Small and Perfect: When too big is too much

by Kathryn Godby Oram

In the US housing market, having the best has always meant having the biggest. The recent market correction has lead many to doubt that adage.

Perhaps the best is; what you can afford, fits your stuff, and keeps out the rain, snow and wind. Luxury does not have to mean large. A well designed smaller home can be more enjoyable and more cost effective at the same time. Think about how you live your life in and out of your home. Take stocks of your needs and list them against your desires. Decide what you can do without. Why is the smaller house trend growing in popularity and what does it mean for you as a buyer?

According to the AHBA 59 % of Baby Boomers say that they want to move to a smaller, one level, more convenient home. With boomers driving the market and young families taking a back seat, the demand for smaller, reasonably priced homes is climbing. Many boomers would like to remain in their current homes but cannot due to finances, inefficient layout or maintenance worries. This trend, pushed by the market’s biggest buyers, is affecting how and where builders build. If small, perfect and efficient is the new “must have” then perhaps the era of the McMansion with a too big kitchen and no money left for furniture is over.

The recent downturn in the economy has every American, young and old, re-thinking their finances. For most of us, our home is our biggest expense. Disposing of old norms and re-envisioning homes that are better suited to efficient living can allow all consumers to enjoy beautiful surroundings at a fraction of the cost.

Young families have not left the market entirely. With prices down and interest rates still very low, many younger buyers do not want to miss the opportunity to get into a new home. In the past, the majority of buyers bought as big and as expensive a house as they could afford; that is no longer the case. Savvy buyers are taking stock of their finances and looking more closely at the way they want to spend as well as save their money.

Buyers from all age groups are buying smaller homes. What this means for the consumer is that buying a smaller home will not only save you money it may actually make you some. The “it” factor is what sells a house. Intimate family spaces, gorgeous kitchens, organized storage and great baths are the ingredients for a successful sale. Keep in mind that those renovations are more easily paid for in a smaller home. If those improvements are appealing to you when you look at a home for sale then they will be equally appealing to a potential buyer if and when you decide to sell your own home. By creating a home that is easy and affordable to manage you’ll be creating a home that is easy to sell. In this market, that’s piece of mind.

Should you decide to downsize follow a few simple rules: Buy a home with a layout that works well for your life. Focus your time and money on the parts of the home where you spend the most time. Do not neglect outdoor spaces. A smaller home can feel expansive with a three-season patio that hosts warm fires and pleasant conversation year round. When doing improvements consider energy efficient alternatives to old favorites and see if the costs are in line with energy savings. Use quality materials that make a statement and that will last. Just because your home is not a mansion does not mean that it cannot be a showplace. Hopefully, when you’re finished you’ll have the home you’ve always longed for and you may even have money left over to decorate it.