Downsizing can save you both stress and money in the future. Less space means less upkeep, and it also means a smaller financial burden for you going forward into retirement. Downsizing can be a difficult process, though, especially if you’re not prepared for the financial or emotional burden of moving. Take Bill and Dorothy, for example. High year-round temperatures and the need for a property that is easier to maintain inspired them to downsize. The decision wasn’t easy: 44 years in their home and strong friendships in their area made the process of downsizing to the right home important. The house needed to meet all of their criteria. Enter Stewart Walowitz, a top-rated real estate agent in Scottsdale, Arizona, who helped them move into a home in a higher area where temperatures aren’t so extreme. Bill and Dorothy were able to sell their home quickly for a good price, and they still keep in touch with Stewart. Bill and Dorothy knew that downsizing was the right move for them, which made the process feel seamless and simple. If your motivation for downsizing is clear (or even if it isn’t) to you, we’ll help you answer the question, Should I downsize my home? so that you can have a similar experience. The amount left on your mortgage should be one of the largest deciding factors for whether or not you should downsize. Think of it this way: as you inch closer towards retirement, you want to cut debt as much as possible since you won’t have an income. If you’re not close to paying off your mortgage and you’re getting close to the average age of retirement, downsizing is a great option. There is a caveat, though. A smaller house doesn’t necessarily mean a cheaper house, especially in cities like Seattle, where housing costs have skyrocketed. This makes downsizing trickier because not only do you have to look for a smaller home that’s less costly, but you also have to make sure you sell your home for a price that’s higher than the new home. If you can find a home for a decent price and the sale of your current home outweighs that — a top real estate agent can help you figure that out, by the way — then you have the potential to save a lot of money and even make money. Take Richard and Mary G., a retired couple from Houston, for example. They lived in their five-bedroom home for decades before they made the decision to downsize their home. The neighborhood where they lived was growing and when they sold their already paid-off house, they made a profit. Then they used that money to purchase a smaller home in Colorado up front and even managed to pocket some extra money for savings.Should I Downsize My Home? Answer 5 Questions
1. How high are your mortgage payments?
