If you're one of the many homeowners who are living in a home that's just too big, you may be considering downsizing into a smaller home. Reasons for downsizing include convenience, health concerns, financial or just the want to simplify. A recent TD Ameritrade survey reports that 42% of pre-retirees are likely to downsize if they have not already done so. Of those, 25% are planning to move to a warmer climate and 17% are planning to move closer to loved ones. Before you make the move, here are four things you should consider before deciding if downsizing is right for you.
1. Does it make financial sense? Depending on your current mortgage, the area you plan to move to, and the value of your current home, you must decide if the move will make sense financially. Work with your financial adviser and Realtor to run the numbers.
2. Will your lifestyle change? When you move, will you continue in your current hobbies? Is living on, or near, a golf course a priority? Do you want to live near hiking trails, or shopping, or doctors? Will moving to a new neighborhood have positive or negative effects on your lifestyle?
3. How much space do you need? If you're empty nesters, there may be an extra bedroom or two in your home you no longer use. Consider your hobbies and how often you host guests in your home when considering a move.
4. Will you make home improvements? Are you willing to take on home improvements, or do you want a move-in ready home? Consider how much time and money you're willing to spend on the new property.
The Reno area has many excellent neighborhoods for homeowners who would like to downsize. If you would like to learn about your housing options in Reno-Sparks, please contact Sallan Real Estate at 775-453-4568.