Is It Time To Buy a Smaller Home?

Is It Time To Buy a Smaller Home?

Lifestyle changes and events can have a major impact on what you need from your home. Retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, such as traveling, visiting with loved ones, or taking on new hobbies. But what does that mean for your home?

If you resonate with that, then you’re likely looking for ways to focus more on the important things in your life. This could mean downsizing is in your future. A recent article from The Balance talks about why it could be a great option, saying:

“There are many reasons to buy a smaller home—or to downsize from your present home—but sometimes, the idea that “less is more” is what propels homeowners to buy a smaller home.”

You Can Find the Right Home for Your Needs

The 2022 Home Buyers and Sellers Generational Trends from the National Association of Realtors (NAR) provides more information on why people of retirement age choose to move. It shows the need for a smaller home and/or a home without stairs and the desire to be closer to loved ones. Retirement itself as three of the top reasons homebuyers over the age of 55 make a move.

If you’re now or soon to be in this group, changing priorities may be top of mind for you today. After all, as your lifestyle changes, what you need in your home likely changes, too.

Plus, moving into a smaller home can open your schedule up even more. When you downsize, you can spend less time maintaining your home and more time with the people you love and exploring newfound interests and hobbies. Downsizing can lead to less stress and increased happiness.

Your Equity Can Make a Big Impact When You Downsize

Your home euqity plays a big role when you sell your existing house and move. It could be a great tool to use to help you downsize. Washington state homeowners have seen approximately $96,000 in equity over the past 12 months. Dr. Frank Nothaft, Chief Economist at CoreLogic, explains how important price appreciation and equity gains are for existing homeowners:

“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth, . . . For low- and moderate-income homeowners, home equity has historically been a major source of wealth.”

As home prices rise, so does your equity. So, you may have more equity than you realize due to the record levels of home price appreciation over this past year. Those equity gains could allow you to make a larger down payment or even allow you to buy your next home with cash. And putting more money down can lead to a smaller monthly mortgage payment, which can give you greater financial freedom. It can also be a significant help in navigating today’s housing market, since offering more money up front could help your offer stand out. I also have additional strategies that will make your offer stand out.

Whatever your homeownership goals are, I am here to help you find the best option for your situation. I would be honored to help you sell your current home and guide you as you buy your next one and enter this new chapter of life.

Bottom Line

If you’ve recently retired or plan to soon, your needs are likely changing. In today’s sellers market, now may be the perfect time to downsize. Call me anytime to get a better sense of how to find a home that matches your situation.

Work With Bill

Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.

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