NuNu Mike'S Blogsite

Maybe it’s just me.  Have thoughts like these ever crossed your mind?

• Do they make a riding vacuum cleaner?
• I hate cleaning the gutters.  I’m scared of ladders.  What was I thinking?
• I hate mowing all this grass.
• If I move my closet to one of the bedrooms downstairs, I don’t need put another lightbulb in the closet upstairs.
• When was the last time I used that pool table?  or the dining room table?

If so, keep reading. I’ve listed some things to consider before downsizing your home.

Once the kids have left the nest, many folks my age (50-ish) begin to consider housing options, such as moving to “someplace new” or “downsizing” their current homes.  Downsizing to a smaller home can be beneficial for a variety of reasons, including less home to clean and maintain, more affordable utility bills and lower property taxes. The decision to downsize is rarely black and white, and both men and women alike often struggle with the decision.

Perhaps the most difficult part of the decision of whether or not to downsize to a smaller home include the sentimental attachment many homeowners, especially those with children, have to their homes.  The home might be too big for current needs, but it also was the same place where your son took his first steps, and where your daughter lost her first tooth.  Saying goodbye to a place that was home to so many memories isn’t easy.  But, there’s more than just sentimental value to consider when deciding whether or not to downsize your home after the kids have grown up and moved out.

• Personal financesYour financial situation merits significant consideration when deciding if the time is right to downsize your home.  If your retirement nest egg is not as substantial as you would like it to be, then it would seem as though downsizing to a smaller, more affordable home is a great opportunity for you to be start catching up on your retirement savings.  But that’s only true if your new home won’t incur any additional expenses that are already taken care of in your current home.  For example, your current home may be fully furnished, while a new, smaller home may require you to buy all new furniture because your existing item simply won’t fit.  The cost of such furnishings can be considerable.  If you plan to move into a condominium, you can expect to pay monthly homeowner/association fees, which can be substantial.  So while the condo itself might be smaller, the additional expenses associated with the property may end up making the smaller home more expensive and prevent you from saving more money for retirement.
• SpaceEverything costs. How much space do you really need?  Once the kids have moved out, couples may feel like all of that extra space is going to waste.  But, that can be a knee-jerk reaction, and upon more thorough examination of the space and your needs you may just find that you can put all of that extra square footage to good use after all.  If you have always wanted your own art studio, then now might be the perfect time to make dream into a reality.  Always wanted a room devoted to home theater?  Get to work on converting your basement from an all-purpose game room to your own private movie theater.  If, after considering the space in your home, you find the extra square footage really not appropriate for your future plans, or is just too much to upkeep, then you would no doubt like a cozier, more appropriate, home that’s less of a responsibility to maintain. 
• Real Estate MarketThere are seller’s markets and buyer’s markets. Ideally, you would like to sell your home in a seller’s market.  But, keep in mind that without proper planning, that might be the same market in which you hope to buy a new home.  The nature of the real estate market depends upon a host of factors, including geography and timing.  If the city or town where you currently live is in the midst of the seller’s market and you are planning on moving to a location where buyers have the upper hand, then now might be a great time to move. But, if you currently live in a buyer’s market and hope to move to a seller’s market, you may end up paying a steep price, even when downsizing to a smaller home.  Things may even themselves out if you want to downsize to a smaller home your current community, but do your homework nonetheless, researching the time of year when you’re most likely to get the most for your home and find the best deal on your next place.  Unless there are substantial mitigating factors, you have an advantage when downsizing. Don’t rush to move out of your current home and into your next one.  Take ample time to make the real estate market work for them.

Adapted slightly from original article printed in “PrimeTime” (an advertising supplement to the Daily Press and The Virginia Gazette) dated October, 2014.