A Surprising Real-Estate Lesson

A surprising real-estate lesson. Pay attention!

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 You know, often I have friends and colleagues getting divorced call me up to talk through the financial repercussions. Makes sense. Stressful times for them. And today I want to focus on one worry I constantly hear them express – stick with me as the lesson is truly interesting and one I think many of us should take note of – it does not tie directly to divorce. People call me in near-tears, heck, forget that, tears, because the family home has to be sold. And that is tough. Very tough, emotionally. And, to make matters worse, with prices where they are now and property taxes and the cost of living up, both spouses often have to move to a much smaller home. A less expensive home. A home that, frankly, many head to begrudgingly.

“I love our house. It’s taken years to make it our home… to get it perfect. We just did a reno in the basement. The main floor was so roomy. The kids had their own spaces. This is going to be such a horrible adjustment. I’m dreading it.” I hear versions of that over and over again. But then, very often – the majority of times, in fact – things take quite a turn. Six months later, I ask, “How’s the new house? Are you getting used to it?” “We LOVE it! It’s so cozy. I put in a garden. The backyard is tiny but really cool. My eldest actually loves her bedroom in the basement. You know, Dave, it’s got character and some really cool features. Plus, it’s easier to take care of both inside and out.

And there’s lower property taxes, lower insurance premiums. As I said, we LOVE it.” Over and over. Every time? No. But an amazingly high percentage. None of this surprises me. At all. I really like small houses. My house is 1300 square feet, only two bedrooms and no garage. And I still have a room I never go in. Smaller houses – less stuff. Less stuff – more happiness. Stuff weighs you down. But, Dave, we have four kids! Why did you do that? I’m telling you, my motto is: Less is more. I’m going to regret saying that. No jokes in the comments section.