Downsizing your home is a big decision. There are many things one will want to consider before taking such a drastic step. More than just a physical move, downsizing also requires a big change in mentality. With many different factors affecting the decision, it’s important to take the time to weigh all of your options before making a choice that has a big impact on your life.
Finances
Many people think that people choose to downsize solely based on financial motives, particularly in terms of saving money. While in the long term, downsizing will most likely improve your back account, short term it can be pricey.
Regardless of whether you are selling a home, or simply moving out of your current residences to something smaller, there will be costs involved. The costs of moving, disposing of unwanted furniture and other belongings, and potentially purchasing new furniture and household items can add up very quickly.
Before downsizing, be sure to crunch the numbers and make sure that you are comfortable with the financial commitment involved.
Family Dynamics
Downsizing can have a major impact on family dynamics. If you are downsizing with family members, be sure to discuss everyone’s needs and wants beforehand. If there are children involved, this is a decision that will affect them as well. Having an open discussion of the reasons for downsizing will help them feel part of the process and hopefully, adjust smoothly to the change.
If you are downsizing and moving away from family, again, be sure to discuss the decision with them first. They may feel hurt or left out if they find out about your plans through other means.
In either case, it is important to remember that downsizing is a big change for the entire family, and while not everyone needs to agree with your decision, it is important to try and make everyone as comfortable with the change as possible.
Emotional Attachment
When downsizing, chances are you are not going to be able to take all your current belongings with you. The term downsizing, in relation to real estate, refers to moving from a larger living situation to one that is smaller and potentially more manageable. That being said, it also means less room.
Many people are attached to their belongings for emotional reasons. They may feel like their furniture or other possessions hold sentimental value, and parting ways with them can be difficult.
Before downsizing, take some time to go through your belongings and decide what items you are not willing to part with and which ones will not be making the move with you. Take time to reflect on each item and even photograph it in order to remember it later. This can help ease the emotional attachment that often comes with downsizing.
Housing Market
The housing market is always in flux, so it’s important to keep an eye on current trends when deciding whether or not to downsize.
If you are downsizing in order to sell your home, it is important to time your sale correctly. Selling during a housing market slump could mean you receive a lower offer for your home than you would have if you had waited until the market recovered.
Alternatively, if you are downsizing and purchasing a new home, be sure that you are doing your research. It is important to find a home that meets your needs both in terms of size and budget.
In either case, it is important to be aware of the current housing market before making the decision to downsize.
Employment Status
If you are employed, downsizing may have an impact on your work life. If you are currently working a job that requires you to commute, downsizing and moving closer to your place of employment may be an option.
Alternatively, if you are downsizing in order to retire or become a stay-at-home parent, your employment status may change. Make sure that you are comfortable with the potential changes before making the decision to downsize.
Ongoing Finances
As mentioned earlier, downsizing can come with a financial commitment. In addition to the costs of moving and purchasing new furniture and household items, you may also need to update your living situation to be more affordable.
If you are downsizing in order to retire, make sure that you have enough saved up to cover your costs. If selling a home in order to downsize, you may be able to add a substantial amount to your savings, however, downsizing does not always mean less expensive.
In either case, it is important to be aware of the financial implications of downsizing before making a decision.
Downsizing can be a big change for any family, and it is important to consider all of the potential implications before making a decision. By addressing some or all of these concerns listed in this article, you should have a better idea of what to expect and how to make the process as smooth as possible for everyone involved.
