If you are approaching retirement, you may already be thinking about how your life is going to change. One thing that many retirees consider is selling a home in Knoxville to downsize into a smaller property. As your lifestyle changes, you may find that your current property no longer fits your needs. If your children flew the nest long ago, it may be too big for you to hold on to. Or do you intend to spend some time traveling and feel a smaller home base is more efficient? The good news is that you can free up some equity when selling a home in Knoxville in preparation for your retirement.

Let’s take a look at a few of the things you need to take into consideration.

How Long Have You Owned Your Home?

According to the National Association of Realtors (NAR), the average time people stay in the same home is a little more than nine years. This is a significant increase from the previous average of 6 years between 1985 and 2009! When you live in the same property for a long time, your life will surely go through some changes as you meet various milestones. The home that was a perfect fit nine or more years ago may no longer suit your needs. If this sounds like you, then it is definitely time to start thinking about selling a home in Knoxville and finding a more suitable property.

Consider the Equity You Have Amassed

If you have lived in your home for several years, there is a good chance that you have started to build up a reasonable amount of equity that can be used to help you move elsewhere when you are selling a home in Knoxville. As you pay down your mortgage, you gain more equity, so the longer you have owned the property, the more equity is accrued. According to data from the Federal Housing Finance Agency (FHFA), a typical homeowner who lives in the same property for five years can expect almost a 60% increase in the value of their home. However, a homeowner who has owned their home for 30 years can see it triple in value! If you are considering selling a home in Knoxville to downsize or move closer to family, equity will be a great advantage.

What Is Equity?In simple terms, home equity is the portion of your home that you own. In other words, the difference between the value of your home and the outstanding balance on your mortgage.

Why Choose to Downsize?

So, now that you know you might have all of this equity at your disposal, why would you choose to downsize when selling a home in Knoxville? Let’s take a look at a few of the benefits that make it an attractive option for many retirees!

• Financial Freedom - Now that you are not tied to the daily grind of working life, you might have some bucket list items you want to check off your list. Downsizing to a smaller home is going to allow you to unlock some of the equity currently tied up in your property to fund your plans. Even if you don’t have plans for a grand adventure, the equity could also come in useful to supplement your retirement income and cover healthcare expenses. You will definitely want to consider this when selling a home in Knoxville when you reach retirement age.
• Reduced Expenses - Larger homes mean larger bills! When you look at the difference in the cost of property taxes, maintenance, insurance, and even utility bills in a smaller property, you might be surprised at the potential savings. Moving to a smaller home can reduce your living costs, giving you a more comfortable retirement. This is something you will really want to consider, especially if there are rooms in your home that are not even being used!
• A Simpler Life - Even putting the cost of maintenance aside, selling a home in Knoxville to move to somewhere smaller can also make life simpler for you. Smaller homes take less time and effort to maintain, giving you more time to enjoy your life without being bogged down in household chores!

Selling a home in Knoxville in order to downsize following your retirement, using the equity in your current home could work to your advantage. Work with a full-service real estate agent who can help to guide you through the process.

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Wright Realty is a full-service real estate concierge with a wholistic approach to buying and selling property in East Tennessee. We are your trusted advisor and keep open communication throughout your entire buying/selling process. Real Estate done "Wright" means more than just a 'transaction'.

Finding Your Property the "Wright" Way!

Visit www.realtydonewright.com or call 865-556-8599