Is it a good idea to downsize your home?

If done right, reducing staff may still be a good idea. Not only will you be left with more money, but it may also simplify your life and reduce your home's maintenance and utility costs for years to come. To achieve that happy outcome, you must avoid the unexpected difficulties that make downsizing so risky. Reducing the size of your home has many advantages.

First of all, if you've been in your current home for a while, it's likely that its value has increased and that you're close to paying off your mortgage, if you haven't paid it in full. Buying a smaller, cheaper property will give you a lot of leftover capital, to use for whatever you want. It also means that you can buy your new home as a cash buyer, giving you more options, a faster chain and the ability to live without mortgages. Reducing to a smaller home means less maintenance, lower bills and more time to do the things you love.

It's an exercise to save money and time. If you're going to reduce your staff in the future, it means you can choose a property that better meets your needs as you age. Rather than having to deal with stairs, limited accessibility, or a huge garden that requires maintenance, you can choose a property that works for you. It's safe to say that homeowners don't usually daydream about buying a smaller home.

But minimal maintenance is definitely an advantage of not living in a big way. After all, the time and money you used to spend on cleaning and maintenance can now be spent on fun things. That's why some people see downsizing as a step forward, not a step backwards. If you think there's less space, you're not alone.

After all, an adult who usually goes to college isn't too close, but what about a son or daughter (or even another family member) who might need to move home for other reasons? Would you like to share a bedroom and bathroom with them? When looking for a new home, make sure it meets your physical and emotional needs, as well as your financial needs. Just because you can find a bargain doesn't mean the house is worth it. After all, if you're going to make the effort to move, you have to do it right. Since there are many reasons to reduce the size of your home, we've created a guide to help you learn how to reduce the size of your home efficiently and live clutter-free.

We've put together more than 10 tips on how to reduce the size of your home, plus specific tips for older people looking to downsize and maintain a tidy lifestyle after moving. You should start the staff reduction process as soon as possible to have time to properly tidy up your home without feeling overwhelmed. A general rule of thumb is that you'll want to start at least 3 months before you plan to move, but honestly, the sooner the better. Be very picky about new purchases to avoid clutter.

Some people live by the rule that if something new enters their home, something else must disappear. This will help to minimize clutter and prevent you from spending unnecessarily. If you're really undecided about a purchase or have bad spending habits, give yourself a 48-hour reflection period to see if you really need the item or if you've just been caught up in the thrill of an impulse purchase. Victoria Araj is a section editor at Rocket Mortgage and held positions in mortgage banking, public relations and more during her more than 15 years with the company.

He has a bachelor's degree in journalism with an emphasis in political science from Michigan State University and a master's degree in public administration from the University of Michigan. Refinancing: 11-minute read Rocket Mortgage, 1050 Woodward Ave. You can also save money on maintenance and repairs with a smaller home, assuming you reduce its size to a property that is just as up-to-date and in just as good condition. Plus, you'll generally spend less to heat and cool a smaller home, so if you've had to deal with sky-high utility bills, downsizing could help you reduce them.

There are many reasons to buy a smaller home or reduce the size of your current home, but sometimes the idea that less is more is what drives homeowners to buy a smaller home. When asked why they would want to buy a smaller home, 69% of homeowners who had downsized in the past said that saving money was their main reason for doing so. But of course, these reasons may vary. While it's true that we live in a society that often holds that bigger is better, it may be worth changing your mind and considering whether a smaller house would actually suit you and fit your lifestyle.

The financial advantage of downsizing, whether it's a hot, cold, or neutral market, makes little difference overall. But it could be argued that reducing staff in a seller's market would give the owner more cash available after the closure. However, the compensation could be a higher selling price for the smaller home. The best of both worlds would be to sell in a seller's market and buy somewhere else in the buyer's market.

Either way, a seller could end up owning a smaller, cleaner home, so choose markets. However, keep in mind that you can't really time the market. Salespeople often ask if they need two agents to buy and sell. First, consider similar sales and the prices of your home.

Second, are you located in a neighborhood where local agents reject agents from outside the area? It's not supposed to happen, but it does happen. But if your home is easy to price and the agent has contacts in that area, it doesn't really matter where the agent is located. Sometimes agents negotiate the commission if they manage two transactions. Should you sell first and then buy, or buy first and then sell? It's generally best to sell your current home before buying a new home.

The reason is that it keeps your emotions under control. However, some markets will dictate that it is better to buy before selling. Discuss this strategy with your real estate agent. Unless you have the money to buy your new home directly, the reduction in staff may not be worth it financially.

Mortgage rates have risen by more than 2.5 percentage points since the beginning of the year, and financing a home purchase is now significantly more expensive than it was a few months ago. No matter your age, you should make sure your house is clean, maintained and paid for, whether you do the work yourself or pay someone else to do it. Fixing broken shingles on a roof and ensuring that a large patio is constantly cut can be tiring. If you've reached a stage where you're feeling overwhelmed or you just think you could use your time or money better, it's time to go smaller.

If you can't remember the last time you entered your guest room, except when it was dusted off, you should consider reducing your staff. If these vacant rooms only collect dust, they can be a waste. Unused rooms still end up costing money not only in property taxes and eventually in maintenance (leaky ceilings, peeling paint, etc. Helen Guajrado also reports that financial problems are another reason why some consider reducing staff in old age.

The trick to successfully reducing staff for financial reasons is not to wait too long. If you're already using your savings to pay for your home expenses every month, chances are you shouldn't be in that house. You need your retirement savings, not to maintain a lifestyle you had when you earned a higher salary. This is a signal that can be applied to any homeowner, not just to those who are considering downsizing their staff at an older age.

For some, they bought a house they could afford, but circumstances changed and it's now harder to pay for utilities. You shouldn't have to work hard every month to get the money to pay for your house. Stress from a lack of funds can compromise your mental, emotional and physical health. Your best bet is to find a housing payment that you can comfortably pay.

If the distance from your family is what prevents you from watching your grandchildren's soccer games or ballet recitals, consider getting closer. Reducing yourself to a smaller house near your family will allow you to have lunch with your child or read to your grandchild while you go to sleep. These moments just aren't the same when you only see them a couple of times a year because they live far away from each other. Even if you don't decide to move to the same city as your family, owning a smaller home, such as a condominium, with less maintenance will make traveling much easier and more feasible.

If any of these signs apply to you, it may be time to consider buying a smaller, more maintainable home. Contact a KW San Antonio real estate agent for help advertising your current home or finding a new one today. Different ideas and tips on how to welcome new neighbors, including neighborhood welcome cards, letters, gift ideas and free welcome printables. If you think that any step in the reduction and relocation processes is above capacity or you don't have time, seek help.

Downsizing to a smaller home can be a real opportunity for those looking to save money and enjoy the capital freed up from the sale of their home. Scott, who co-owns a company called Asset Advisers and has a commercial real estate consulting business, says he won't regret reducing his staff if his daughter moves, but it's a good warning to keep in mind. Or you may decide to downsize before then so you can spend less on housing and spend more money on other goals, such as retirement or travel. People who are going through a divorce may no longer need a large home without a full-time family, and it is cheaper for them to downsize to a more affordable home.

If you plan ahead and reduce your workforce five to 10 years before you retire, you can save thousands of dollars each year. As he says, “staff reduction could be the right path for older people who want to live their golden years with more money in the bank, but not always. In addition to getting ahead of the staff reduction process, you can also keep your home free of clutter and things you no longer need. If you're reducing your staff due to a divorce or a change in your financial circumstances, it can be frustrating to have to deal with a smaller space than you're used to.

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