Thinking of Downsizing? 5 Proven Strategies to prepare you for what’s to come

The decision to downsize is not an easy one, especially if you home has been filled with family memories and emotional attachment.  If your home suddenly feels too big and is becoming more of  a struggle to look after or you would like you to get some extra cash in hand, then downsizing your property could open a more comfortable chapter for you in middle-to-later life. The biggest challenge? You want to walk away with as much cash as possible to pad savings, while lessening the hassles of home-ownership.  

So now that you are thinking of downsizing, what are some things you need to consider?

 

1. Evaluate and Primp Your Home’s Interior

Maybe you haven’t moved in years or have put off renovating because you didn’t know if you wanted to sell or stay? Chances are your home’s interior may look a little dated.  Don’t want to put in money for a major renovation? No problem! The fact is even low-cost upgrades can make a big impact. For instance, add new bedding and fluffy towels and for heaven’s sake, CLEAN OUT THE CLUTTER! The good news to decluttering is that it makes it easier to transition to a smaller place and you can gauge how much of your accumulated treasures you wish to keep,  giving you the ability to understand much space you will really need in your new home.

2. Considering True Costs of Condo Living

The appeal of condo living is real. After years of owning a single-family home and being the one responsible for repairs, maintenance and upkeep it’s easy to see why you would want to move into a condo with nothing on your mind but enjoying paradise.  Naples has many options of condo living so be sure to find what best suits YOUR needs.  Many condo communities have a master HOA (Home Owners Association) as well as another HOA fee.  These fees can really add up depending on what community you are in.  You need to consider what amenities you will use, what you can’t live without and what you will never use. You are buying a lifestyle so   If you put an offer on a condo you will get a copy of the condo docs and / or HOA fees, READ THEM!! You have time to get out of the contract (ask your Realtor for specific dates) if you don’t agree or can’t live with the rules.  These are important!! If you love to bbq every night on your balcony and find out in your building you aren’t allowed to bbq on your balcony well..you can see how things can get ugly.

3. Right Size Your Mortgage – Should You Make an All Cash Offer?

With money in your pocket, you can probably afford to pay cash for your new mortgage, but should you ?  Of course this is a question for your and your accountant, but there are a few things to consider.  With the 30-year loans still below 4%, financial advisors say it’s fine to have some housing debt (even if you are retired).  It’s relatively inexpensive money, it’s tax-deductible and means you don’t have all your money tied up in your home, you can also afford a higher down payment. How much housing debt is OK? Experts say if you are working, mortgage payments should top out at 28% of your gross income, however, if you are retired, you should aim closer to 15%.

4. Take on a Face-Lift

Downsizers typically want less space but not fewer amenities and upgrades.  Everyone wants the right sized home with all the upgrades, however most of the homes this size, may need a little work.  Since Naples is a second home to many, they want a place that is move-in ready.  If you are up for the challenge of a little renovation, you can typically find better deals on homes that need some cosmetic upgrades. If you would like help in locating  homes with amazing layout and structures that need some updating, we can help you with that! Just let us know what you are looking for and we can send you options.

5. Really Consider the Space You Need – Don’t Kid Yourself!

If you are contemplating a big move and have decided that downsizing is the right choice, really consider the amount of space you need. Will you not be able to part with all of our heirlooms and treasures? If your home isn’t big enough does that mean you will rent a storage space to store these? Do you want to take up a new hobby that will need its own room? Or on the flip side, do you think “well everyone will come visit” so we need a larger space only to find a year later that you didn’t have as many visitor as you thought and still don’t use those two extra rooms?  Maybe it’s smaller than you would like but right on the Gulf with amazing water views and you can live with that! Whatever your specific needs are, you need to understand the amount of space you will need to be comfortable.

Deciding what you really need requires a good long look at how you live your life daily and then prioritizing the activities and items that are already part of your actual lifestyle- not those activities or items that you want to be part of your lifestyle, but haven’t gotten around to yet.

• Take a walk through your house or apartment and evaluate everything you come across (furniture, books, etc.). Ask yourself if you’ve used it in the past year and, if so, how often? Be honest with yourself. If you think you could live well without it, out the door it should go. Make a note of it.
• Consider that most of the stuff people keep without using is a tribute to an unmet goal. The most common example is probably exercise machines that we always say we’ll use, but don’t. Then there are those books we intend to read, that table we eventually want to have dinners and brunches on, etc. We keep things around “just in case”, or hoping that their presence will eventually encourage us to use them. But let’s be realistic, if seeing that treadmill get a coating of dust hasn’t inspired you yet, what makes you think it ever will? Make room for the things you’ll actually use.
• Measure your furniture – if you aren’t planning on getting new things, will it even fit in the new master bedroom!
• For stuff that you really have a hard time getting rid of, make this agreement with yourself: Put the items in storage. If you don’t need or use them within 6 months, give, sell or throw them away.

 

Ask me how to take advantage of our buyer rebate if you sell AND buy your new home through us.  We look forward to working with you!