Rafaela Hsu Rafaela Hsu

It is that time of year again when a lot of homeowners all over the country find themselves in the position of having to start a new chapter in their lives, which we like to refer to as the empty nest.

Even though there are many different reasons as to why a homeowner may find themselves without a “nest,” such as going to college or starting a new job or a new career, homeowners who suddenly find themselves in a large but empty house are frequently confronted with the heavy burden of deciding whether or not to downsize to a smaller home or keep the house as is.

Should we continue to live in this house as it is? Should we remodel it to meet our changing needs? Or should we downsize to a smaller home?

If you do find yourself in this position of having an empty nest, know that there is no one answer that is universally correct. However, there are a few things that you should take into consideration.

Finances

When it comes to deciding what to do with an empty nest, money is always a major factor in the decision-making process regarding real estate, and this is especially true when it comes to deciding what to do with yourself. Naturally, remaining in a home can result in the accumulation of equity; however, what about taking advantage of that equity? The profits could be sold and invested, which could result in even greater returns. A home that has been renovated or remodeled may have a higher initial cost, but it may be worth it in the long run when it comes time to sell the property.

There is a high probability that downsizing will result in cost savings when it comes to the expenses that are associated with a larger home. Consider the fact that a smaller home ought to result in lower monthly utility bills, taxes, and insurance premiums, right? There is a possibility that purchasing a smaller home will result in a reduction or elimination of the monthly mortgage payment.

There is no question that maintenance and finances can go hand in hand with one another. Again, a smaller house ought to have lower maintenance costs than a larger houses. On the other hand, if you have owned your home for an extremely long time, you might have the maintenance down to a science that is affordable. A home or condominium owners’ association that would cover maintenance issues could be established as a result of downsizing; however, the fees incurred by the association might be higher than what you are accustomed to paying. Be sure to take into consideration the maintenance issues that may have an impact on your situation when you find yourself in the position of having an empty nest.

Health & Wellness

Although health may not be an immediate concern for many people who have recently become empty nesters, it is typically one of the factors that plays a role in determining what they should do about their living situation at some point in the future. A person who has reached the point where they no longer have children in their household must take into consideration whether or not their current residence is able to meet their requirements in terms of health care.

When it comes to making a decision, there are a few questions that can be helpful to an empty nester. Is it simple for them to navigate and maintain their current residence? Would there be any family members or friends in the area who might be willing to lend a hand? Would it be possible to make some renovations to the house in order to accommodate changing health needs, or would it be more beneficial to downsize the house entirely in order to alleviate any health concerns that they might have? When it comes to empty nesters, there is no correct or incorrect response; rather, there are a multitude of things to take into consideration when the time comes.

Lifestyle

“Logically, empty nesters are the most likely group to sell big homes and downsize: They no longer have children living at home and don’t need as much space. The problem for younger families who wish their parents’ generation would list their big homes: Boomers don’t have much motivation to sell, financially or otherwise. They typically have low housing costs, and the bulk of boomers are only in their 60s, still young enough that they can take care of themselves and their home without help. Still, some boomers are ready to downsize into a condo or move somewhere new for retirement, and the mortgage-rate lock-in effect is starting to ease–so even though there won’t be a flood of inventory, there will be a trickle.” said Sheharyar Bokhari, a Senior Economist at Redfin.

Last but not least, for some newly empty-nesting parents, their new living situation means one thing: freedom. Downsizing could be the simple solution for people who have a passion for traveling and do not intend to spend a significant amount of time at home. Those individuals who are more of a homebody and who take pleasure in regularly hosting their friends and family or being involved in their community may find that staying in their home or renovating it to accommodate their new circumstances is the most suitable course of action.

When it comes down to it, the circumstances surrounding the departure of children are unique to each individual who is an empty nester and call for a different course of action. Three potential courses of action that empty nesters might take into consideration are staying, renovating, and downsizing.