3 Financial Advantages to Downsizing in a Seller’s Market

Article written by Michelle Johnson

New family homes keep getting bigger in the US. In fact, recent research shows that the average size of a new home is 2,700 sq. feet! 60 years ago, families were larger, but homes were smaller (averaging about 1,000 sq. feet). Today, about 1 in 3 homeowners who are thinking about selling are making plans to downsize. Let’s explore three financial advantages behind this current trend to lock in a lower cost of living.

3 Reasons to Sell and Move into A Smaller Home

  1. Save for Retirement – Selling a large home and moving into a smaller one with less of a mortgage could be all that you need in order to save up a nice retirement nest egg. Cutting your mortgage payment by $500/month could give you hundreds of thousands of dollars just 30 years from now for your golden years. Cha-ching!

  2. Pay Your Home Off Faster – If you are in a larger home with a 30-year mortgage, you may be able to cut your loan length in half by downsizing. In fact, if your Oregon home sells for a premium or you have a smaller pay off, you may even be able to buy a smaller home outright and be mortgage-free!

  3. Less Maintenance – Larger homes require more maintenance. From cleaning to yard work, you can save a lot of time by downsizing. Plus, replacing a roof or siding on a large home will cost much more than on a small home, so you save even more in the long run, not to mention the attractiveness of a more simplified life.

Considerations Before You Take the Leap into a Smaller Home

Before you decide the financial rewards are too good to pass up, here are a few things to ask yourself when considering downsizing.

  • Do I Have Any Equity in My Home? – Even if you don’t, selling a large home and buying something with a lower monthly payment will still decrease the financial burden and help you save for the future. But if you do have equity, it can allow you to put down a large down payment or even pay cash for a home.

  • How Will Downsizing Change My Life? – You may need to get rid of a few things to move into a smaller home, but many find that they don’t miss what they had to give up. In fact, many feel unburdened with fewer possessions and less to take care in exchange for more time to relax or even travel.

  • How Small Should I Go? – This needs to be answered on a case by case basis. For example, if you have teenagers, they may all need their own room in order to be happy. Plus, you need to consider how much equity you have in your home when budgeting. There’s no point in downsizing and still having a massive monthly payment  (although it may also save you interest money in the long run if you have a shorter mortgage length).

  • If It’s a Seller’s Market, Won’t I have to Pay a lot, even for a Small Home? – Not necessarily. First of all, if you have enough money from selling your home to pay cash, a Seller may find your offer very desirable. Second, it depends to a great degree on where you are looking for a home. Sometimes, it’s just about finding the right seller, which can come down to having the right agent in your corner assisting in your home search.

Learn More About Downsizing Today!

If you want to sell your home and find something a little more manageable, contact me today to schedule a Complimentary Discovery Session. This is your opportunity to talk with me directly and ask questions. We’ll explore what’s going on in the current Portland Seller’s market and discover together if now is the best time for you to downsize.


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Michelle Johnson
Licensed Oregon Realtor
Park Place Real Estate
Direct: 503.320.5141
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