The corporate world has relied heavily on the tactic of downsizing to help them survive the economic downturn. The heart of the tactic is how can I get the most utility out of the least expense. Selling under-performing assets, dropping lines of business with shaky track records, re-sourcing supply chains with lower cost options and, most painfully, cutting the greatest “controllable” expense, personnel. Leaner companies are poised to use the resources they saved to grow again, once new opportunities rise from the ashes of the downturn.

The kids have grown up and moved out? Just Retired? These people have the option most obviously before them and it’s nearly always made sense. In the evolving economic environment we live in, a few years ago, Savvy homeowners of all ages started
looking at ways to save monthly expenses. Our Family Motto is “Buy Once, Buy Right.” Ask yourself the right questions and envision what you truly need and want. How much can I save on my mortgage if we had a house with less acreage? How many bedrooms do I really need?
Do I really need an in-law apt when my kids are young and my parents aren’t even retired? See a qualified real estate agent who can guide you with a few more questions. You see, the downsizer is hunting for a more precise fit for their current/future lives and lower monthly expenses. As the economy further evolved to it’s current painfully slow recovery, Downsizing’s become a way to stave off the pain and the long lasting stigma of foreclosure.

Constantly soaring food and energy prices, high gasoline costs, huge maintenance service costs(Landscape, home improvement, etc) not to mention taxes, all add to the cost of living. First step…Just taking a peek at these expenses can save you money each month. There are simple common sense activities that you can do affect those costs. Take it to the next level, now. Differing markets have differing costs. Check out surrounding towns for costing info on everything from food to electricity to heating oil. Cutting down from a 3000 sq ft home to a 2000 sq ft can cut tax expense by a third in some jurisdictions. These savings can add up to hundreds monthly.

For most of us, the biggest scariest expense in our lives is our mortgage. Lending guidelines years ago referred to the 30% rule: If your mortgage was more than 30% of monthly income….You can’t afford it. Less than a 25% down payment, You’d get smiles and laughter just for asking. With current products available now, the ratios are way lower…and riskier. Banks under-managing those risks got us into the current crisis. Banks over-managing them are prolonging it. Put the tactic to use on your side. Figure out what you can really afford in the current over-managed marketplace. Contact a bunch of mortgage brokers and see what they offer. If you can qualify for a mortgage now, most likely, you’re getting a mortgage you can afford. Then hunting for the right deal might have you switching from your over-sized, over-expensed house to a cozy new home, fit precisely to your actual needs, if not wants, with quite a few bucks profit in your pocket from the downsizing. Market prices differ town to town. Similar properties can be thousands less just across town lines. Remember cost of living earlier? Same thing. Use your research to combine the savings.

Think about it. Smaller house = smaller routine expenses. Less space to paint. Don’t need the landscaper anymore. Less space to heat/cool. Routine Chores and maintenance take less time too. Buy Once, Buy Right. Plan out what you can afford. Plan out what you need. Compare costs regionally, instead of a specific town. Lastly pick a property and research that. A designated real estate agent representing you is a serious asset for guidance and info throughout the process.

Even if you’re search is just informational, It can still be a blast to see new houses, new decorating tips, meet new people…Have Fun!

Lew McConkey
Focused on Home Buyers and Sellers in Brockton, Abington, Whitman, Hanson, Halifax and East Bridgewater

Rosen Realty
(781)252-9789
Lewmcconkey@rosenrealty.com