As a homeowner, it can be challenging to determine whether downsizing is right for you. However, by understanding what downsizing means and looking at the benefits, you can often make the best decision for yourself with relative ease.
If you’re trying to determine whether now is the right time to downsize, here’s what you need to know, courtesy of Clark Real Estate.
What Is Downsizing?
According to the Cambridge Dictionary, downsizing means moving “to a smaller home, usually because your home has become too large for you or as a way of saving money.” It’s a common activity among homeowners, particularly during significant life transitions.
For example, some homeowners downsize after their children head to college or otherwise move out, often because they no longer need as much space. Others decide to downsize as they prepare to retire, allowing them to simplify their lives, cut costs, modernize, and reduce home maintenance-related burdens.
Exactly how your new home differs from your last one can vary. In most cases, you’ll have less square footage when you downsize and might have fewer total rooms.
The Benefits of Downsizing
Decluttering Reduces Stress
Unless you previously embraced a minimalist lifestyle, there’s a good chance you’ve currently got some clutter. When you downsize, paring back on your belongings is typically part of the equation. Not only does it make it a great excuse to declutter, but eliminating that extra stuff can reduce stress. You won’t feel overrun by your belongings, giving you peace of mind.
Plus, there are plenty of simple approaches that make downsizing easier. You could try:
Less Cleaning to Manage
Another one of the major downsizing benefits is less cleaning. When your home is smaller (and there’s less clutter), your cleaning needs go down. You’ll have fewer surfaces to contend with and less overall square footage, letting you tackle all of your needs in less time.
Since your home won’t have as much maintenance, you’ll have more time to spend on activities you enjoy. If you’ve regularly felt pressed for time, that alone can make downsizing worthwhile.
When you downsize, there’s nothing that says you have to stay in the same neighborhood. Instead, you could set your sights on a new location, giving you a chance to reinvent yourself after you move.
In many ways, a move can be a fresh start. By coupling it with downsizing, you’ll get both benefits at the same time.
Smaller Energy Bills
When it comes to financial benefits, downsizing your home typically shrinks your energy bills. You’ll have less square footage to heat or cool, and that alone can make a big difference. Additionally, you might have fewer light fixtures or may be able to shift to smaller appliances that run more efficiently. As a result, your energy bill could go down quite a bit without you having to change your lifestyle.
Making Money from Your Home Sale
If your current home is larger than your new one will be, you have a money-making opportunity. Smaller houses typically cost less than their larger counterparts. As a result, there’s a decent chance you’ll earn a bit of profit on the sale that won’t have to go to your next property.
The extra cash could help you accomplish a variety of goals. You could eliminate debt, making your budget easier to manage. Handling a large purchase, tackling some renovations, or taking a vacation might also be viable options.
Try a home sale proceeds calculator if you aren’t sure how much money you could make by selling. That way, you can estimate the property’s value and your potential profit, giving you a decent idea of what to expect.
Protect Your New Home
When you downsize your home to save money, the last thing you want to happen is having to spend a lot of money out of pocket to fix several things breaking at once. You can protect yourself from this circumstance by finding the company with the best home warranty for your home. A solid home warranty will protect you in the event of an HVAC or plumbing issue, ensuring that it gets repaired quickly. All you’ll have to pay is the trade service fee. Read testimonials online to find the best provider for you.
There are a host of financial benefits to downsizing your home. If it’s time for you to downsize, get started decluttering and organizing, sell your home at a profit, and protect your new home with a warranty.
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If you happen to be a rental owner, there's a high chance you've put blood, sweat, and tears into managing the said property. While the investment might have been a smart one initially, perhaps it doesn't ring true today. There are many instances in which you are better off moving on from the property than keeping it in your possession any longer. Unfortunately, knowing just when to say goodbye isn't simple to determine. With that said, you are encouraged to take note of these 7 signs that suggest the time to sell your rental property has come.
1. The value of your rental property has increased
If the value of the property has drastically increased since the time you bought it, that may be a signal it's time to convert it into cash. This approach is especially favored by professional flippers, who purchase properties only to sell them for profit a short time later. While typical flippers don't usually turn to renting, a few of those do stick around long enough to venture into the process - which goes something like this:
2. The property is no longer generating profit
It doesn't take a genius to figure out that a property that doesn't bring revenue isn't one worth keeping. Of course, if you've only recently acquired your asset, perhaps you should stick around for a bit longer. After all, it does take some time for profit to show. However, if you've already been a landlord for a while and you've been in the red for months, it might be wise to sell your rental property. It's better to let go of it now than allow it to drain your savings any further.
If you truly are keen on sticking to real estate investing, though, put your money elsewhere. For example, into another Reno property that's bound to prove more profitable.
