5 reasons to consider downsizing

According to the National Association of REALTORS® (NAR), nearly 70 percent of homeowners over the age of 65 have paid off their mortgage, allowing them more options than younger homeowners. With equity built up, the ability to sell for a profit is more likely for this demographic, who can then choose to spend their earnings however they choose.

Here are five reasons you should consider downsizing your home this year.

Buy a smaller home with cash

Some homeowners will find that by downsizing, they can earn enough to buy a less expensive home in cash, and end up mortgage-free in a new abode. NAR says this is a very common route for those nearing retirement. Last year, homeowners between ages 55 and 74 who sold their home for a median price of $250,000 went on to purchase a home that was worth a median price of around $215,000.

Less time and money spent on upkeep

Larger family homes can take up tens of hours a week to keep up and cost more to cool in the summer and heat in the winter. Those who raised families may find that the three-story home they needed in the past is impractical now. NAR’s data supports this, showing that the median size home purchased by those over the age of 55 was between 1,800 and 1,930 square feet. This is a major downsizing from the age group of 35-44 years old, whose median home purchase size was 2,600 square feet.

Embrace the now

Many homeowners will find that their four bedroom split level was great for raising a big family, but now they tend to use their home for weekend visitors and casual get-togethers. The right home for this new lifestyle may be an open floor plan that includes guest quarters and attached bathrooms instead of many smaller bedrooms and bathrooms. Last year, NAR found that homeowners over the age of 55 had a median of three bedrooms and two full bathrooms. Great rooms also tend to replace living rooms and dining rooms — and larger, eat-in kitchens are common to save space and keep the floor plan open.

Look forward

Last year, NAR reported that 13 percent of buyers over the age of 50 purchased senior-friendly homes or units in active senior communities. In many cases, then, this age group is not only planning for the “now,” they are also planning for the future. One-level homes with open floor plans, larger rooms and wider hallways prove to be great not only for entertaining guests, but they also will be wheelchair and senior accessible in the future.

Gain flexibility

Last, and perhaps most importantly, it’s finally your time to choose. By selling your home, you can regain the flexibility you gave up as you pursued your career and family aspirations. Many approaching retirement in Lexington and Central Kentucky are looking at a downtown condo and a summer rental out of state. Others are looking at townhomes with modern conveniences and a homeowner’s association that handles basic yard and sidewalk maintenance. Still others are wondering if it’s time to retire full-time to the lake home that has been a precious summer escape. Now, unlike any time previously, you can make the choice that best suits you, and no one else!

Great gifts for new homeowners

Here are some thoughtful and easy gift ideas for you to consider if you know young or first-time homebuyers purchasing in Lexington or Central Kentucky (or…maybe you ARE one and could benefit from some gift ideas to share with generous friends and relatives!).

Moving day pizza or local restaurant gift cards

Whether you’ll be helping on moving day or not, consider sending a pizza delivery to the new abode on the night the buyers will be moving in. While a surprise would be fun, it’s best to let them know in advance so they can plan for it. If you’re delivering pizza or dinner in person, bring a set of paper plates and napkins (and maybe a chilled bottle of champagne) so they create a memory they’ll never forget.

An alternative to this plan is to give a gift card to a new local restaurant they can try out in their first few days or weeks in their new area. Check out reviews in advance so you know you’re sending them somewhere great!

Hardware store gift cards

Even the most perfect new house will have a few idiosyncrasies, and you can ease a homebuyer’s burden by giving them a credit to a local hardware store. Big-box stores like Lowe’s and Home Depot are perfect for handy homeowners who have big projects they want to complete.

For those who may need a bit more guidance and who will be tackling smaller projects, a local hardware store gift card works well. If they need a photo-hanging kit, the section at their local Ace Hardware may be less intimidating than the full aisle of options at a larger hardware store.

Address label changes

Buyers often overlook the need for new address labels or an address stamp so this is a great idea they won’t be expecting. Online sites like Zazzle and Shutterfly have dozens of affordable designs available.

Plants

Most homeowners have plenty of picture frames from their previous residence, but they may not have indoor plants to jazz up the décor. Consider the size of their new home and their style as you select planters and plants.

Sheets, linens and towels

Linens of all kinds — bed sheets, pillow cases, comforters or quilts — will always be appreciated for new bedrooms. Extra towels, whether for the bathroom or kitchen, are also a great gift. Consider giving a gift receipt so they can exchange for the colors or types they prefer.

Homeowner essentials

When you’ve lived in an 800-square-foot apartment, extension cords may seem like a laughable item. Homeowners, on the other hand, will know that items like extension cords, power strips, extra light bulbs, cleaning solutions and even duct tape are must-have homeowner essentials. Deliver a small package of these items within one week of their move.