5 Hidden Costs of Downsizing Your Home

Homeowners opt to downsize for varied reasons. Along with retirement and empty nesting, having ample savings is one of the most common.

Yes, downsizing can save you big bucks, only if you did it right. On the flip side, if not carefully done could cost big, too.

Make sure to plan for your big move towards a humble and simpler life. To help you, we’ve listed here five nasty expenses that might drain or steal your savings, so better watch out.

The Home Buyers Federal and State Capital-Gains Taxes.1. Federal and State Capital-Gains Taxes

As a home seller, it is your obligation to pay the capital gain taxes. This expense is commonly neglected, wherein fact should be given a serious attention because it cuts a big portion from your profit.

The IRS has a calculation to derive the capital gains but it’s best to check with your tax adviser to know in advance how much the Federal will cut from your net profit.

Usually, married couples filing jointly can save $500,000 while singles can save as much as $250,000.

It’s also worth taking note that you will pay tax for a new property, in case you buy one. But, if you are a retiree, you’ll likely get a senior discount. Ask your advisor to know if you are qualified for the price cut.

The Home Buyers Maintenance2. Maintenance

There could be a lot of legwork to do to spruce up your house. But this is something you need to deal with if you want to sell your house fast at utmost value.

So before you put your house out in the market, it’s necessary to make repairs and improvements. Take a stroll in your home and check for areas that need a cosmetic makeover. Then, assess if you can do DIY improvements or you need to hire a professional to do the job.

Just like perking up the home’s interior, working on your curb appeal is equally important. A welcoming curb attracts more buyers so, upgrade the front door, light fixtures, mailbox, and landscape to make it more appealing.

However, in some cases, homeowners skip the landscaping because it’s a big and tedious task. And for retirees, they don’t have the oomph to do it anymore. But, if you skip this step, you are letting the big bucks slip over your hands because according to Virginia Tech, a beautiful landscaping can augment your house’s worth by 12%.

Read: 10 Things You Should Prepare to Sell Your House Fast

The Home buyers Relocation3. Relocation

Relocation can be a pain, not only in the ass but also in the pocket. Hiring a professional mover can cost as much as $13,000. So make your move strategic to limit the expenses.

Summer is when the relocation rush comes in. And along with this rush is a surge in pricing for movers. Therefore, relocating on summer is not advisable.

Instead, plan your transfer during winter or midmonth, when people are still occupied with other personal stuff and the request is seldom.

Request a quotation from at least 3 different companies to choose which has the best offer. And this gives you an overview of who provides an insurance coverage for fragile items.

A local relocation is charged by hours. So secure and prepare all your assets in a box beforehand for a seamless transfer. The fewer questions ask, the faster the transport is.

On the other hand, if you are off to a long distance move, make sure to declutter. This will shave costs since this type of move charged based on weight.

Good thing if your friends and family are willing to help, but if there’s none, it’s best to consider paying for a relocation service.

The Home Buyers Storage4. Storage

For some homeowners, parting with their properties is easier said than done. As a result, they pay for a storage space to accommodate their assets. However, in a long run, could cost you a lot.

When you want to downsize, take only the things you can’t live without. Get rid of the items that will just clutter your new space. Save it for new mementos.

Cut down your belongings through a garage sale, send them as a donation, or give them to family and friends.

The more simplified you are, the better. Moreover, the less you spend for movers.

The Home Buyers living expenses5. Living Expenses

Expenses are incurred not only before you downsize but also after you have relocated. So, prepare for your new living expenses.

Homeowner association charged fixed, which makes it is easier to budget, while other living expenses will just knock on the door without you knowing.

Get a feel of your new community. Visit supermarkets, shopping centers, and restaurants. And if you have friends living in the place, it’s best to ask them.

These are only a few of the nasty expenses you need to take care of when downsizing. But whatever your reasons for downsizing are, ensure to cut your expenses to leave savings for your future needs.

But if you don’t want to spend time, effort, and money for this big change, you can sell your house fast to The Home Buyers.

We Buy Houses fast in Washington DC to Help You Downsize Fast

Downsizing should not be a tedious work and you should not throw your money out of the window for a simple lifestyle. Instead, enjoy your new life in your humble home with ample savings in the pocket.

How? Sell us your house!

We buy houses in Washington DC or anywhere in the US in just a week or less. You don’t need to spruce up your home because it doesn’t matter anyway. And, we don’t mind if it is old, ugly, or needs a total renovation, because we buy houses as-is.

Send us your home details so we can send you a fair and square quote as soon as possible.

Contact The Home Buyers Now!