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:
- A smaller home means less space, but it also means less time, stress and money spent on upkeep.
- 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.
- 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.
What’s Your Home Worth?
Search for Your New Home
2574 E Detroit Place Chandler, AZ 85225
$475,000
3
Beds
2
Baths
1,427
SqFt
Status
Active
MLS #
6669633
Property Type
Single Family Residence
Price Type
--
This stunning home in the highly sought-after community of Dobson Place is a great find! A well thought out and popular floor plan makes this home perfect for those who love to entertain. Upgraded flooring throughout. The backyard is beautifully landscaped, and the entire house features a stylish neutral color scheme. Perfect opportunity to get into the ever growing Chandler market or make a good addition to your portfolio. The primary bath has dual sinks and a step-in shower, as well as a spacious walk-in closet. This home is located centrally in the neighborhood, away from any busy roads. Located 5 minutes from Downtown Chandler and within 10 minutes of Downtown Gilbert. Welcome to your next home that has just been remodeled and is ready for you
18712 W Georgia Avenue Litchfield Park, AZ 85340
$475,000
3
Beds
2.5
Baths
2,140
SqFt
Status
Active
MLS #
6678570
Property Type
Single Family Residence
Price Type
--
Welcome to the beautiful community of Zanjero Trails, featuring real grass, parks and trees, top schools zoning, with easy access to the I-10 or 303. Close to Grocery, gas, dining, coffee shops and more. As you step inside, the spacious entryway with tray ceilings and Luxury Vinyl Plank Flooring are sure to impress. Enjoy the open concept living with grand living room, dining off kitchen where you'll love the massive 10' Island, custom tile backsplash, and quartz counters. A custom accent wall adds charm, while the nearby office with French doors offers a quiet workspace. The owner's suite boasts dual square sinks, a garden tub, and a large shower. Every bedroom includes a walk-in closet for ample storage and ceiling fans. Step out into your finished backyard, north facing for ample shade with an oversized covered patio, completed with custom turf and pavers, gazebo, firepit, mountain views and a 4' side gate creating extra space between your only neighbor as you are on the coveted corner lot. You'll love the 3-car tandem garage for all your toys, bikes and golf cart, plus overhear storage for seasonal items and luggage in between your worldly travels .
21639 N Backus Drive Maricopa, AZ 85138
$475,000
3
Beds
2
Baths
1,919
SqFt
Status
Active
MLS #
6673021
Property Type
Single Family Residence
Price Type
--
Gorgeous GOLF COURSE home with HEATED POOL and views of the 12th and 13th holes. Fabulous interior featuring custom floor tile with diamond inlay, and no carpet in the whole house. Upgraded kitchen cabinets, granite counters, kitchen island with breakfast bar, and high-end stainless appliances. Fantastic floorplan with high vaulted ceilings and large windows providing lots of natural light. 4 separate doors lead to the patio and the incredible backyard. The immaculate interior is matched by the meticulously maintained landscape in the front and back yards. There is a large area of pavers on the side of the house for additional parking. You'll enjoy entertaining with the built-in BBQ, soothing waterfall, and there is a deluxe misting system on the patio powered by a compressor.
2149 S Olivewood -- Mesa, AZ 85209
$475,000
2
Beds
2
Baths
2,239
SqFt
Status
Active
MLS #
6674996
Property Type
Single Family Residence
Price Type
--
This charming 2-bed, 2-bath plus den property in the active adult community of Sunland Springs is now for sale. Featuring vaulted ceilings, an updated kitchen including granite countertops and stainless steel appliances and an oversize Arizona room, this fantastic 55+ property is located just minutes from Superstition West shopping & dining, Sunland Springs Golf Club and is a short 30 minute drive to Sky Harbor Airport. Spend your days enjoying the active lifestyle of Sunland Springs playing golf, tennis, billiards, cards, or simply enjoying your day poolside with friends.
2030 E Michigan Avenue Phoenix, AZ 85022
$475,000
3
Beds
3.5
Baths
1,734
SqFt
Status
Active
MLS #
6675573
Property Type
Single Family Residence
Price Type
--
NEW CONTEMPORARY URBAN STYLE COMMUNITY! Ask about Builder Incentives! 3 bedrooms, all ensuite, plus powder room. 2 car garage, 2 X6 Construction, Sheared Ext Walls (All plywood wrapped) Spray Foam insulation and insulated garage door for EXTREME ENERGY EFFICIECY! This home is loaded with standard features, beyond everyone else! Bedroom balcony's and first floor patio. 2 Greatroom Balcony's! Quartz or Granite countertops, stainless steel appliances, including refrigerator, Luxury Plank Vinyl floors, carpet. Approximately 5 month move-in. Hurry and select additional upgrades! 5 minutes to Loop 101 and 51 Hwy, Mayo, Kierland, Scottsdale Quarter and Desert Ridge! * Community Pool, Fitness Center coming!
44265 W Canyon Creek Drive Maricopa, AZ 85139
$475,000
4
Beds
3
Baths
3,209
SqFt
Status
Active
MLS #
6679079
Property Type
Single Family Residence
Price Type
--
Incredible home in Cobblestone Farms that is priced to sell! This home boasts a 4 bedroom floorplan with a plus 1 room, 3 bathrooms and a loft on a large 7500 sqft lot! Imagine yourself cooking in the spacious kitchen with one of the largest kitchen islands around for plenty of countertop space. Enjoy an enormous backyard from atop the only walk out balcony around that has just been completely renovated and made brand new! With tile and hardwood floors throughout, this is the perfect home for a pet friendly family looking to settle down in one of the nicest neighborhoods that Maricopa has to offer. You won't want to miss out on this gem of a future home!
