6 Compelling Reasons Why Now Is the Perfect Time to Downsize
If you’re considering downsizing to a home that better suits your lifestyle, this could be the ideal year to make it happen! Here are six compelling reasons why the timing may never be better.
1: YOUR CURRENT HOME IS LIKELY WORTH MORE THAN YOU THINK
Over-the-Mountain homes are selling at historic highs, and you might be surprised by your home’s current market value. While most economists don’t believe we’re in a housing bubble that will crash, they do predict that home price increases will slow in the coming years. Selling your home this year will likely generate impressive gains, and waiting won’t increase your equity as rapidly as it has over the past several years. This could be the perfect time to capitalize on your investment.
2: UNLOCK TAX-FREE PROFITS FROM YOUR HOME
You can sell your current home and keep up to $500,000 in gains completely tax-free if you and your spouse file jointly. Single taxpayers can shelter up to $250,000 in gains. The only requirement is that the house must have been your primary residence for at least two of the past five years. You don’t need to reinvest the proceeds in another home to receive these tax savings. You can invest all or part of your proceeds in your next home, but you also have the flexibility to pursue things you may have been putting off—travel more, buy a lake house, spoil the grandchildren, or pursue other dreams.
3: WE MAKE DOWNSIZING MUCH EASIER FOR YOU
We understand that moving can feel overwhelming, and you may have been dreading the process. That’s why we’ve assembled a team of friendly, patient experts to make everything much easier. We can help you save time and money while significantly reducing your stress throughout the entire process.
4: HIGHER INTEREST RATES ACTUALLY WORK IN YOUR FAVOR
Rates are higher than in recent years, which is actually good news if you don’t plan to get a mortgage or need only a small one. Rising rates are one reason home prices aren’t increasing as rapidly as before. Due to higher borrowing costs, fewer buyers are competing in the market, which should help you secure your next home at a better price. If you’re using proceeds from your current home’s sale to fund your next purchase, higher mortgage rates won’t affect you at all.
5: YOUR CURRENT HOME COSTS MORE TO MAINTAIN THAN YOU REALIZE
According to research by real estate author Matt Parker, maintaining a home costs an average of 32 cents per square foot per month. This covers utilities, insurance, and maintenance like roofing, siding, painting, and lawn care—but doesn’t include your mortgage or property taxes. For example, a 4,000-square-foot home costs approximately $1,280 monthly to maintain. While this made sense when your house was at full occupancy, moving to a home that better fits your current lifestyle—say, 2,500 square feet—would lower your maintenance costs by $480 every month. That’s more money for the things you’ll truly enjoy.
6: WE’LL HELP YOU FIND A HOME YOU’LL LOVE EVEN MORE
Imagine a home in a wonderful neighborhood that perfectly suits your lifestyle, featuring the best of main-level living, lower maintenance costs, reduced property taxes, and convenient access to all your favorite activities—friends, grandchildren, restaurants, and more. After successfully helping thousands of clients make this same transition, we know which neighborhoods you’re most likely to love, and we’re eager to share our insights with you.
We’ve also assembled an excellent team of movers, estate sale specialists, and other professionals to ensure your transition is as smooth as possible.
This is an excellent time to consider downsizing. Feel free to call or text us to discuss the possibilities- Mike Wald 205-541-0940 or Hayden Wald at 205-919-5535. We’ll be happy to patiently answer all your questions with honest, straightforward guidance.
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