Month: December 2021

Real estate is a topic that’s always in the news as well as heavily debated in many social spheres. It’s also an area that is constantly evolving which can make it difficult to determine what’s fact and what’s fiction. One thing is true – there is plenty of misinformation when it comes to real estate. Here are five popular myths that are not true when it comes to buying or selling real estate in today’s market.

Myth #1 – Buying a house is always the best financial decision

There can be truth to the statement, “buying a house can be a good financial decision”, after all, buying a house is often the biggest purchase someone will ever make. However, there are times when it is simply not financially responsible to buy a house. Some examples of these times include:

• When your debt to income ratio is too high
• If your cash flow is limited
• If you have a lack of personal savings
• You have instability in your job

In short, if your disposable income is low and/or your debt to income ratio is high, it may not be wise to take out a mortgage. In addition, the goal of buying a house should never just be about buying as soon as possible. It can be easy to get swept up into the idea of homeownership but it’s advisable to look closely at your assets, make a plan, and embark upon that process when it makes the best financial sense to do so.

Myth #2 – You should buy as much home as you can afford

If you buy as much home as you can afford, you’re potentially setting yourself up for difficulty with the lemons life may throw your way. Not only will you be paying your monthly mortgage payments, but you’ll also be responsible for any unexpected repairs and the routine upkeep that come with owning a home. It’s better to buy a modest home that you can comfortably afford instead of stretching your budget to buy a larger one.

Myth #3 – A bigger house means a better return on investment

This is not always the case. A bigger house costs more to buy and maintain. So, unless you’re able to get a significantly higher price for your home when you sell it, you may not see as good of a return on your investment. In addition, the market conditions at the time of your sale will affect your final selling price. It’s not always possible to predict whether the market will be high or low at the time of your sale, but you can look at similar homes in your areas to get an idea of how much they are selling for.

Myth #4- The more expensive the house, the better it will be for reselling in the future

Similar to above, market conditions can be difficult to predict. The more expensive a house is, the more difficult it will be to sell at a price that makes you a profit. However, there are some other factors that can affect whether your home has good resale value:

Some of these items include:

• Your home is located in a desirable neighborhood
• The cost of living near your home is reasonable for those looking to buy it
• You’ve made updates to the home – especially kitchen and bathroom

Myth #5- I don’t need a real estate agent to help me buy or sell a home

Research has shown that homes marketed by agents tend to sell for more money and in a shorter amount of time than those that are not. For example, according to the National Association of Realtors, a typical for-sale-by-owner home sold for $260,000 vs $318,000 for an agent-assisted home sale.

An agent can help you negotiate the best possible price for your home. They will have extensive knowledge about the market conditions in your area and can advise you on when to buy or sell.

An agent will be able to refer you to reputable lenders, contractors, and other professionals who can help you fix up or clean your existing home or get estimates on costs to remodel a potential new home. Their networks are deep with people who are skilled in multiple facets of the real estate process and the needs of homeowners.

If you want the best possible experience with real estate, it’s very advisable to work with a realtor.

In summary, there are a few myths that people often believe about buying and selling homes. However, it’s important to remember that there is no one-size-fits-all answer when it comes to making these decisions. You should always consult with a professional before taking any major steps in the real estate process.

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Downsizing regret is a term that describes buyers who move into smaller homes and then regret their decision.  These buyers often feel cramped in their new homes and miss the extra space they had in their previous residences.

A recent survey suggests that 29% of seniors who’ve retired and moved have done so to “downsize”. What could have been the “golden years” in their new space may instead become a source of discontent and regret.

1. Consider emotional aspects

When downsizing, it’s important to consider the emotional aspects of your decision. It’s not just about the number of bedrooms and bathrooms – it’s about how you want to live now.

Life transitions can lead you to consider change, and when paired with a recent retirement, you may be feeling “ALL the feels” at once. It’s important not to make decisions too quickly, and with great consideration. By objectively working through whether your current home “fits” your new lifestyle, you’ll be able to embrace your transition more fully.

2. Know what you want in a home

Location, size, and amenities all play a role in finding the right home.

Is the new location convenient for driving? Is it near seniors’ services or transportation? What about medical services? Are you within a convenient driving location to family and friends?

These questions may feel daunting and possibly even overwhelming.  But if you take the time to answer them, you can begin to see a clearer picture of what you want in your next home. Think of what you not only need now but in the future, as well.

3. Be realistic about your living space needs

The number of bedrooms and bathrooms you need in retirement may not be the same as when you were raising a family.

Think about your hobbies, whether you’ll have guests over often and what activities you want to take part in. For example, if you love to cook but don’t have groups of friends (and children’s friends!) who visit anymore, will a large kitchen with lots of counter space be needed?

Remember, it’s not about filling up space just for the sake of having extra room. How will you use the space?

And, of course, don’t forget about your yard space. Do you want to spend time mowing the lawn, shoveling snow, and maintaining a garden? Or does a smaller yard with less maintenance free you up for hobbies that you’d like to participate in?

4. Recognize the benefits

Recognize that there are many benefits to downsizing that you may have not thought of, but yet may be quite appealing.

For example:

• Less responsibility
• Lower maintenance costs
• Smaller house size = easier to clean!
• Lower heat and utility bills
• Less maintenance = more time for travel, hobbies, and time with family

In addition, there may be tax benefits to downsizing. Be sure to consult with your accountant or financial advisor to see what options may be available to you.

5. Be realistic about what comes with you to your new space.

You may be bringing items from your larger home that you thought you “had to have”, but really just take up space and don’t fit into your life as it is now.

For example, your 8-person dining room table might be great for big holiday dinners with family, but you may not host those large gatherings anymore. 

Downsizing doesn’t have to mean making sacrifices or giving up everything you’ve held dear for so many years. It can be an exciting time of change and growth.

Think about what you can live without and what will truly enhance your new lifestyle. And if certain items aren’t bringing value to your life, why not sell them? You can use the money for fresh new furniture, art, and accessories or even a trip to an exotic location on your bucket list! Making memories with others is a true gift.

6. Get help from an expert to determine what will work best for your needs and budget.

Making such a big life change is complex.  You don’t have to go through it alone.

There are many professionals who can help you downsize your home in a way that is best for you and your family. Interior designers, professional organizers, and downsizing experts can all offer valuable advice on what will work for your unique situation.

Taking the time to make a thoughtful decision about downsizing and living arrangements can help you embrace your next chapter and create a home that truly reflects the life you wish to live.

As you approach this decision and are looking for a realtor to help you through the process, contact me! I would be honored to assist you.

By taking the time to answer some key questions about your needs and desires, you can begin to see a clear picture of what type of home will best suit your retirement years.

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