Real Estate: Are You Considering Downsizing?
There seems to be a trend over the last few years of buyers, and builders, downsizing. If you are one of those considering a move to a small property, there are a few things you need to be aware of first. The most important is the market in general.
We often quote the phrase, ‘it’s a buyer’s market’ and there is good reason for this – it is. However, that is the market in general. With a general trend to downsizing, there are a lot of larger properties on the market while the demand, where it exists, is for small properties. This has a significant affect on house prices. Low demand for larger properties means lower prices for those properties. Proportionally, the larger demand for smaller properties means they are at least holding their own – you will certainly struggle to find a ‘bargain’ when it comes to a smaller property.
You can help yourself, however. First, ensure the property you intend selling is in the best possible condition. Don’t leave open any opportunities for potential buyers to try and negotiate a significant drop in the sales price. Secondly, price your home fairly and stick to it. Don’t overprice then start to step the price down – it sends the wrong messages.
When looking for your new home, take your time. Find at least two or three homes you like and start negotiating on the first. If you cannot come to an agreement, move on to the second home on your list. Just remember, you are not the only one in the market for a smaller home. There is not a flood of home buyers competing, but the trend is for smaller homes so that is where your competition is.
On the flip side, if you’re looking to upsize, the market has never been better with plenty of properties available and much less in the way of competition. Do you really need to downsize? Perhaps upsizing is where the real bargains are at present.
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