The goal for people downsizing is that they are going to sell their larger current home and downsize into a smaller less expensive home and here’s the goal – to have lots of cash left over that can go into financing their retirement. That would be my goal for you too!
Hi I’m Ines Gomez acebo broker and owner at Iga Lux Homes, and I specialize in helping you downsize out of your current home and right-size into to your new home here at Miami’s upper east, miami shores and el portal 33137,33138 and 33150
So let’s look at the financial side of downsizing.
One of the first key factors that you need to know is – what’s your home worth? Knowing this value sets you up so that you can make informed decisions. Knowing the value is a crucial element, which means you need to have professional help you with this. You can’t rely on online estimates. You should get an evaluation from either a reputable Real Estate Broker or hire an appraiser. A Real Estate Broker should be able to give you suggestions on some small inexpensive tweaks that you can make that will help maximize your home’s value.
You will also need to calculate what your replacement home will cost. Home prices including condos vary in price depending on their location, condition, size, etc. I’ve had several clients who have taken advantage of Miami’s higher property values, and have moved out of the area or out of state to significantly less expensive places to live. I recommend that if you are moving out of the area, to someplace that you are not super familiar with, that you consider renting for a year. It would be a costly mistake to buy in a new area and then you ended up not loving it. I wouldn’t want that for you. If you are staying local in the area, we can help you determine what areas and housing would be a good fit for you.
You will also want to consult with your tax professional regarding any tax consequences you may have from selling your home. In general if you’ve lived in your home 2 out of the last 5 years, a single person can take up to $250K in tax-free gains, and a married couple can take $500K. So that’s pretty cool!
Here is a link to a downsizing calculator so you can figure out how moving changes your finances.