Could buying a smaller new home be your best choice?

When we say smaller we are not talking about the tiny homes that are 300 square feet or less in this blog I am talking about downsizing from a much larger home to a home that is much smaller.  Some of the benefits to buying a smaller home could be…..

1.       Spending much less on the purchase price.

2.       Less taxes to be paid.

3.       Less time cleaning and maintaining the home.

4.       Paying less on utility bills.

How do you know when it’s time to downsize?

1.       Have your kids moved out and you may not need all the bedrooms and space you have?

2.       Would you like to keep your costs down?

3.       Are tired of cleaning and taking care of your larger home?

 Things to think about when downsizing.

1.       You will need to go through your current home and the stuff you have that you could give away, sell or throw away.

2.       Make sure that the design of your new home is open and functional so you can still enjoy your home.

Make sure to communicate with your Real estate professional to what you are looking for in your new property and what features you need along with what is your preferred location.  When you move into your new smaller home enjoy the extra time you have in doing some of the things you love to do.

Happy House hunting.

Peggy

What is Earnest Money when buying a home?

What is Earnest Money?

Earnest money shows that the buyer is serious and willing to commit money towards a home purchase.  In most cases you pay the earnest money at the time an offer is accepted.  The earnest money is credited to the buyers upon closing of the home.  The Earnest money is deposited into a escrow/trust account that is typically held by the sellers broker, title company or attorneys firm. 

Typically on average you can expect to pay 1-2% or the total purchase price although it could be more or less than average in some markets. 

What happens if the deal falls apart?

The money could go back to the buyer or seller.  It is not as simple as it sounds as both buyer and seller have to agree to who will get the money.  The money cannot be transferred until both parties agree. In some cases it may be split between both parties. The deal could fall through due to a home inspection issue, home not appraising at purchase price, sellers not able to deliver clean title or something else.  Additionally the buyer may have done something to cause the deal to end and the seller y be less likely to agree to the earnest money for instance if the buyers does something that causes their mortgage to be denied, they don’t work in good faith when working out repairs or just change their mind and no longer wan the house the sell may decide they are keeping the earnest money.  The real estate company, Title Company or attorney will hold onto the earnest money until both parties agree who gets the money or a court orders payment to one of the parties.