11767 W Flanagan Street Avondale, AZ 85323
$475,000
4
Beds
2.5
Baths
2,379
SqFt
Status
Active
MLS #
6680806
Property Type
Single Family Residence
Price Type
--
Discover an enchanting two-story home nestled on a tranquil cul-de-sac! The interior exudes charm with its tall ceilings, two-tone paint, sleek wood-look tile flooring, a wooden panel wall, & bountiful natural light. The spacious living areas are excellent for entertaining guests! Immaculate kitchen includes SS appliances, white shaker cabinetry, recessed & chic light fixtures, Quartz counters, a subway tile backsplash, an island, a pantry, & a breakfast nook for casual dining. A flexible den is ideal for a hobby space. Upstairs, the cozy loft is perfect for a reading nook. Double doors reveal a carpeted main suite, highlighting a full bathroom with dual sinks and a walk-in closet. The backyard invites you to relax & have fun with a covered patio & a refreshing heated pool! Don't miss out
1077 S Nancy Lane Gilbert, AZ 85296
$475,000
3
Beds
2.5
Baths
1,907
SqFt
Status
Active
MLS #
6679750
Property Type
Single Family Residence
Price Type
--
Welcome home to this spacious 3 bedroom, 2.5 bath with a loft in Cooley Station North. This desirable neighborhood features a HUGE community pool, spa, parks, and playgrounds. This home features fresh paint and brand-new carpet throughout. The kitchen comes complete with newer stainless-steel appliances, granite counters, a large pantry, and island. Large loft and split bedrooms upstairs. The primary suite features a dual vanity, separate shower and soaking tub, and a large walk-in closet. Upstairs laundry. Low maintenance backyard with pavers and turf. Front yard landscaping maintenance provided by HOA. Don't miss this one near shopping, dining, freeway, and schools!
3629 N 143rd Lane Goodyear, AZ 85395
$475,000
4
Beds
2.5
Baths
2,111
SqFt
Status
Active
MLS #
6682662
Property Type
Single Family Residence
Price Type
--
Fabulous 4 Bedroom home in highly sought after neighborhood with ''A'' schools! This clean home has a great floor plan that offers lots of space and flexibility. The backyard features an expansive covered patio, extended cobblestone paver patio, and a view fence looking over the community park below. Inside there is a living room, family room and upstairs bonus room. BOSE speakers in LR/dining & patio. Living area features beautiful dark wood vinyl plank flooring, kitchen has matching GE appliances in dark stainless and includes the refrigerator. The home features ceiling fans, sunscreens, security system (owner doesnt use) and more. The garage has a sink and extra storage space. Come see this great home today &... Nice feature is none of the bedrooms share a common wall. Closets or bathrooms buffer all bedroom walls. Improvements made by the current owner includes: Dark vinyl wood plank flooring All door fixtures, handles and pins were replaced with oil rubbed bronze finish fixtures. Most of the house interior was repainted in 2016, with accent colors more recently. Built-in speakers on living room and on patio. Hunter Douglas dark wood blinds throughout Exterior was repainted in 2020. Extended Paver patio installed in 2020 and expanded in 2022 New Irrigation System for the grass in back yard Garbage Disposal replaced in April 2023 .
6534 W Desert Blossom Way Florence, AZ 85132
$475,000
3
Beds
3
Baths
2,593
SqFt
Status
Active
MLS #
6681490
Property Type
Single Family Residence
Price Type
--
FULLY PAID SOLAR is just one of the amazing features of this lovely home. Guest Suite with a sitting room, bedroom and full bath plus separate entry make this very special. Enter the gate to the charming entry patio. Upon entering the front door the first thing you notice are the beautiful French doors to the office/den. Bedroom, bath and guest suite are split from the large master suite. Unbelievable huge master closet plus a bath with a fabulous tiled shower. Large Great room is tiled with high ceiling. Gourmet kitchen with quartz counters, island, staggered cabinets and walk in pantry. Beautiful heated pool with water feature. Too much to list you just have to see it. Add to all this is the beautiful resort like community of Anthem at Merrill Ranch. DONT MISS THIS ONE!
51676 W Julie Lane Maricopa, AZ 85139
$475,000
3
Beds
2
Baths
1,512
SqFt
Status
Active
MLS #
6685675
Property Type
Manufactured Home
Price Type
--
$25K REDUCTION, priced to move! HORSE HAVEN...Welcome to Thunderbird Farms and a perfect property to have horses, cows, chickens, etc. This property has it all with MANY out buildings including 2 Car Garage, 4 Car carport, 220PRW SHOP, Conex Box, Cow pen, Horse Stalls, Chicken Coop, 50 X 50 Round Pen, and a HORSE ARENA!! OH YA, there is also a very well maintained 1500+ Manufactured home with Front and full length back porches. Take advantage of the beautiful view while sitting in your GAZEBO. Drive around your ''Western town'' or ride your horses in the fully fenced Arena. The home sits in Thunderbird Farms which has connected water and gas! Nothing is better than the morning and night breath taking view that can only be experienced by taking a drive out to see this magnificent property
10804 W Cottontail Lane Peoria, AZ 85383
$475,000
3
Beds
2
Baths
1,889
SqFt
Status
Active
MLS #
6687334
Property Type
Single Family Residence
Price Type
--
Welcome home in the desirable Tierra Del Rio subdivision! This charming 3 bed, 2 bath residence boasts a den and a bonus room off the master bedroom, perfect for a home office or gym. Enjoy gatherings in the spacious eat-in kitchen with granite countertops, island and family room. Step outside to your private backyard featuring a covered patio, a built-in BBQ synthetic grass and cozy fire pit. With a 2-car garage and proximity to shopping, schools, TSMC factory, and freeway access, this home offers both functionality and convenience. Don't miss the chance to make this your forever home!