It’s a Seller’s Market! Should I Downsize Now?

This article about downsizing (or “rightsizing” as we like to call it!) from “Keeping Current Matters” brings up some great points. Call us at (703) 242-3975 if you’d like someone to help lay out your options and walk through current market conditions with you. You might also check out our blog posts:

It's a Seller's Market! Should I Downsize Now? | MyKCM

A study by Edelman Berland reveals that 33% of homeowners who are contemplating selling their houses in the near future are planning to scale down. Let’s look at a few reasons why this might make sense for many homeowners, as the majority of the country is currently experiencing a seller’s market.

In a blog, Dave Ramsey, the financial guru, highlighted the advantages of selling your current house and downsizing into a smaller home that better serves your current needs. Ramsey explains three potential financial advantages to downsizing:

  1. A smaller home means less space, but it also means less time, stress and money spent on upkeep.
  2. Let’s assume you save $500 a month on your mortgage payment. In 30 years, you could have an additional $1–1.6 million in the bank to get you through your golden years.
  3. Use the proceeds from selling your current home to pay cash for a smaller one. Just imagine what you could do with no mortgage holding you down! If you can’t pay cash, aim for a 15-year fixed rate mortgage and put at least 10–20% down on your new home. Apply the $500 you saved from downsizing to your new monthly payment. At 3% interest, you could pay off a $200,000 mortgage in less than 10.5 years, saving almost $16,000 in the process.

Realtor.com also addressed downsizing in an article. They suggest that you ask yourself some questions before deciding if downsizing is right for you and your family. Here are two of their questions followed by their answers (in italics) and some additional information that could help.

Q: What kind of lifestyle do I want after I downsize?

A: “For some folks, it’s a matter of living a simpler life focused on family. Some might want to cross off travel destinations on their bucket lists. Some might want a low-maintenance community with high-end upgrades and social events. Decide what you want to achieve from your move first, and you’ll be able to better narrow down your housing options.”

Comments: Many homeowners are taking the profits from the sales of their current homes and splitting it in order to put down payments on smaller homes in their current locations, as well as on vacation/retirement homes where they plan to live when they retire.

This allows them to lock in the home price and mortgage interest rate at today’s values which makes sense financially as both home prices and interest rates are projected to rise.

Q: Have I built up enough equity in my current home to make a profit?

A: “For most homeowners, the answer is yes. This is if they’ve held on to their properties long enough to have positive equity that will be sizable enough to put a large down payment on their next home.”

Comments: A study by Fannie Mae revealed that only 37% of Americans believe that they have significant equity (> 20%) in their current home. In actuality, CoreLogic’s latest Equity Report revealed that 78.9% have greater than 20% equity. That equity could enable you to build the life you’ve always dreamt about.

Bottom Line

If you are debating downsizing your home and want to evaluate the options you currently have, let’s meet up to help guide you through the process.Call Terry Belt &The Belt Team at 703-242-3975. Don’t you deserve the BEST?!

WHat Is My Home Worth

Selling A Home In Northern VA? Meet Our Buyers!

Northern VA Home BuyersThe Belt TeamDownsizing Your Home Northern VA Real Estate

One of the benefits Belt Team clients have is the fact that we work with so many different Buyers & Sellers each year. It’s not unusual that we can “match-make”. We’ve sold many homes before they hit the market because we keep an active list of Buyers we’re working with (imagine saving the inconvenience of having your home in “showing condition” day after day after day). And we’vee found many homes for our Buyers before they hit the market (which is an added bonus in today’s competitive market of low inventory!).

We currently have quite a few Buyers who are ready to move and who have no home sale contingencies. “Help Us Help The Homeless”! Call (703) 242-3975 if our Buyers look like a match for you or if you would like to get on our “Meet Our Buyers” List!

MEET OUR BUYERS  . . .

(Note: Our active buyer list fluctuates daily and also includes buyers who prefer not to be listed here – especially in the upper ranges. We have buyers in almost all areas of Fairfax, Loudoun, Arlington & more! Make sure to call (703) 242-3975 to check the full list!)

  • A professional couple with two teenage children are looking for a townhome walking distance from Metro in the Marshall High School District. Their ideal price is up to $700,000.
  • A young professional couple, both engineers employed by the government, are looking for a townhome near Gallows Road, Dunn Loring area is ideal. Their ideal price is below $550,000.
  • A dentist and his lovely wife and daughter want to live in the Westbriar Elementary District in Vienna. They would love to find a colonial that has been updated with an open floor plan. Their ideal home has a private back yard and can be priced up to $800,000.
  • First time home buyers seek a single family home in Falls Church or Annandale, with commuting access to the District, priced close to $400,000.
  • A professional couple renting in Reston is seeking a home in Reston or Herndon, priced under $450,000. Their ideal home is a single family near or in the Town of Herndon, or an updated townhome in Reston or Herndon.
  • An architect and an artist seek an open floor plan home. A townhome or single family with small yard will fit their needs. They would even consider building a home if land was available for $400,000 or less.
  • An investor seeks a cash purchase in Pimmit Hills where he owns several properties already. He can close in a week for the right opportunity.
  • A professional couple currently living in Ballston seeks a single family home, completely updated or renovated, with a master suite, finished lower level with bedroom suite, screened porch, and a fenced yard for their Welsh Corgi. Their price range is in line with their needs, up to $1.3M.
  • A World Bank employee is seeking a two bedroom, two bath condo in Vienna near metro, priced at $220,000 or lower.
  • A renter in Hawthorne Village seeks a condo to purchase in that development.
  • A family living in Vienna seeks an upgrade to their current home. Ideally, the home will back to woods and have a deck, patio or other outdoor enjoyment area. The home needs to be updated, with renovations to the master bath and kitchen. A finished walk out basement is ideal. Their price and buying power reflects their needs, an ideal range is under $1,000,000.
  • Four buyers looking for single family homes in Vienna under $600,000.

Call Terry Belt & The Belt Team at (703) 242-3975 if our Buyers look like a match for you or if you would like to get on our “Meet Our Buyers” List!