Downsizing, or swapping your current home for something a bit smaller, could help you cut costs, prepare for the future or otherwise get the most out of your home. However, like any real estate transaction, scaling down on space is a weighty decision. If you’ve ever considered cutting back on square footage and one or more of these five signs resonate with you, it may be time to explore some downsized digs.
Your costs are too high
Perhaps the most important factor, if you’re having trouble affording your current home or the potential cash upon resale is well worth losing that guest room, it may be time to downsize. When it comes to homeownership, budget is king. While finances are personal and the amount that you feel comfortable spending on housing will be unique, if you can’t entirely afford your current home expenses (Forbes, 2020), it’s a sign.
You have plenty of unused space
Whether your children have recently flown the nest or you’re just not hosting as much as you used to, if you have a selection of spare rooms gathering dust, it may be time to downsize. Unused space costs an average of $123 per square foot (Realtor.com, 2019), which adds up fast. Relocating to something a bit smaller could be lucrative and much more practical.
You’re often away from home
Perhaps you frequently stay with family or travel for work. If you’re rarely spending time at home anyway, minimizing that expense could prove prudent. Instead of coming home to a big, empty two-story, consider a charming condo (Nerdwallet, 2021), tiny house or other petite abode.
You’re planning ahead
As you or your family grow older, multiple flights of stairs and extra rooms to maintain may not make much sense. Empty nesters, retirees and seniors often choose to downsize accordingly (Investopedia, 2019). If you’re approaching that age range, or simply planning ahead for your forever home, consider downsizing to something you’ll find manageable even at 80.
The maintenance is too much
If you’re having trouble maintaining a massive yard, tons of empty rooms, or multiple acres, it may be time to tackle a smaller project. Thorough and regular home maintenance can actually increase resale value, so you don’t want to neglect these tasks (Forbes, 2020). Relocating to a smaller, more manageable space, where you can focus on care and upkeep, will help ease your home maintenance overwhelm and could even boost your home equity over time.
Whether you’re struggling with yard upkeep or are adjusting to an empty nest, opting for something smaller can be a lucrative and satisfying experience. You deserve to get the most out of your home, whatever it’s size. If you decide that downsizing is right for you, reacquaint yourself with the homebuying process and get excited to start scaling back.
Published on May 10, 2021
