Before You Move, Make Sure You’re Solving the Right Problem
Lately, my phone calls start the same way: “Jacquie, we’re thinking about moving.”
Why? We need to downsize. We need more space. The house doesn’t work for us anymore.
Whenever I hear this, I ask a few more questions.
What’s not working?
Why isn’t it working?
Do you love your location?
Where are your friends and work?
Most people answer the same way: “We love our neighbourhood. We want to stay, we love it here. We need a new house.”
Then we talk about the house.
What’s wrong with it?
“The kitchen feels dated.” “We need another bathroom, more space for the kids to hang out.”
Before we call the Realtor and put a sign on the lawn, I think it’s worth taking a closer look.
Are we solving the right problem?
One of the best investments you can make before deciding to move is spending a few hours with a professional space planner or designer. These professionals see opportunities most of us don’t. They can re-imagine a floor plan, improve flow, or uncover unused space. A redesigned kitchen, an additional bathroom, or a reconfigured bedroom can completely change the way a home feels, without changing the address.
Then it’s time to look at the numbers.
Suppose your current home is worth $500,000, and you’re planning a lateral move into another $500,000 home. Here’s a picture of what selling can look like:
Selling your current home
- Realtor fees (5%): $25,000
- HST on Realtor fees: $3,250
- Legal fees: $2,500
- Preparing the home for sale: $3,000+
- Moving costs: $3,000+
- Pizza for the helpers: $200
Buying your new home
- Land transfer tax: $6,475
- Legal fees and closing costs: $3,000+
- Home inspection: $600
- Appraisal and any applicable lender or broker fees
Before you’ve unpacked the first box, those costs can easily approach $60,000. And this is based on a lateral move.
Now ask yourself a different question.
If you were already prepared to spend $60,000 moving, what would happen if you invested that same money into the home you already own?
The answer is different for everyone.
Having an open, honest conversation, one that considers all the possibilities, including the possibility that your current home might already be the right home, can make the choice much clearer.
If moving has been on your mind, let’s talk about what makes sense for you and your family. And if you or someone you know feels uncertain or overwhelmed about where to start, call me.
