Downsizing is the process of leaving from a bigger house to a smaller one. It can be a choice when one desires a simpler life thus a need for a smaller space and low maintenance house. It can also be a necessity when one is facing financial problems and could no longer afford the maintenance cost of a bigger house.
Downsizing brings forth a number of advantages – lower maintenance costs, increased cash flow, less stress, more time.
Lower maintenance cost because smaller house requires less energy to heat or air conditioned, less water to clean, less square footage to upkeep.
Increased cash flow simply because you are paying less in your utility bills.
Less stress because you now have less workload and responsibility combined with a greater income; you could not be any happier. And you now have more time to spend something more enjoyable other than cleaning your house.
When you are the owner of the house, downsizing is easier. You can sell it right away and use the money to buy a less-expensive house. If you are unable to find a buyer yet, the alternative is to look for financing. That is, you apply for a mortgage to purchase a smaller house while waiting for your current house to sell. It is easier to apply for a mortgage when you have a high credit score, that is 700 or above. Most mortgage companies require a high score or a large down payment before you qualify for a loan.
One possible challenge of downsizing is when your house is worth less than you estimated. If your reason for downsizing is financial difficulty, you might end up with nothing after the sale. Or if you want to use the proceeds of the sale to purchase a new house, you might want to make sure that it is enough else you will be facing more problems.
What better way to ensure that you are in win-win situation after downsizing? That is to sell your house for cash. When you have cash on hand, you can buy any new house that fits your budget.
Lucas Properties, a private investor, buys houses with cash. They buy houses in any condition – inherited houses, unwanted houses, houses with tax problems, & houses that need repairs. Contact Lucas Properties today!