility bills, both electricity and your GA natural gas bills. With less money to spend on living expenses, your bills will usually be reduced. This can be a big benefit because it means that you will no longer be required to put your bills off. Instead, you can start paying your bills early so that you do not have to worry about late fees or penalties. If your children live at home, you may have to move to a smaller home or your kids will live with you so there is more of a chance that you can save money with downsizing.
There are other things to consider as well. How much money are you currently spending on your mortgage? If you are nearing the end of your loan term, you may not be able to refinance to reduce your payments any further. In some cases, you can choose to remain in your home and just pay the lower monthly payments while you continue to pay off the loan. However, it will take longer to save money if you have to move.
If you love the way your house is now and feel it is the perfect home for your family, then there is no reason you should give it up. But, you need to consider all of the things that will have to change as you move. You need to make sure the kitchen can withstand small cooking items. Your garage will probably have to be modified as well. The last thing you want is to have to pack everything up and go through the motions of moving and transferring your electric and gas services.
Although the pros and cons of downsizing your home depend on what your circumstances are, you will likely find that there are things that will not change. Just know that you have to come to terms with what those changes are and plan accordingly. This means you need to budget accordingly. You also need to think about your life style and determine if your lifestyle requires a big home or a small home. It is a decision you will have to make.
3. Tips And Mistakes When Downsizing Your Home
When it comes time to downsize your house, there are some mistakes that you will want to avoid. Let s discuss some of the most popular mistakes new home buyers make while downsizing. Perhaps you are having trouble getting up and down the stairs anymore, or perhaps you just do not need the large mortgage payment any longer. Perhaps your family needs more space or you have decided it is time for an upgrade. No matter what the reason may be, below are a few tips to help with the transition from your high interest rate home loan to a lower fixed rate mortgage.
One of the biggest mistakes many homeowners make during downsizing is mis-understanding the financial benefits of staying in their current property. Sure it will be difficult to leave your family home and all of your belongings behind, but the rewards of staying can far outweigh the difficulties of downsizing and throwing out mny of your belongings. First, after downsizing, you will likely have fewer bills to pay for because you will have a lower monthly payment. This alone can help ease the transition for many.
Second, while you are downsizing, if possible, you should try to keep as much space uncluttered as possible. It is tough to move into a smaller house and then all of your belongings must be spread over a large area. Decluttering your home will increase the chances that you will get through the difficult first few years after downsizing since you will have much less room to be storing all of your things. A cluttered house also takes away from the emotional benefit of moving into your new home since it will seem much smaller and more cramped than it did before.
Third, another mistake that people often make when they are downsizing is that they try to fit everything back into the same space. While you will be able to some degree fill in certain spaces, such as in hallways or smaller rooms, this is an artificial way to fill in space. In order to effectively deal with the increased size, it is recommended that you leave some space in your house. You will have to experiment with this to figure out what works best for your needs. Make sure not to make these mistakes when downsizing though.
Finally, another mistake that is made when downsizing is the removal of appliances. It is important to realize the importance of maintaining certain appliances. One of the biggest benefits of having a smaller family home is being able to save money. This can be accomplished by not removing necessary appliances, upgrading them. You can look into more energy efficient models whether they run on natural gas or electricity.
Conclusion
From saving on your gas and other utilities, to saving time and expense on upkeep and cleaning, the truth is that downsizing can be a beneficial experience. Even if you do end up making mistakes when downsizing, it will give you a valuable experience that you can carry with you and use to help you achieve success with your next move. No matter what problems you have along the way, remember that you will eventually hit a dead end if you do not keep at it. A constant state of momentum is key to success with downsizing so make sure that you keep that in mind.
