As a homeowner, there will come a point in time when you’re ready to move on from your current place in exchange for something smaller and more practical.
Downsizing, like any type of move, comes with expenses. However, the lifestyle and financial advantages of downsizing can make it well worth the investment.
If you’re looking to trade your current home for something smaller soon, this blog is for you! Keep reading for tips on building a financial plan for your downsize.
Helping your parents sell their Oakville home? Click here to read my blog about supporting their downsizing journey.
What Does it Cost to Downsize Your Home?
From a real estate perspective, downsizing is a unique process. Rather than just buying or selling one property, you’ve got two separate transactions to navigate. This is where most of your downsizing expenses come into play.
Both selling your current home and buying your next one will come with certain costs. As a downsizer, you’ll want to be prepared for these expenses so you can budget accordingly. Because every downsizer is unique, the exact costs of your move will look different than someone else’s – and be dependent on the finer details of your purchase and sale.
Looking for more advice about downsizing your home in Oakville? Read these related blog posts next.
- How to Downsize Your Oakville Home
- Should I Retire in Burlington or Oakville?
- How to Find the Best Oakville Real Estate Agent to Sell Your Home
Selling Costs as a Downsizer
During the sale of your current home, the biggest expense you’ll want to account for is agent fees or commission. Working with an experienced real estate agent (ideally one who specializes in downsizers) is essential, but it does come with a cost.
Rather than charge a flat fee, most real estate agents in Ontario have a set commission rate. Every agent is different, however, you’ll find that most professionals’ rates fall within the 3% to 8% range.
Bonus tip – Keep in mind that an agent’s commission is typically reflective of the skill they bring to the table. As the pilot of your home sale, your Realtor will have a big impact on your final sale price. Choosing the cheapest agent may seem like a good idea at first, but it can seriously hurt your returns.
A few other potential selling costs to look out for include:
- Repairs or upgrades
- Staging
- Legal fees
- Mortgage penalties
Buying Costs as a Downsizer
Next, let’s look at the costs of buying. Once you’ve sold your current home, it’s time to find the perfect place for your next chapter. As a buyer, you won’t need to worry about real estate agent commissions this time around, but there will still be some significant costs to account for.
Of course, as a buyer, your largest cost will be the property itself. This means paying your deposit and down payment upfront while the rest goes on your mortgage.
Other common buying costs include:
- Land transfer taxes
- Mortgage Insurance
- Legal fees
- Homeowner’s Insurance
- Home inspection
- Condo fees
Thinking about downsizing in Oakville, Ontario? You may find these blogs helpful!
- Should You Move to Oakville if You Work in Toronto?
- Steps To Buying A Home in Oakville, Burlington, or Mississauga
- Is Oakville a Good Place to Live?
Storage & Moving Costs
As a long-time homeowner, you probably have a fair amount of belongings. However, when it’s time to move into a smaller place, you won’t be able to bring it all with you. Decluttering is an essential part of downsizing. While there will be plenty of items that you sell, donate, or throw away, there will also be lots that you hang on to.
With that in mind, you may choose to invest in a storage locker where you can safely store items that you no longer have room for. In Ontario, you can usually find a nicely sized storage unit for a few hundred dollars a month.
Once you’ve decided what to keep, you’ll need to move everything from your current home to your new one. This means hiring professional movers. If you haven’t moved in a long time, it’s easy to forget how intensive the process can be. As a real estate agent, I always recommend hiring professionals rather than going the DIY route.
Moving costs can differ depending on how much you have and how far you’re travelling. However, most moves usually exceed the thousand-dollar mark.
Downsizing? I Can Help!
I’m a real estate agent with more than 30 years of experience – directly specializing in working with downsizers in Oakville and surrounding communities.
Using my time-tested selling techniques, I can help you prepare and optimize your home for today’s market – ensuring maximum results with minimal stress. Looking ahead to your next purchase, I’ll help you identify properties that align with your new goals, and find the neighbourhoods that speak to your ideal lifestyle.
When you’re ready to downsize, I’m ready to help.
Get in touch with me at stacey@staceyrobinson.com or call 905-346-8188.
At Your Service
I’m here to guide your real estate venture with an education to empower you. Let’s chat about what your needs, and I’ll tell you how I can help you meet them.
