Your family has grown up and moved on. You’re looking at retirement, and/or you find finances a bit tighter. Is now a good time to investigate the possibility of downsizing your home? Consider the factors below to help you decide:
Smaller homes in the Las Vegas areaare a hot commodity right now, while the larger, more luxurious homes are selling well to investors. Your current home may sell just fine, and for close to (sometimes even above) your asking price. (See “Could your home start a bidding war?”) But, you may end up paying more than you thought you might for your smaller home because of the higher demand for smaller, “starter homes” right now. We can help you determine the best move.
Sure, a smaller home may come with a smaller mortgage – depending on many factors. Things to consider include the location, amenities, and age of the home you intend to purchase.
Remember, your mortgage is both principal and interest – will you get a lower interest rate? Chances are, assuming that you have not recently refinanced, you will see a drop in interest. Rates are still very low!
Even if your new home is smaller, will the property taxes be less? Moving to a new area may also drastically change the amount of the property value, even if it is on a smaller plot. Some areas are assessed higher because they are more centrally located, have higher school/fire/police bonds, or are just more desirable.
Usually the utilities will be less in a smaller home, but check into the average cost in your prospective neighborhood. If your current home uses a gas stove and furnace, for instance, but your new home is all electric – you may not see much benefit. Older appliances may cost more to run. Your newer home may be better or less insulated than your current home. All of these things combined could lead to either a pleasant or very unpleasant surprise. A little bit of research could save you from such revelations after the fact.
Ask your insurer what differences may occur. Moving to a smaller home that is viewed as a higher-crime area (even if your particular street seems safe) may actually increase your insurance costs – both for your home and for your vehicles. Also consider the affect it may have if you no longer have a garage or a driveway (or if you are adding one). The results could go either way.
Other costs to consider:
Home Owners Association (HOA) dues.
Letting go of or adding landscaping or maintenance services.
Distance from shopping and your other normal activities.
Distance from public transportation, medical facilities, schools, and/or parks.
While this may seem like a lot to look into, it will save you from headache in the long run. Overall, rates are still fantastic and the market is revving up – so call today for a consultation. 702-845-8540