Your children have moved out and that large home that once catered to three teenagers and their friends, is now lived in by you and your spouse. Have you taken the time to consider your options? Although you might be extremely attached to your home, it may be beneficial to take the time and consider the best other possibilities.
The Canadian real estate market has been on a sprint and with low interest rates, the value of homes has been steadily increasing. Baby boomers are faced with the dilemma: to downsize or not to downsize.
Consider the following hypothetical: you bought your home in 1983 for just under $200,000. Today, that same house has a market value of $1.1 million. If your home has a $200,000 mortgage, for example, selling your home today will free up over $900,000 in equity.
For most people, their home is their largest asset, and simultaneously, one of their biggest expenses. Some people consider the equity in their home as a large portion of their retirement plan. Alternatively, others avoid incorporating their home into their savings plan as they have no desire to sell.
The decision to sell requires strategic and careful planning. Selling in a strong market and buying in the same market requires consideration. Downsizing can have many upsides, but it is important to be well informed about the process.
The following are a few tips to consider:
* Establish why you want to downsize. It is important to be true to yourself and establish the incentives and realties of downsizing. Are your reasons financially driven or practical? Are there affordability factors or are you interested in alternative maintenance-free living options? Once you establish why you are downsizing, it will guide your process.
* Analyze your needs and requirements. Consider your lifestyle and prioritize accordingly; i.e. condo living, interest in travelling, moving closer to family, comfort of not having to climb stairs, etc.
* Location interests – are you interested in staying in the same area that you currently reside or do you want to move into a different area to enjoy a change of scenery? Perhaps you want to be walking distance to amenities in the city that your home in the suburbs did not offer. Whatever your reason, consider that location may guide your options.
* Engage a real estate professional to discuss pricing. A real estate professional has industry knowledge of the market and available options. If downsizing is financially motivated, make sure your expectations of selling and moving are realistic. To gain some perspective, engage a professional to get a reliable and accurate evaluation on the value of your home and downsizing options that meet your criteria.
For over 50 years, Harvey Kalles Real Estate Ltd., Brokerage has been dedicated to offering professional service to all of our customers. We uphold a standard of excellence and service unparalleled in today’s ever-changing real estate industry. Our dedicated real estate professionals work together to form a powerful and committed sales force.
