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

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 – J.P. Cook – 602-320-4253.

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5818 N 22nd Drive Phoenix, AZ 85015

$455,000

4 Beds

2 Baths

2,050 SqFt

Status Active

MLS # 6685236

Property Type Single Family Residence

Price Type --

Huge lot in the city with a pool! 4 beds 2 bath remodeled home. Fresh paint, new kitchen and counter tops, clean working pool. Open large floor plan with new flooring and carpet. Large remodeled restrooms and master is almost the size of two bedrooms.

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355 S Latigo Way Cottonwood, AZ 86326

$455,000

3 Beds

2 Baths

1,695 SqFt

Status Active

MLS # 6689165

Property Type Single Family Residence

Price Type --

Centrally located, this gem combines natural beauty with modern amenities, offering an idyllic lifestyle for anyone looking to buy. Don't miss your chance to claim this home, where luxury meets efficiency, and the views are simply unmatched from the front of the home looking towards Mingus Mountains and rear of home towards the gorgeous Red Rocks of Sedona, giving spectacular reverse sunsets. Experience energy efficiency and cost savings with owned solar panels, and enjoy the comfort of newer Lennox furnace and A/C units at your fingertips. Add to that the convenience of an indoor laundry room, with cabinets and a newer washer and dryer. Revel in the high ceilings which enhance the home's open and airy ambiance, while the professionally installed vinyl flooring in the entryway, family room, kitchen, and bathrooms exudes modern sophistication. The master suite features a spacious walk-in closet with built-in cedar planking shelving for shoes, ensuring organized and stylish storage. The rear guest bedroom comes with brand-new carpeting, adding a touch of luxury and comfort for your guests or family members. Experience culinary perfection with matching Samsung appliances in a kitchen that's a chef's delight, and enjoy the health benefits of a water softener, whole-house chlorine removal system, and reverse osmosis for pristine water quality. Indulge in the convenience of instant hot water to sinks, saving time in your daily routine. The home has been thoughtfully updated with all walls freshly repainted and decorative base trim in most rooms. New light fixtures in the dining and kitchen areas provide the perfect blend of functionality and style. As a bonus, the garage door has been meticulously maintained, receiving periodic visits from a local company, ensuring that the motor and springs, replaced within the last year, are in top condition. Additional practicality comes courtesy of the new mop sink installed this year, complete with special fittings for a garden hose - ideal for refilling the backyard oasis that is your personal HotSprings salt system spa. Seating 4 comfortably with two lounge chairs, relax and gaze upon the stars, an awesome experience that awaits you each night. This property is designed with outdoor living in mind, featuring a large rear covered back porch that spans an impressive 34 feet in length, enhanced by decorative pavers. The porch is adorned with 3 decorative exterior ceiling fans, creating a cool retreat for those warm summer days. With a gas connection ready for your barbecue, the outdoor space is ideal for hosting friends or simply enjoying a quiet evening. Privacy and tranquility are provided by a jasmine plant that fills the air with a delightful seasonal aroma. A planter box with faux ferns adds a touch of greenery and charm. This home invites you to imagine your life surrounded by these thoughtful improvements and indulgent features. Welcome home to comfort, style, and unforgettable moments.

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126 S Laura Lane Casa Grande, AZ 85194

$455,000

3 Beds

2 Baths

2,063 SqFt

Status Active

MLS # 6686900

Property Type Single Family Residence

Price Type --

Experience Arizona living in this fully furnished haven boasting 3 bedrooms, 2 bathrooms. Enhanced w/upgrades, including custom interior paint, tile flooring, & vaulted ceilings, every corner exudes comfort and style. Entertain effortlessly in the expansive kitchen, featuring raw tumbled marble countertops, cabinetry w/hardware, & an RO system. Retreat to the spacious primary owner's suite w/a luxurious en suite bathroom, complete w/a walk-in shower and a sizable walk-in closet. Garage is extended. Outside, the heated pool overlooks the golf course, providing a picturesque backdrop for relaxation or gatherings. The full-length patio, adorned with pavers, ceiling fans, and remote lighting, invites you to bask in your own slice of paradise. This home will not last long. Call Now!

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16541 W Sierra Street Surprise, AZ 85388

$455,000

4 Beds

3 Baths

2,284 SqFt

Status Active

MLS # 6686167

Property Type Single Family Residence

Price Type --

A nice house in great community Sycamore farms community pool open floor plan for guest entertainment where all guest can be together on area really well maintain condition Also it is a good location on the west valley area. everything there hospital near by

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