These days, we all live longer, healthier, more active lives than ever before. While building a dream home that lasts to retirement may have been a goal for our "greatest generation" parents, more recent generations are realizing that the home where we spent our 30's and 40's may not be where we want to live as we wind up our careers and look toward retirement. If you find yourself in this group, the great news is that the market is the perfect storm for you right now! Here are my To 10 Reasons Why You Might Not Want to Wait to Downsize!
#10- Your house is now worth more than ever!
Anyone who has seen a news program lately is probably aware of the effect the pandemic has had on the house market. For a multitude of reasons, new home starts are down, which leads to a reduction in resale inventory as well. As the mechanics of supply and demand work their magic, prices are rising at a pace we have not seen in many years. This means that a home you bought just a few years ago may have seen a significant increase in value, giving you more equity in your home.
#9- Inventory is extremely low right now!
This benefits sellers in a few of ways. As we noted above, reduced inventory brings higher prices, allowing you to extract more value from your home investment. Another great benefit to sellers is that buyers know they can't be picky right now. Competition for properties mean buyers are willing to overlook minor flaw and cosmetic issues that may have been deal breakers in the past. If your house is clean, organized, and in reasonably good repair, you can get a fair price without having to spend a lot of money on make-ready and prep. And if you have the ability to put your house in "like new" condition, you can command top dollar in this very tight market! Finally, you can expect your house to sell very quickly. You won't have the inconvenience of constant showings, having to keep it spotless for months on end, etc. If your home is priced correctly and well-marketed, it is likely to be on the market for less than 5 days!
#8- Downsizing gives you the cash to conquer the market!
You might have heard nightmare stories of bidding wars or unfortunate concessions made by desperate buyers in an attempt to buy listings in this tight market. Some of these stories are at least partially true, but you have a bargaining chip that others don't- cash from the equity on the sale of your home. When you are downsizing, it's possible that your new home may cost significantly less than the value of your old home. In this case, you have the cash necessary to win the contract over other offers that carry more risk of not closing due to high debt margins, seller contingencies, and tight cash for downpayment. You and your agent are in a much better position to put forth an offer that will be accepted and stay together through closing.
#7- Spend less time on maintenance and more time on life!
You've worked hard to provide a beautiful home for your family and get your kids through school. Part of that hard work was the maintenance routine of owning a big home that now sits largely empty, at least most of the time. Even if you want to continue with a single-family home, a smaller home with no pool on a smaller lot may significantly reduce the amount of time and money you spend on upkeep. If you want to take back even more time for yourself, consider a patio home or townhome, with no yard to take care of at all. Or for the ultimate in luxury as a reward for your hard work, how about a high-rise condominium or co-op, with valet service, a concierge, and wonderful amenities all maintained by someone else?
#6- Travel prices are down for the foreseeable future!
Since you've found all that free time by eliminating maintenance, maybe it's time to get an early start on that promise you made to yourself to see the world in your retirement? Why wait? You've got plenty of PTO built up, and these days we can work from anywhere! Lock the door to your low-maintenance home, head to the airport, and jet off to faraway destinations while the prices are low and travel carriers are competing for your business!
#5- Your kids don't want your stuff!
I know, I know- you've got all this "stuff" you acquired during the decadent 80's, and you're saving it for your kids when they have homes of their own. Well, guess what: they don't want it! Today, less is more, and modern homeowners don't want to be burdened with china they'll never use or heavy wooden furniture in which to display it. Their lifestyle is light, fluid, practical, and casual- your Portmerion collection with the matching flatware may have fond memories for them, but that's all they want of it: memories. Don't believe me? Ask them. Give them what they want, get rid of the rest, and take only what you love into the new space of your future!
#4- You need new stuff!
By the time your kids move up and the family pet has crossed the rainbow bridge, you may be looking at furniture that's seen it's better days, curtains that are worn for the wear, and, in general, a decor that no longer suits your tastes. But why redecorate a place that you're only going to live in a short while before you retire? There's no point in buying a huge sofa for that enormous great room if your end goal is a townhome in the Heights, or a condo in Montrose. Make the move now, and decorate with an eye to your future!
#3- You never use that pool!
Remember the year you built the pool? The kids were so excited- not just yours, but all the kids in the neighborhood. Then remember 5 years later, when they had moved on to other things, and the only time it saw eyeballs was when you went out to clean and maintain it? Take those memories with you, but leave the pool behind! If you enjoy swimming, how about a condo or apartment with a pool? Or, see #6 above, and make sure all those destinations have one! It really is a hole in the ground into which you pour money!
#2- You're tired of the constant commute!
The commute wasn't so bad at first- in fact, you kind of enjoyed a little "me" time in the car before you got back to suburbs, where the hustle and bustle of the family would break up any solitude you may seek. But after all these years, it's just become drudgery! There's so much more traffic than there was 10 years ago! And when you get home, there's plenty of quiet time to be had these days. Do yourself (and the planet) a favor and cut the commute! I PROMISE you won't miss it!
#1- It's time to start living your dream!
I don't think anyone dreams of a lifetime of yardwork, pool maintenance, bathroom cleaning, and garage sorting. Leave the past behind, and move on to your next big thing! Whether that's a foodie lifestyle in one of America's greatest eating cities, a sailboat on the water, or a jet-set style that puts you in a different place every weekend, you don't have to wait for retirement to enjoy those things. Today's real estate market and our new "office anywhere" working system make this the perfect time to set yourself up for the future!
If you're curious about your home's worth, let's talk. 281.635.4065. In this market, it's probably worth more to someone else than it is to you- and that's a dream come true!
