downsizing

There is a new housing boom and it’s coming from baby boomers who are selling their homes and downsizing into smaller ones. It’s a good thing for new homeowners and those upsizing as well.

As the children of baby boomers leave home for college and beyond, their parents are finding that their big homes are just a bit too big. They are also finding that they are facing a future that could mean lower incomes and inability to make larger payments on things like utilities, real estate taxes and such. The answer? Sell that big home that has the higher utilities and taxes. Use the equity as a nest egg. That also means that they will be looking for a smaller home.

That’s good news for owners of smaller homes who want to upsize for two reasons

The first is that there will be competition for their smaller homes: first time buyers and the downsizing boomers. Competition means possible bidding wars and higher prices. Those higher sales mean more money to purchase the bigger home with less debt. That’s always good news. The second reason is the higher chance of getting a cash sale. It means a faster settlement and less red tape for both sides.

Bigger homes and upsizing families

Then, of course, there is the homes that the boomers are vacating. They are the bigger homes that the upsizing families are looking for. With more and more of them available it will mean better prices for those buying. Yet another plus for those smaller home owners.

For baby boomers it means buying a home without the need for a mortgage, smaller utility bills, lower real estate taxes and costs. It could also mean adding money into the retirement sources of income.

So this housing boom of sorts is a win win for both baby boomers and the owners of the smaller homes they want.

Are you finding that your home is too big? Your McMansion is becoming too much to handle? When to sell and downsize maybe now, but how do you know? There are as many reasons to downsize as there are people. Families change, children grow up and move out. Financial situations change. Having as big a house as the rest of your friends becomes less important. Whatever the reasons, when you feel that your home is just too much for you; that maybe the “when to sell” and downsize.

Think about your family situation when you bought your McMansion. The kids were young and you needed the space. Kids grow, graduate and leave for college or move out on their own. Do you really still need a 4 or 5 bedroom home with just two people? Most people don’t want that much house to take care of after the kids leave. Downsizing now maybe the answer for you.

What if your financial situation changed? That McMansion may have been within your budget when you bought it, but sometimes things change. People change or lose jobs. Maybe you bought it before the economy tanked. You’ve held on this long, but now it’s time to throw in the towel and move on. The market is changing and even if you are overextended, you won’t sell at or at as much of a loss as you would have just a few years ago. You may even sell at a profit.

Being sure is important. You can do this by contacting a realtor and talking with them about things like what type of market is predominant in your area. If it’s a sellers’ market, more the better. Ask about the value of your home. You may be surprised to find that it is worth more now than it was even this time last year. You can also find out what smaller homes are selling for in your area. What if you found that you could move into something smaller and have a much smaller mortgage, or even not have one at all?

If you find yourself in a place where you think you may want to downsize, call a realtor and talk about your options. It may just help you make your decision.

The New Housing Boom – Baby Boomers Are Selling Their Big Homes And Downsizing

Downsizing Your McMansion – When to Sell

The Deb Ward Team