Wondering if it’s time to downsize? Here are five reasons why it could make sense.
With the combination of an aging population and a housing market that favors sellers, it’s no surprise that many people, particularly those nearing or in retirement, have been selling their homes and moving into smaller places. In fact, the National Association of REALTORS (NAR) reported that more than half the homes sold in the U.S. in 2020 were sold by people aged 55 or older.
Downsizing can be a great move as you get older and your needs for space decrease. In this article we’ll discuss five reasons why moving to a smaller home could be a good idea, regardless of your age.
1. You may be able to buy your next home with cash, no mortgage needed.
Depending on the value of your current, larger home, you might be able to walk away from the sale with enough cash to buy your next home without the need to borrow any money. According to the NAR, in 2020, sellers aged 65 to 73 sold their homes at a median price of $289,000 and bought their next home for a median price of $279,500. While median prices continue to increase in many parts of Minnesota, these numbers give you a sense for how this works. Your bigger home might be worth more than the smaller home you buy, so you could use the proceeds from the sale to pay for the smaller home outright.
2. Reduce upkeep and add time to your days.
Moving to a smaller property usually means you have to spend less time on cleaning on maintenance. That means more time to do the things you actually like to do, whether it’s golf, seeing your family, or just relaxing.
3. Moving closer to the people who matter most.
According the NAR, 28 percent of sellers age 65 to 73 reporting that their number one reason for downsizing was to buy a smaller place that was closer to family or friends. It makes sense; perhaps the children you raised have since gotten jobs in other cities. You could sell your big house and find a smaller one nearer to your kids. Being in close proximity to family is great for many reasons, not the least of which is that as you get a little older you’ll have a loved one nearby who you can rely on to help you.
4. Planning for the future.
Many buyers over the age of 50 purchase senior-friendly homes or units in planned communities. This shows that downsizing isn’t just about doing something for the “now,” but it’s also a way to maintain your future independence even as you age.
Moving into a smaller home with, for example, a single-level layout and larger rooms and wider hallways offers many benefits. Some of these are: more room for guests, providing wheelchair accessibility if needed in the future, and making your smaller face feel bigger than it is.
5. Freedom and flexibility.
Many downsizers, especially those 65 and older, see downsizing as a change to regain the flexibility they didn’t have while pursuing a career and raising a family. In retirement and with no kids at home, you are free to buy the home that suits you. It could be a place on the lake, a condo in the city or something else altogether, but the point is that downsizing offers a chance for you to call the shots as far as what you want your living situation to be.
Ready to talk about downsizing?
If downsizing is on your mind, the Realtors here at Servion Realty are to help you make it happed. Get in touch with one of our agents to find out more about today’s seller’s market and for advice on how to go forward with downsizing. We have agents in the Twin Cities and Duluth/Superior.