Credit – https://pixabay.com/photos/house-thatched-cottage-dune-4028391/
While downsizing is often associated with the later years of life, many people look to do it at the midpoint of their lives and earlier. While there are many contributing factors, pros, and cons to consider, downsizing is a crossroads that all real estate owners inevitably come to for a myriad of reasons. So, let’s look at some of the main driving forces that influence people to downsize.
Many real estate owners use the internet to seek out dream homes and properties, and the current wealth of choice has influenced millions of people to seek opinions online or pack their bags and move to a smaller location. However, the internet can be a double-edged sword, given that it opens up the market to a much broader number of people, and there are increasing numbers of people struggling to get their foot on the real estate ladder.
The Practicality Of Moving Home
Some people put off the idea of downsizing because of the headache that comes with it. Selling up and moving isn’t easy, from the physical labor of shifting your cherished possessions to the poker-like negotiations you have to enter when deciding on a selling price to a prospective buyer or trying to whittle down the real estate owner selling to you—including when to go all in or when to bluff. Make sure you have advice during these negotiations and note the game involved.
This isn’t hyperbole; if someone knows how to play poker, they are more likely to understand just how much gesturing and psychology are involved in selling your real estate – there are plenty of similarities to draw between the two, and there are ways these two concepts are linked. We recommend getting working on your poker face if you’re looking to sell up and get a good price for your real estate.
Finding The Right Location
Downsizing can sound like a good idea, but finding a real estate to downsize to can be another matter altogether. Some real estate owners wait years before their perfect first home comes to market, and the same can be said for those looking to downsize. Some decide the grass isn’t always greener once they reach this crossroads and remain where they are.
Cashing In On Equity
It’s a seller’s market – homeowners who have been on the real estate ladder for 40 years, depending on where they live, could be sitting on a significant chunk of profit. For instance, house prices in the UK have increased by 1,145% since the early 1980s. Despite a price dip last year – the market sees far more demand than supply.
The primary factor behind this is the lack of new homes being built. This economic imbalance has meant that cashing in on equity is undoubtedly the main benefit of deciding to downsize.
While we won’t get into the specifics of that social hand grenade of a topic today, cashing in on the surging prices is one of the biggest considerations in downsizing. For those who bought their homes decades ago and raised their families who have since moved out, many are sitting in large homes with bedrooms they don’t need, in space they don’t need anymore.
Clearing tens of thousands of dollars worth of profit and downsizing isn’t a bad idea if you look at it from this angle. With many new, emerging real-estate firms itching to facilitate the deal, you won’t have much of a problem getting offers on your house if it’s in a sought-after location.
Of course, home ownership comes with sentimentality and memories – as well as the familiarity and the routine of being engrained in your neighborhood. Although social factors again have meant that the idea of owning a home for aspiring young real estate owners is looking more of a distant memory, with almost half of Gen Z and Millennials in the US still living with their parents, downsizing doesn’t have to be a case of going to a tiny apartment, just something that is more manageable and cheaper to maintain.
Saving On Costs
Downsizing comes with lower bills, maintenance, and less space to heat or worry about. If you want to downsize to cash in on equity, you’ll kill two birds with one stone by saving on your home energy bills, too. This is another big consideration people weigh up that ultimately ends with them finally putting their place on the market.
Final Thoughts
We’ve given more positives than negatives today, but we understand that downsizing is not a decision anybody makes lightly; it’s often years in the pipeline. It’s the nuances of each decision and the personal circumstances you find yourself in. The current issue that property owners have is the economic uncertainty that leads to many people staying at home in their 20s and 30s.
It’s not just a case of selling a house, especially where your family is concerned. If you still have a fondness for your neighbors and comfort with the locality, then there are so many more layers to downsizing than simply doing it to save on energy bills or cash in on the equity.
