Thinking of Downsizing – Things to Consider
Ask yourself the following questions:
Assess your actual needs. Getting organized for a move to smaller home will include measuring the furniture you want to keep, assessing new storage areas, and analyzing your current lifestyle and priorities. Those items that are not used on a regular basis should be sold, donated to charity, friends or relatives or tossed out. For those items which are hard to get rid of put them in storage. If, after 6 months you haven’t needed them, get rid of them. For help in sorting out many possessions, you can hire, for a cost, a personal organizer.
Organize and sell your stuff. Room by room go through every drawer, cabinet, cupboard, shelf and closet and only keep the things you cannot live without and use on a regular basis. This includes the garage. Those items that you want to keep and store, pack in plastic bins and label. Organize a garage sale, advertise on Craig’s list, Next Door Neighbor, Facebook and eBay. A liquidator can be hired, at a cost (typically 30-40%) to do an estate sale.
Figure out how much money you will get from the sale of your home. Determine a realistic sales price, and deduct the mortgage balance, closing costs and cost of sale to figure your net proceeds. This will help in deciding what price you are willing to pay for your next home.
Once you decide to sell determine what needs to be done to prepare your home for sale. This may include deep cleaning, carpet cleaning, window washing, and some fresh paint. Small improvements and repairs along with freshening up the entry way with new plants and flowers go a long way.
What about buying before you sell? Today we are in a seller’s market which means that sellers are reluctant to accept an offer subject to the sale of your home. A seller is more inclined to accept your offer if you have already accepted an offer from a buyer on your home and you are in escrow; with most, if not all the buyer’s contingencies signed off. At the least, you need to have your home on the market with a solid marketing plan in place with your realtor. You can buy yourself some time to look for a new home if you put your current home on the market with the stipulation that the sale is subject to you finding a replacement home. You may need to give some thought to selling your home outright and renting temporarily while looking for your new home. This way you can take your time to choose the home you want and not feel pressure to make a hasty decision.
If you need help with knowing the value of your home, determining your net proceeds or some tips on low cost, high return things to do to your home to ready for sale, please contact me,