With property values continuing to rise particularly in the single-family home market, this could be the time to consider downsizing. Perhaps the kids are off to college now or you simply have more home than you need? Depending on the market you live in, downsizing could offer plenty of savings. A recent study by StorageCafe found homeowners in the 20 largest U.S. metros could save an average of $194,000 when downsizing from a four-bedroom to a two-bedroom home. Of course, in some markets the savings are even higher.
Study design and results
The StorageCafe study looked at the difference between the value of a four-bedroom home versus a two-bedroom home in each metro. In addition, it also took into account property taxes over 10 years, as well as closing costs for selling and buying both properties. With home values being so high in the state of California, it is not surprising that the top 3 cities listed in this study were from The Golden State. The top 5 locations along with their respective average savings were as follows:
- #1. San Francisco-Oakland-Berkeley: $406,000 savings
- #2. San Diego-Chula Vista-Carlsbad: $264,700 savings
- #3. Los Angeles-Long Beach-Anaheim: $239,800 savings
- #4. Seattle-Tacoma-Bellevue, WA: $234,500 savings
- #5. Miami-Fort Lauderdale-Pompano Beach, FL: $233,700 savings
Of course, downsizing is not a great option for everyone. However, if you are in South Florida and have been considering downsizing your home, the most profitable route is from a 4-bedroom home in Miami to a 2-bedroom home in Pompano Beach. On average, this move can get homeowners almost $290K in savings. If you are downsizing from Miami to Fort Lauderdale, the average savings comes out to be about $150,000.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!