Downsizing is a relatively recent phenomenon that involves parents selling their home when their children fly the nest. A family home becomes almost too large when this happens, and space is needlessly wasted.
By selling a larger home and using the money to buy something smaller, parents can free up cash to use on other things. For example, they may want a little extra cash for their retirement. Or they may want to splurge on a foreign holiday.
But it’s not just the “empty nesters” who are downsizing. People are making the decision to swap their home for somewhere smaller for many reasons, including divorce, to pay off debt and to reduce the cost of living.
If you’d like a little extra cash in your pocket, and you’re not averse to living in a slightly smaller property, downsizing could be the way to go. But there are a few things you need to consider first.
Downsizing options
Unless you’re downsizing to pay off urgent debt, you can probably afford to take your time on the housing market — and this should work in your favour. You don’t need to accept the first offer made on your property, which puts you in a strong negotiating position.
If you’re using an estate agent to sell your house, tell them that you’re downsizing. Your agent will suggest a strategy, and whether or not making a few improvements or changes to your property is worth the expense. The goal is to maximise your return to give you as much spare cash as possible. Whether this involves selling your home in its current condition or making those changes depends on how quickly you want to sell and the intricacies of the local market.
Of course, for many people, downsizing is all about starting a new chapter in life. If you’re retiring, for example, you might be keen to sell up as quickly as possible. After all, you’ve worked all your life and you want to start enjoying your newfound leisure without delay. In these circumstances, you can cut out the marketing and negotiation stages of the process by selling your home to a specialist house buying service such as Flying Homes. If the circumstances are right and the offer is agreeable, you could be moving into your smaller property within just a few weeks.
Things to remember when downsizing
Before you take the plunge, there are a few things you need to be prepared for:
This is a long-term decision
It always pays to plan ahead when downsizing. For example, will you need space to work in the future? Are you planning on having your grandchildren over on a regular basis? These considerations should be at the forefront of your mind when searching for your new, smaller home.
Think about storage
Climbing over all the possessions that don’t have a permanent home isn’t conducive to a relaxing retirement. Whether you’re downsizing to pay off debts or start a business, you need to know that your new property is capable of offering both functionality and comfort.
Consider the hidden costs of moving
It’s all well and good selling a property in order to raise the cash you need for your next chapter in life — but you can’t assess whether or not the move will be feasible until you’ve added up the hidden costs. The cost of repairs, agents’ fees, surveys, removals and many more issues related to moving home should all be factored in BEFORE you start the downsizing process.
How much space do you really need?
Take a stroll around your current property, and try to imagine your life without those spare bedrooms and that open-plan kitchen/diner. Could you function as normal? Would you be happy? Would you be able to do the things in life that make you happy, such as entertaining and pursuing your hobbies?
If you’re happy that you can enjoy life just as much in a smaller home, downsizing is probably a great way to put some extra cash in your bank account.
But it’s important to know exactly how much space you need from your smaller home. The process of downsizing usually starts with packing everything up. This should give you an idea of the furniture and possessions you don’t need. You’re likely to have a lot less storage space in your new property, so getting rid of unnecessary clutter is essential.
Sell or donate
Gather together everything you don’t want or need, and sell it at auction or at a local car boot sale. Alternatively, there are always charity organisations that will take old furniture, clothes and general household items off your hands.
Think of downsizing in terms of shrinking your entire life down to something half the size. You probably won’t be able to hold onto everything without cramming your new home with stuff unnecessarily, so be realistic.
If you plan ahead, take expert advice and remain realistic, there’s no reason why you can’t make a complete success of downsizing.
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Daniel Peacock