With housing prices sitting around all-time highs, it is an excellent time for many people to consider selling. The out-of-control market has stabilized in the last few weeks, which is fantastic news for downsizers as more options become available. Some homeowners wanted to sell, but hesitated because of the insecure market. Now, there is a little more breathing room. The decision to move depends on your situation and the lifestyle you want to enjoy in the next few years.
What are some of the questions you should be asking yourself before you downsize?
1. Am I Moving For the Right Reasons?
The market may be hot, but you should only take the next step if it is right for you. How does the thought of a smaller house make you feel? If you feel like you will be happier because you will have less work to do and more time to enjoy your life, then downsizing is likely a wise decision. On the other hand, if the thought makes you feel cramped, then you may not be ready. When making your decision, always remember that it is your choice. No one should pressure you into something that you’re not comfortable with.
A big part of feeling ready to move is understanding all of your options. Here are some other articles that can help you when the time is right:
Should You Sell Your House As Is?
Is It Better To Downsize Before Retirement?
Creating a House Hunting Checklist
2. Can I Age in Place?
Managing a large property can be a lot of work. There is grass to cut, snow to shovel, and repairs to make. Do you feel up to the challenges of remaining in your home for the foreseeable future? If so, you might decide to hold off for the time being. When the chores become too much to bear, you can consider your options. Selling the home is one path you can take. Depending on your budget, you may also consider bringing in live-in help so you can age in place.
3. Does the House Feel Too Big?
One of the unmistakable signs that it’s time to downsize is when you realize that there are rooms in the house that you never use. Unused bedrooms and finished basements may sit empty or fill up with clutter that you will have to go through and organize at some point. A smaller house or condo will allow you enough living space without wasted areas that you don’t need.
4. Where Do You Want to Live?
How convenient is your location where you are currently living? Many people prefer not to have to drive everywhere, especially as traffic becomes more congested in different parts of the city. Moving to a different neighbourhood doesn’t necessarily mean less space. It could be about living in a more convenient location where more amenities lie within easy walking distance.
5. Do You Want to Be Close To Family Members?
Many people choose to downsize because they want to be closer to their loved ones. The question becomes, “how close?” If a family member also has a large property, you could consider building a secondary suite or even a separate coach house. Both options provide you with your own living space and privacy, but your relatives are there when you need them. Another option is to purchase a smaller house or condo that is within walking distance or on a transit route.
6. Should You Sell Your House First or Buy First?
When to sell your house is one of the most challenging decisions to make. Both options have advantages and disadvantages depending on the current real estate market. If you sell first, you’ll know exactly how much you have to budget for your new home. If you buy first, you can take your time finding the right place for you.
Do you need help deciding what to do first? We have a whole article on the topic right here.
7. What Kind of Lifestyle Do You Want?
Owning a large house isn’t just a lot of work. It can be expensive. The larger your home, the more everything costs. Your utility bills are higher. You pay higher property taxes. Repair bills are more expensive. Even if you can comfortably afford your monthly expenses, you may decide that your money is better invested elsewhere. Selling your large house in favour of a smaller one frees up your cash flow and provides you with more options in your life. You can invest the difference, return to school, treat yourself to a fabulous vacation, or just enjoy life knowing you have a financial cushion to see you through.
8. What Type of Home is Right For You?
Downsizing means different things to different people. Some want everything they have currently, just smaller. A smaller house is less work but still provides a backyard to entertain in. For others, the best solution is a townhouse that has a property management team to take care of it. Or you may prefer the relaxed, low-maintenance lifestyle that a condo provides.
9. Where Should You Start?
Once you’ve made the decision, it’s time to create a plan of action. The sooner you begin preparing, the less stress you will face when securing your new home. Start with smaller steps like sorting through your belongings and deciding what to keep or donate.
Family members can help by helping you search for properties and scouting out new neighbourhoods that you will love.
The secret to a smooth transition is to work with a real estate agent who can guide you through every step of selling your current house and finding your new forever home. We’d love to help you. You can book a free, no-obligation consultation with us right here.
