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More Baby Boomers Are Putting Up Their Homes For Sale in Favor of Downsizing to a Smaller Home: Here’s Why

Mature woman talking to financial planner at home

As baby boomers reach retirement age, many are considering putting their homes for sale in favor of moving to a smaller, more easily-managed home. In fact, researchers in a recent study by Edelman Berland found that 33 percent of homeowners who are thinking of selling their homes are also thinking of downsizing when they buy a home again. The reason for this is mainly due to the following benefits of downsizing:

Empty Nest to Cozy Home

More and more baby boomers are finding their homes are simply too large for them as they get older and their children move out of the home. Larger homes need more attention than their smaller counterparts, both in maintenance and in cleaning. As their children move out, they are finding it harder to keep up with, (especially because they do not have their children to help with home maintenance and other housekeeping!) A smaller home and yard are easier to maintain. By downsizing, baby boomers are also reducing the empty nest feeling that a large, but empty home can cause.

Monthly Savings

Often, downsizing a home also means lowering the monthly payment, if not getting rid of it completely. Homeowners can apply the difference in payments to their newer mortgage to pay it off more quickly. The reduction in a mortgage payment means many baby boomers are able to tuck more away for retirement. These savings can also help reduce the strain of living on a fixed budget. Additional savings can come from reduced real estate tax bills.

Freedom From Mortgage Payments

A huge benefit to downsizing is the option to use the money from selling your larger home to pay for a smaller one in cash. According to a recent study by Fannie Mae, only 37 percent of homeowners feel they have enough equity to make money when they list their homes for sale. However, that same study showed that 69 percent of homeowners actually have the equity to make a profit. Meaning, more people are able to do away with the mortgage payment altogether and free up a large chunk of the monthly budget, allowing boomers more options for retirement. And in a competitive market, having a cash offer can sometimes trump a higher offer with a buyer mortgage.

Retirement Options

Another popular option for boomers wishing to downsize is to split the profit from the sale of their older home between a smaller home and a retirement or vacation home in the area they plan to retire. By doing this, working boomers can continue to live near their jobs, while enjoying a vacation home. Once they actually retire, boomers then have the option to place one of their homes for sale or rent it out while enjoying retirement in their ideal location.

To learn more about the benefits of downsizing, both for boomers and other homeowners, or to find out about homes for sale in the Wayne, PA and surrounding areas, please contact the expert staff at Sage Realty at

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Read more about what our clients have to say

Hear from our Clients

  • "We were so pleased that a co-worker recommended someone in the area that she trusted. Boy, did we strike gold on all counts. You are amazing!"
  • "Instead of trying to take advantage of conflicts of interest, she puts the client's interests first."
  • "Linda is a hardworking, proactive and knowledgeable realtor. Throughout the process of finding and buying our new home, she was always responsive and kept us up to date on every detail."
  • "Linda and the group at Sage are the right fit. You won’t find more knowledgeable, prepared and professional agents."
  • "Linda and Tracey really know the Main Line area."
  • "Throughout the entire process we never doubted that she always had our best interests in mind. We wouldn’t consider anyone else when buying a home on the Main Line."
  • "From start to finish, Linda brought to bear a most helpful combination of experience, knowledge, attention and integrity on a somewhat complicated transaction. There was never any doubt that she represented our interests."
  • "Her knowledge of the area helped us quickly narrow our search and ultimately scored us an amazing home in an incredible neighborhood."
  • "It is hard to trust when you are not sure of the rules of the game. Working with Linda made us feel like we were family. Linda took her time to relay and explain everything in detail."
  • "Linda’s honesty and real estate savviness made for a wonderful home buying experience!"

Read more about what our clients have to say

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