For many seniors the idea of downsizing and moving into a smaller home can be daunting and warrants a lot of consideration before taking the leap.
Whether the property is too much to manage, the kids are grown and gone, you’re looking to travel, or you simply want a smaller living space, it is important for home owners to do their homework before making any final decisions.
“There is so much for a home owner to consider when they are thinking about downsizing,” said Cathy Rocca. “It’s important to look at the decision from all angles and to utilize all of the resources that are available.”
Below are some considerations that might help in the decision making process.
The market: What are the real estate trends in your area? Will you be able to make money on the sale of your home? Working with a seasoned realtor will give you a good idea of what the possible sale of your home will look like.
Personal finances: Go over your finances thoroughly. If you’re on a retirement or fixed income and your savings aren’t enough to give you security, then the profit from the sale of your home could give you a bit of a nest egg.
Property payments: Depending on where you live, your property taxes might be quite high, taking a substantial amount out of your budget or savings. Assess whether or not those expenses would be reduced if you were in a different neighbourhood or on a smaller lot. A realtor will be able to give you some insight into this.
Don’t be hasty: Take assurance from the fact that you can take your time in figuring this out. Meet with your realtor to get a sense of the work you would need to do, and to get a better understanding of what you need from the sale of your home and in the purchase of your new place.