If you're selling in Northern Virginia and moving south, to the Richmond area, for example, there's one piece of advice you're going to hear from just about everyone. You're leaving a higher-cost place for a lower-cost one, so when you buy in Richmond, pay cash. Have no mortgage, and you'll be all set. It's the conventional wisdom, and it sounds perfectly reasonable. I have a different version for you that's worth a real look before you decide.

Paying cash is right for some, not most. For certain buyers, paying cash and never having a mortgage again genuinely is the best move, and if that's you, wonderful. But for the majority of people making this kind of move, I'd encourage you to at least rethink it and consider carrying a small mortgage instead. Not a large one, a small one, sized so the payment never interferes with your day-to-day living.

A small mortgage keeps your cash liquid. When you downsize, or rightsize, as I like to call it, you're often moving onto a fixed income. If you can comfortably carry a small mortgage, one that doesn't strain your monthly budget, you keep a chunk of your money liquid instead of locking it all into the house. That liquid cash is there when you actually need it. 

If the roof starts to leak, or a medical emergency comes up and you need funds on hand, you have them, rather than having every dollar tied up in a property you'd have to borrow against or sell to access. This is the same trade-off financial experts weigh when they compare buying a home in cash against financing it, and liquidity is a big part of why the all-cash route isn't automatically the winner.

This is food for thought more than a hard rule, but I really want you to think it through before you write that check. There's a meaningful difference between owning your home free and clear with nothing left in reserve, and owning it with a manageable payment and a cushion of cash you can reach at any time. If you're weighing a move like this, it's worth planning the same care into your finances that you'd put into preparing the home you're selling, because both sides of the move affect how much freedom you walk away with.

If this helps, please feel free to share it with others who might be thinking about the same kind of move. And if you have questions about your own situation, I'm always happy to help you figure out the right approach. Call or text me at (703) 216-4272, email me at terrirobinson@remax.net, or visit liveinva.com. Let's make sure your next move sets you up the way you want.