The Financial Side of Downsizing

There are many reasons to buy a smaller home—or to downsize from your present home—but sometimes, the idea that “less is more” is what propels homeowners to buy a smaller home. If you think moving up in life means buying a bigger home, it’s time to set the record straight.

Most American families have plenty of room to downsize their homes without cramping their style. Consider the numbers: The average single-family home in Grand Rapids, comes in at over 2,000 square feet. You may not think that’s all that big until you look back at history. The National Association of Realtors reports that the average home size in 1950 was 1,000 square feet or less—and families were bigger back then.

By those standards, today’s homeowners are living large! When asked why they might want to purchase a smaller home, 69% of homeowners who have downsized in the past said saving money was their primary reason for doing so. Moving into a smaller home may feel like a step-down, but a closer look reveals quite a few upsides: saving money, saving time, and having less clutter in your life. Downsizing could be just the fresh start you and your family need!

Check out some of the positive reasons to downsize:

• Increased cash flow: If you’re spending less on your mortgage payment, you are likely to have money left-over every month to pay off debt, save for retirement or pay off your mortgage early.
• You will Lower your utility bills.  It costs a lot less to heat or cool a smaller home.  Less square footage decreases the amount of energy used. Reducing energy is better for the environment and saves you money!
• Reduced shopping: If there is no place to put it, you’re much less likely to buy it. That means you may end up buying less clothing, food, and consumer goods.

When it comes down to it, you may find that downsizing is just what you need and it will save you big time! Downsizing might not make sense in every situation, but it’s worth taking a look at if saving money and a simpler life are what you are after.

If you’re curious about whether downsizing your home could change your life for the better, contact A&J Realty Partners to show you how much your home is worth. Giving you the information you need to decide what’s best for you and your budget. We’re here to help you fulfill your dreams no matter the size!