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There are many reasons why you may be considering downsizing to a smaller home. You have resided in your current home for an extended period of time and have many memories there. Perhaps you raised your family in the home, and now due to a myriad of reasons, you are now going to consider downsizing.
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We will take a look at the reasons why homeowners decide to downsize a home. And we discuss the benefits of a new home which doesn't have as many responsibilities as a larger home.
Divorce
If you are in the process of divorce or a break up from a long term relationship, you are likely to downsize. While you may want to stay in the marital home, that may not be reasonable given your new financial situation. Once you decide to move to a smaller home or a condo when a relationship ends, means that you won't be overextending your finances which you could later regret. There are steps to take when purchasing a new home after a divorce.
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The most important first step is to meet with your lender and ensure your credit stayed intact throughout the divorce. Sometimes bills don't get paid and that can have a negative impact on your credit. Once you meet with a lender, you will know what you will be able to afford and can begin shopping at that price point.
When Your Children Decide to Move Out
Once your children have graduated from high school and they may move out to attend college. It is not uncommon for them to come back during winter and spring break, so generally speaking, families don't downsize until their kids graduate from college if you can financially afford it. Sometimes until the kids are able to get a well-paying job, they may stay with their parents until they can afford to pay the rent and the associated expenses of living on your own.
Once they graduate and are beginning lives of their own, then it may be a good time to consider downsizing. Perhaps your children took a job out of the area, and you want to move to be closer to them. Especially if they are getting married and have young families, it is always nice to be close to family. When you searching for a new neighborhood in a new city, be sure to check out ways to pick the best neighborhood to live in.
Reducing Your Maintenance
If you have been living in a large single-family home, there may be lots of maintenance associated with it. Perhaps it is an older home, and once a month you have to call the plumber to come out to unclog your drains. Or perhaps you have a roof that needs to be replaced, and you do not have the funds to replace it. Deferring maintenance will overall erode the condition of the property, and the overall value when you sell it. If you can, maintain it to obtain the highest and best price on your home when you sell it.
Finding a newer, smaller home may be just what you need when you downsize. Consider purchasing a condo that takes care of the exterior maintenance and generally the roof of the structure. Usually, condo owners are responsible for what is inside the walls of the condo, not the exterior. The HOA takes care of that. There are HOA fees of course, and you will need to discuss that amount with the lender.
Other factors to consider with an older home is that is is most likely not energy efficient. You may have exorbitant utility bills to either cool or heat the home. When searching for a new home, look for energy-efficient appliances and green features which overall will reduce your carbon footprint.
Final Thoughts
When you are considering the reasons to downsize from a larger home to a smaller home, there are many factors to take into account. There can be many benefits of a smaller, more energy-efficient home that is more affordable.