Tips for Empty Nesters Thinking about Downsizing
Want to put together a plan for your downsizing goals?
5 Tips for Empty Nesters Thinking About Downsizing
If your last child just crossed the stage in their cap and gown and you're starting to plan your next stage of life while sitting in your big empty house, it might be the perfect time to start thinking about downsizing. Downsizing can be a big change but also an opportunity for a fresh start. Here are our top 5 tips for empty-nesters thinking about downsizing.
1. Talk to your financial advisor. You want to have a really clear sense of your upcoming financial needs so that your budget for your new home supports the lifestyle that you desire. You will also want to connect with your CPA so that you understand any tax implications from your sale.
2. Think about your dreams for this next phase of life. Have you always wanted to live by the beach? Or perhaps you fantasize about an idyllic farm in the country. Or maybe you long for the ease of a worry-free condo where you can travel on a whim and just close the door behind you. And don't forget to consider the option of moving out of the area. Northern Virginia has a ton to offer but is not known for being inexpensive. So it may be worth exploring other areas with lower costs of living where your proceeds from your sale will go even further.
3. Start packing. If your kid just moved out, they probably no longer need their 8th-grade science fair project, so throw out, donate, or store anything that will not be used on a regular basis. This will give you a head start on both preparing your home to show well to potential buyers as well as for your move.
4. Spruce things up. If you have been living in your home for many years, there is a good chance it's due for a refresh. But you don't necessarily have to do any major renovating. A fresh coat of paint, updated flooring, and a deep clean can have a huge impact. If you would like a customized home-prep checklist specific to your property, call or text and we would be happy to put one together for you.
5. Explore your options for how to buy when you need to sell. If you don't have the ability to purchase a new home without first selling your current home, don't worry! There are lots of options available. You could sell your home with a rent back where you close on the sale of your current home and then continue living there as a renter for up to two months while you complete the purchase of your new home. You could utilize a home equity loan to make your new purchase as a cash buyer. Or you could use a cross-collateral loan which would allow you to have a mortgage on your new home and your current home before it sells. You need to work with an excellent local lender to find the option that works best for your financial situation, so let us know if you need to be connected with someone who our clients have loved working with.
Though it may be a bit emotional, downsizing can also be a really exciting time. Let's chat to put together a game plan so that you can put yourself first and really enjoy this next phase of life.