Is It Time to Downsize? Ask Yourself These 4 Questions First

Downsizing House

 

If you’ve reached the time of life where you are contemplating downsizing your home, the first question to ask, according to this Realto.com post, is what kind of lifestyle do you want after downsizing? By defining how you want to live, you can narrow your search and focus on housing that will meet those requirements.

 

For example, if you want to escape the bluster of winter and relax on a beach, local climate conditions and geography will drive your hunt. Or, if you like social activities, you would seek active adult communities where you can interact with like-minded people.

 

The next step is to consider the financials by asking what will you budget  look like?  After that, ask yourself if you have enough equity in your home to make a profit.  If you have enough equity, you can buy your next home outright or bring a sizable down payment on closing day.

 

Finally, ask if you will be able to find another home that’s affordable in a seller’s market.  For those with some financial clout,  realtor Debra Whitfield recommends using an equity line of credit on your current home or a home equity conversion mortgage to buy your next home, before selling your current property.  That gives you time to find a suitable property instead of being rushed to select whatever happens to be on the market after your house is sold.  To read more click here.