3. You are miles away from your rental property
When you live close to your rental, managing it doesn't seem all that complicated. Whenever the property requires your attention, you are just a short drive away.
However, as life is relatively unpredictable, sometimes, we must move away. This challenging time requires us to think about many things: our next living arrangement, the moving process, and last but not least, the property we currently own. As far as hiring movers goes, it's worth noting that reliability is the most important factor to consider. Always opt for a company that has considerable experience moving people across long distances, throughout the entire state of Nevada.
While the relocation process can be reasonably smooth, maintaining your property when you live miles away becomes all that harder. You can no longer be there to tend to issues and must rely on the help of others to make do. Selling is possibly the best choice, but if you wish to keep your asset, by all means, do it. Should that be your final decision, remember to seek out a professional Reno property manager.
4. You no longer wish to be a landlord
The thought of being a landlord doesn't excite you anymore? If you find this to be true, that's a tell-tell sign that you should sell your rental property, or actually, consider selling it.
Perhaps you are just tired of the amount of work that needs to be done around the property. Maybe managing it has occupied so much of your free time, which isn't what you initially signed up for. Or, you've stumbled upon trouble with your tenants. Whatever the case, if real estate investing no longer does it for you, it might be time to leave the game altogether.
5. Your rental property has begun deteriorating
The state of your current asset is such that it requires extensive repairs to become yet again profitable. Investing in a new roof in Reno, for instance, can cost you anywhere between 6,000 and 10,000 dollars. That's about a year's worth of rent down the drain! Instead of spending a fortune on fixing it all up, it's better to sell the rental ''as-is''. This is especially true if you are dealing with a somewhat older property. The potential for something going wrong grows with age, so parting ways sooner rather than later is recommended.
6. You set eyes on another property
New opportunities to invest in something, including properties, arise constantly. Maybe you've recently stumbled upon an asset that you believe could be worth your while. The only problem being that the lack of money is preventing you from acquiring it straight away. However, if you sell your rental property now, you'll have just the amount you need to fund the new investment. But pause for a minute: are you aware of what you're getting yourself into? Is the potential of obtaining higher profits with the new property truly that great? Is it that great that it makes saying goodbye to a rental that's already been bringing you constant cash flow reasonable? Ask yourself these questions before reaching the final verdict.
7. Circumstances surrounding your life have changed
At the time you purchased your investment property, you couldn't have possibly known something in your life would change. While you would want nothing else but to keep your property, certain events could make you question that decision, including:
If you’re about to put your house on the market, you should first consider a few updates that will make your home more attractive to potential buyers. In order to maximize your profit, stay away from big-ticket items unless they’re absolutely necessary. They key is to focus on smaller, quick wins that will make a big difference. Here are a few ideas to get you started.
First, consider paying an inspector to examine your house and report on any issues he finds. You probably already know of a few minor things that need to be fixed, but a certified inspector can give you peace of mind by letting you know if the big things are in good shape. If he does find a major problem, you’ll get a jump start on determining your strategy for fixing it. To ensure a quality inspection, only hire an inspector with an InterNACHI (International Association of Certified Home Inspectors) membership.
Unclutter Your House
When you’re preparing to sell your home, here’s a idea to add to your checklist that won’t cost anything — get rid of the clutter in your house! uncluttering can make your home feel larger, cleaner, and airier, all of which make it more attractive to buyers.
Below are a few quick tips:
After you’ve uncluttered, you might notice all that open space looks a little grungy. Guess what? It’s time to start cleaning. Scrub areas that haven’t seen the light of day in a while, and use a handheld vacuum to easily reach those tricky corners without having to rely on your heavy-duty cleaner. Handhelds are also good for quick clean-ups and are easily stored away once you’ve finished tackling whatever problem fell into your lap.
Fix or Replace Leaky Faucets
Prospective buyers will instantly notice and be turned off by leaky faucets in your home. If your faucet is newer and just has a leaky valve or connection, take a few minutes and fix it. If, however, your faucet is older and needs to be replaced, it’s not a difficult project and will noticeably improve your bathroom or kitchen. You’ll likely want to replace the supply lines under the sink at the same time as the faucet. One quick tip: You will have cut-off valves under the sink to turn the water off, but make sure you know where the whole-house cut-off valve is in case of emergency. This could save you some water damage!
Spruce Up Your Landscape and Yard
Improving your curb appeal will add to the attractiveness of your home as well. Take a weekend to knock out several of these improvements.
These updates are inexpensive, quick fixes that will help you obtain a higher price as you sell your home. Take a few days to implement them and you’ll be surprised how different your house feels. Prospective buyers will be impressed as well, and that’s your goal — so get to it!
Clark Real Estate
305 W. Moana Ste C
Reno, NV 89509