Is Downsizing Your Home Really Cheaper?

Arizona’s Valley market boasts an abundance of schooling and job opportunities. Many homeowners are left with a big Las Sendas homes that are mostly empty once the kids leave and start their own lives. If you’re in the same boat, you might be considering downsizing your home to save money, but is this really the best option for you? There are many ways to save money, and relocating to a smaller home seems to be option that homeowners think saves them the most – but does downsizing really save you that much more money? Is it a good choice for you?

downsizing home cheaper

Tax Costs

You may think that downsizing will save you tons of money, but you may be surprised to find out that it doesn’t have the appeal it should. One of the biggest expenses that downsizing homeowners incur is on taxes. You could lose your money to federal and state capital-gains taxes, and this could really decrease the amount of money you get for your home. So in order to get the best information possible, consult with a tax advisor to make sure that you are not losing money on the home you have invested so much in.

Cost of Repairs

Next to possible tax costs, another common expense that pops up when you are selling your home is the cost of repairs. If you have sold a home in the past, you know that you will first need an appraisal so you and your realtor can determine a list price. This could bring up unwanted expenses, especially if you have lived in the current home for more than a few decades. Over the years, your home ages and could require attention to certain areas, such as the roof, plumbing system, and foundation. Updates and repairs after an appraisal could make you spend more money than you are prepared to dole out. Before pulling trigger on a new, smaller home, make sure you are ready to spend extra money just in case there is something unforeseeable that comes up during the appraisal.

The Moving Process

Another pricey cost associated with downsizing is the process of moving. Doing it yourself is not as easy as it seems, especially for older homeowners. If your friends and family are not willing to help, hiring a professional moving company is the most logical choice. This could be an added expense that you are not ready to face. Also, a careless moving company could damage your possessions, causing more expenses if you must replace items that they have caused irreparable damage to.

Increased Storage Expenses

Most notably, downsizing could also come with the surprise expense of storage. While packing, you may be surprised to find out just how many items you have accumulated over the years. Having a larger home means more possessions. When you move into a smaller house, that everything that once fit in your lavish home before may not fit in your new, downsized space. Often, homeowners must make an important tradeoff, either choosing to part with prized possessions through a garage sale, or adding a monthly storage cost to place excess items into a storage unit. When it comes down to it, added expenses are the last thing you need when you are trying to save your pennies.

downsizing home really cheaperOther Hidden Fees

More hidden fees of downsizing include homeowners association (HOA) fees or condo dues. But more importantly, if your are moving to a new town or even out of state, your family might experience increased property and sales taxes. These hidden tax increases can really add up. So before you relocate and downsize, you may want to consider these hidden expenses, because while you think you might be saving money, it can be just the opposite.

For your next move, don’t hesitate to use Coldwell Banker East Mesa. We have the necessary knowledge and experience to make sure that when you downsize, you aren’t paying the ultimate price for trying to save a little more money. With our experienced professionals, you will get the best realty advice we can provide so you know that you are making the right choice. So don’t wait to find out if you should be downsizing or staying where you are, with Coldwell Banker East Mesa. Give us a call at (602)-618-9512.

Published By:

Coldwell Banker Trails and Paths
2913 N Power Rd. Suite 101
Mesa, AZ 85215

Office: (480) 355-4700

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