The market is amazing right now and you have been thinking about downsizing so what to do? There are some definite questions that you should think about as you make that decision.
What is the equity in your home after closing costs?
It is important to figure out your bottom line number when selling your home. You should have your realtor provide you with a seller net sheet that will lay out the estimated closing costs you will need to pay. Once you know the amount that you are walking away with you can feel confident about your next move.
What kind of lifestyle are you looking for?
Do you want a small single family house so that you have a yard and some neighbors? Or do you want to downsize to a condo or townhouse? Condos may seem like the cheaper option but maybe not. It is important to figure out what kind of maintenance that they provide and what the condo and or HOA dues cost.
Do you want to live in the city and walk to local restaurants and shops?
If so you need to ask yourself where you will put your car and if parking is included or not.
Once you decide to downsize it is also important to take a look at your belongings and decide what you want to keep and what you can get rid of.
This will help you decide how small you want to go. Assess the size of your furniture, belongings and gym equipment. Look for a place with amenities so that you can bring less stuff and use their facilities.
All in all it is a great time to grab the equity in your home and make a real estate investment that is suited toward your budget and lifestyle. Downsizing in a good market with low interest rates can definitely add to your financial portfolio.