Today’s real estate market can sometimes be a tough nut to crack. You may find it hard to sell or buy a house every once in a while, but not always. That is why seeking the services of an experienced real estate agent is always recommended when buying or selling a home, especially if it’s your first time. In this case, what should you do after selling a big house successfully? What else should you consider as far as buying your next home is concerned? Are there any pitfalls you must avoid? Read on to find out more.
Take a short-term approach if you find yourself in a seller’s market. In simple words, put your house up for sale if and when the market is in your favor. This will give you time to explore all the options you have after cashing in on your home. You may not know it but renting will allow you to get a realistic and clear sense of the amount of space you need. It will also allow you to focus on other things such as garage space, outdoor space and other amenities you may want to prioritize in your next home purchase.
You probably want to have a home at the beach or deep in the woods, but your big house prevents you from achieving this dream. In this case, consider renting a smaller home or even an apartment to free up some money for an easy down payment of your dream home. If the rent you pay is close to your mortgage deductions, you enjoy plenty of savings because you will no longer have to maintain a big house.
Consider Buying A Condo
Chances are you will have enough money to buy a condo in cash after downsizing. This means you will only be left with association fees and monthly property taxes to worry about. Remember that most, if not all, condo owners usually enjoy low home maintenance expenses with shared services like snow removal and lawn care. Many condo developments also have swimming pools or club houses for entertainment.
Buy A Smaller House
This mostly applies if you are alone or if it’s just you and your spouse. Why buy another big house when it’s just the two of you living in it? There are a few salient factors you must consider though. If you’re both aging, you might want to live minutes away from basic amenities like health centers or shopping malls. You may also want to consider taxes and other expenses which should make your life easier after downsizing.
Buy A Multi-Family Home
Find out how many residents in the location of your potential new home are renters, then buy a multi-family home if the conditions are right. It may look like a single-family home from the outside, which is fine. On the flipside though, you will have a chance to make some money as a landlord. This will go a long way to help you cut down the cost of running your home.