- The Borrow Smart Chronicles
- Posts
- Trade Down Strategy -
Trade Down Strategy -
It must be sold, it's powerful but learn it and share the impact.
Todd Ballenger
June 27, 2025
"If you think education is expensive, try ignorance."
The Trade Down Strategy is a powerful way to engage with Realtors and Financial Advisors to get them working for you to find clients with highly appreciated HOMES that might like a simpler life (less house-related stuff) and more cash flow (who doesn’t) in retirement.
Subject: Would You Like to Explore a Trade Down Strategy?
Hi [Client's Name],
I hope you're doing well. I wanted to check in and see if you'd be open to exploring a Trade Down Strategy — an analysis that examines the financial impact of selling your current home and purchasing a smaller, more efficient property.
For example, one of our recent clients sold their family home for $850,000 and purchased a condo in a nearby retirement community for $450,000. By making this move, they unlocked over $400,000 in equity and created a more comfortable and financially efficient living situation.
Here are a few of the benefits they realized:
Lower annual property taxes, saving nearly $4,200 per year
Reduced insurance costs by over 50% due to the smaller footprint and HOA coverage
Utility savings from downsizing to a more energy-efficient unit
Freed up capital that was reinvested, generating monthly income to support retirement goals
Simplified lifestyle with less maintenance and more community amenities
This kind of strategy is about more than just downsizing — it’s about optimizing your home equity to improve cash flow, reduce expenses, and increase financial flexibility in retirement.
Would you like me to prepare a personalized Trade Down Strategy to see what this could look like for you?
Best regards,
[Your Name]
[Your Contact Info]
What would you like to learn more about?Tell me more after you select: |
a BORROW SMART CONCEPT
Managing BIGLY House Equity
"One-Third of Baby Boomers Say They'll Never Sell"
Chart Summary:
This chart illustrates the likelihood of U.S. homeowners from different generations considering the sale of their homes over various timeframes. The generations tracked are:
Silent Generation (dark blue)
Boomers (blue)
Gen X (light blue)
Millennials/Gen Z (sky blue)
💡One Surprising Insight:
45% of Baby Boomers say they’ll never sell their home, the highest of any generation — a clear signal of housing supply constraints ahead, particularly as this large demographic ages.
🔍 Key Data Highlights:
Timeframe | Silent Gen | Boomers | Gen X | Millen./Gen Z |
|---|---|---|---|---|
Within next 3 years | 6% | 7% | 8% | 17% |
In next 3–5 years | 8% | 11% | 13% | 16% |
More than 5 but <10 years | 27% | 19% | 24% | 22% |
More than 10 years, but at some point | 16% | 30% | 31% | 25% |
Never | 34% | 45% | 25% | 21% |
📌 Key Takeaways:
Boomers are the most reluctant to sell, with nearly half saying “never.”
Younger homeowners (Millennials/Gen Z) are more open to selling sooner, especially within the next 3–5 years (16–17%).
Silent Generation is the most likely to sell within the next 5–10 years, indicating an aging population may gradually release homes into the market.
Gen X splits the difference — not as reluctant as Boomers, but not as mobile as younger cohorts.
Liability management involves first managing current liabilities in a way that minimizes the amount of interest expenses (friction) incurred in repaying the debt. Then, as you develop wealth in the house (equity), it is essential to manage that location, location, location too!
You need to MAKE YOUR MARKET and help them see why selling might be a BIGLY deal for them in retirement.
LIABILITIES
What’s Happening?
from John Wake
See interactive charts on home valuations: HERE
the gap and spread are decreasing - good for rates
we have a debt AND entitlement spending problem in the US
HIGHEST DTI is FHA Loans!
builders have permits in hand, but will they build?
Millennials are finally getting into housing!
from Calculated Risk - monthly of supply increasing
house prices coming down as inventory increases and sales prices drop
consumers still in good shape
with lots of equity to fall back on
REAL ESTATE
What’s Happening?
we are moving into the slower part of the year
builders need lower rates to build again
sellers are lowering prices
ASSETS
What’s Happening?
We have a lot of net equity in and outside the house
more with more than $1M, but remember that’s like $500,000 in in 1995 spending power
at the individual level it doesn’t look as rosey based on the median wealth
we are equity heavy in the US
everyone is trading - degens…
summer is often a slower time as the big cats are at the Hamptons
ON BEING HUMAN
What’s Worth Sharing?
Thank god for the $1,000 bonus - we need more babies
not a bad return
stay frosty
Was this email forwarded to you? Sign up here.