Pros and Cons of Downsizing your Home

Advantages of Downsizing your Home

Disadvantages of Downsizing your Home

Are you looking to downsize your home? We buy houses Pennsylvania and will give you the best deal possible. However, before downsizing, you should consider the following disadvantages:

• Mortgage Costs – If your current home is paid off, you might be able to sell it and buy a new home with the profits. Depending on the sale price of your house, you might need to get a mortgage. Mortgages are additional expenses you should consider.

• Cost of Buying or Selling Home – On average, selling a home costs more than $31 000. There are costs of preparing a home for sale, such as new paint or flowing. You must also pay real estate agents’ commissions, closing fees, and taxes. When buying a downsized home, be prepared to pay closing costs of about 2 to 5% of the home’s purchase price.

• Moving Expenses – there is the cost of hiring movers. This cost can add up, and you might want new décor or furniture for the new place.

• Potential Fees – Moving to a senior living community or condo complex could mean Homeowners Association (HOA) fees, maintenance fees, and others you don’t have at home.

• Possible Storage Costs – When downsizing, some of the items you had in your home may not fit in the new home. You may have to buy storage for the items.

• Limited Work-at-Home Options - Working remotely opens up a more comprehensive range of higher-paying jobs than anyone can imagine. A larger home with dedicated office space can make working remotely easier, potentially boosting income. Working from home, however, can be difficult in a house with a small space.

• Lack of Extra Space – The extra rooms in a house can be beneficial. They can be rented out to make some extra income. That cannot be done in a smaller place.

• Lifestyle Creep – Moving from a home in a quiet suburb to a condo in a busy urban area is a dream for many. However, access to shopping, restaurants, and entertainment can tempt you to overspend, and the new lifestyle can eat your savings.

• Renter Risks - Planning to sell your home and rent instead of buying? Keep in mind:
• You'll lose any mortgage tax deduction.
• You won't build equity.
• Rent increases could eventually price you out of your rental.
  

Factors to Consider Before Downsizing

Most people who downsize are heading into retirement or are already retired.

Preparing for retirement at any age is challenging and downright scary, especially in an unpredictable economy, with near-historically low-interest rates and a looming recession. When preparing for retirement, the best approach is first to create your vision, priorities, and goals and then assess how much you will really need. Avoid getting caught up in misinformation. Keep in mind these common myths, and plan your retirement with a hefty dose of reality.

We buy houses fast Allentown, and we will help you get the best deal for your home, making it a better downsize experience.

Give us a call anytime at 484-484-0971 or fill out this quick form to get started today!