Should You Stay or Should You Move? Look Beyond the Mortgage Payment

When homeowners start thinking about moving, one of the first comparisons they often make is the mortgage payment.

“My payment here is $1,500. If I move, what will my new payment be?”

That’s certainly an important number.

But it isn’t the whole number.

Whether you’re thinking about downsizing, relocating or simply moving into a home that better fits your life today, I think the better comparison is the total cost and practicality of living in each home.

Start With What Your Current Home Really Costs

Your mortgage payment may include principal, interest, property taxes and homeowners insurance. But owning the house costs more than the amount drafted from your checking account each month.

Think about things like:

Property taxes
Homeowners insurance
Utilities
Lawn and property maintenance
Routine repairs
Major systems that may need replacement
HOA fees, if applicable
The time or money required to maintain the property

A house with a very manageable mortgage payment can still become expensive to own.

And sometimes the issue isn’t strictly financial.

A large yard may have been something you loved 15 years ago and something you dread maintaining today. Stairs may have never crossed your mind when you bought the house but matter a great deal now.

That’s why I don’t think this decision can be made by comparing mortgage payments alone.

Then Look Honestly at What Moving Would Cost

Here’s where downsizing can become a little surprising.

A smaller house doesn’t necessarily mean a less expensive house.

If you’ve owned your current home for a long time, you may have purchased it at a substantially lower price or financed it at an interest rate that isn’t available today.

Your next house may be smaller but newer, require less maintenance, have different taxes and insurance, or be located in an area where homes simply cost more.

Then there are the one-time expenses associated with making the change.

Depending on your situation, those could include selling expenses, moving costs, repairs or improvements before selling, closing costs on another purchase and expenses associated with getting settled into the new home.

That doesn’t mean moving is a bad financial decision.

It means we need to compare the whole picture.

Not Every Benefit Fits on a Spreadsheet

This is where the conversation becomes very personal.

Suppose moving doesn’t dramatically reduce your monthly expenses, but it puts you ten minutes from your grandchildren instead of three hours away.

Or perhaps you trade a large property requiring constant upkeep for a smaller home that gives you more freedom to travel.

Maybe the new house eliminates stairs.

Maybe you’re closer to medical care, shopping or the people you rely on.

Those things have value, too.

Real estate decisions aren’t made entirely on a spreadsheet because your home isn’t simply an investment. It’s also where you’re living your life.

The numbers need to make sense, but so does the reason you’re making the move.

Staying Has a Cost, Too

There’s another side of this comparison that can be easy to overlook.

People sometimes think of staying as the option that costs nothing.

But what does the house need over the next five years?

A roof?

HVAC?

Windows?

Exterior maintenance?

Could you comfortably handle those expenses?

And if maintaining the property is becoming physically difficult, would you eventually need to hire someone to handle the things you currently do yourself?

Sometimes staying is clearly the better financial decision.

Sometimes moving is.

But doing nothing shouldn’t automatically be treated as the free option.

Start With the Goal

Earlier this week, I wrote about why homeowners should know what they’re trying to accomplish before deciding to sell.

That’s where this comparison begins.

If your primary goal is reducing expenses, we need to determine whether moving actually accomplishes that.

If your goal is reducing maintenance, being closer to people you care about or living somewhere that better fits the next stage of your life, the calculation changes.

And if you’re thinking about selling because expenses have become difficult to manage, there may even be alternatives worth exploring before putting the house on the market.

The right answer isn’t automatically “stay.”

And it isn’t automatically “sell.”

It’s figuring out which choice puts you in the better position for what you want your life to look like next.

Thinking About a Move in West Tennessee?

You don’t need to have already decided to sell before talking with a REALTOR®.

In fact, sometimes I’d rather have that conversation earlier.

We can look at what your current home may realistically sell for, what expenses would come out of the sale, what your next housing options might cost and whether the move you’re considering actually accomplishes what you want it to.

Then you can make the decision with real information instead of guessing.

Sometimes that means putting a sign in the yard.

Sometimes it means staying exactly where you are.

Either answer is okay if it’s the one that makes sense for you.

Jennifer Knolton, REALTOR®
Coldwell Banker Southern Realty
Real Estate, handled with care.