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Homebuyers reviewing new build floor plans with a real estate agent

Upgrade or Downsize? How to Decide When Moving into a New Build

April 29, 20254 min read

Upgrade or Downsize? How to Decide When Moving into a New Build

One of the biggest questions I hear from clients looking at new construction homes is this: Should I upgrade to a bigger home or downsize into something more manageable?

Homebuyers reviewing new build floor plans with a real estate agent

It’s a smart question and one that deserves some thoughtful consideration. As a real estate agent here in Dallas, I’ve helped clients on both sides of this decision — whether they’re looking for more space or simplifying their lifestyle. If you're thinking about making a move into a new build, here's how to weigh your options.

1. Take Inventory of Your Current Needs

Start by asking yourself:

  • How much space do you actually use today?

  • Are your kids moving out soon?

  • Do you plan to work from home long-term?

  • Do you entertain often or host out-of-town guests?

Upgrade if: You need more bedrooms, a home office, or simply crave open-concept living with modern features.
Downsize if: You're empty nesting, want less upkeep, or prefer a simpler lifestyle with fewer rooms to clean and maintain.

2. Factor in Lifestyle Changes

A new build is a fresh start, and that means thinking ahead. Are you planning to grow your family, retire soon, or travel more frequently?

Upgrade if: You’re expanding your household or want to create your “forever home” with all the dream features you’ve been waiting for.
Downsize if: You want flexibility, lower utility bills, and the freedom to lock up and travel without worrying about a large property.

3. Think About Maintenance and Upkeep

New builds generally require less maintenance overall, but the size of the home still matters.

Larger homes come with more square footage to clean, maintain, furnish, and cool — especially in Texas summers.
Smaller homes tend to be more energy-efficient, easier to manage, and less stressful overall.

I always encourage my clients to think about how much time, money, and effort they want to spend maintaining their home, especially if their priorities are shifting.

4. Consider Long-Term Resale Value

The resale potential of your home is just as important as the initial purchase. While both larger and smaller homes can appreciate well in Dallas, market demand may vary based on area and home style.

As your agent, I’ll help you:

  • Understand current demand for home sizes in your chosen community

  • Compare trends in resale value for similar new builds

  • Make a decision that supports both your lifestyle and your financial future

5. Look at the Full Cost Picture

A bigger home isn’t just a bigger price tag. It can mean higher taxes, more furniture, and increased monthly bills. A smaller home might come with fewer costs but might not offer the space or features you’re used to.

Let’s go over your budget together and see what’s possible. I’ll help you weigh all the costs, not just the sticker price.


FAQs

Q1: Is it better to buy a bigger home while rates are low?
A: It depends on your long-term goals. If you plan to stay in the home for several years, locking in a lower rate on a larger home can be smart — but only if it fits your lifestyle and budget.

Q2: Are smaller homes harder to sell later?
A: Not necessarily. Many buyers are looking to downsize, especially in established neighborhoods or 55+ communities. I can help you choose a home that holds its value.

Q3: How do I know how much space I really need?
A: Think about how you use your space now. Do you host often? Work from home? Need a playroom or guest suite? I’ll help you translate your lifestyle into the right square footage.

Q4: Are there affordable upgrades in new builds without going over budget?
A: Yes. Some upgrades add more value than others. I’ll guide you through builder incentives and recommend the upgrades with the best return on investment.

Q5: What are the hidden costs of upsizing?
A: Higher utilities, property taxes, and furnishing costs. I’ll help you plan for these so your monthly expenses stay in line with your financial goals.

Bottom Line

Whether you're upgrading or downsizing, moving into a new build gives you the chance to design a life that fits where you are now — and where you're headed. I’m here to walk you through the decision from every angle, so you can move forward with clarity and confidence.

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Owned and Operated by Thomas & Thomas Financial Group, LLC

Steven J. Thomas

Steven J. Thomas has been in the financial services industry for the past 19 years and started my career as a Financial Planner for American Express Financial Advisors. I entered into banking with JP Morgan Chase as personal banker in 2003 and was promoted several times up to Small Business Specialist. I earned multiple Million Dollar Club awards and was ranked in the top 5 Small Business Specialist before I branched out in 2005 to start my own Financial Management Company. I ran a successful company before family circumstances lead me to Wachovia Bank in 2008 where I worked as a Senior Financial Specialist. As a Sr. Financial Specialist; I was responsible for the P & L and revenue growth of my banking center. The elimination of my role thru a bank merger lead me to BBVA Compass. I have held various leadership roles at BBVA Compass including Personal Relationship Manager, Branch Retail Executive, Workplace Solutions VP, and his current role as a Retail Manager. As the Regional Workplace Solutions VP, I was responsible for the strategic, tactical, and execution of Partnership Banking relationships, promotion and activity with corporate and non-profit companies in my footprint. I was responsible for the acquisition production for three districts, which includes 51 banking centers and over 300 employees. In May of 2014, I joined the team at Refind Realty and became one of the managing partners in mid-2015.

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succesfull real estate agent testimonials

I used this realtor and it was a great experience. He was patient and very helpful with our journey. He also helped us find a great lender with little hassle on the process, also got us approved for well above the market of our original home so we were able to get more house with a lower mortgage rate. So to anyone who is interested in buying a home take my advice give Steven a call. It’s worth it 😁

Bryant Loring

Steve was absolutely amazing! Everything was easy! Very professional in all aspects. Punctual, responsive, and diligent. He goes above and beyond to ensure you get to see as many homes as you’d like no matter the location. Not only was he knowledgeable about home buying, he also has a resourceful network for new home owner needs. I recommend Refind Realty to everyone!

Nicholas Bishop

I definitely recommend Steven to assist with your home buying needs. As a first time home buyer the process can be overwhelming, but as my realtor he was knowledgeable & patient while addressing my concerns and assisting me with my new home purchase. Thanks again Steven!! :-)

Gayle Mason

Ask Us Anything

Frequently Asked Questions

Why do you need a Realtor?

When buying or selling a home, there are so many options…which can also present a lot of obstacles. Laws change, forms change, and practices change all the time in the real estate industry. Because it’s our job to stay on top of those things, hiring a realtor reduces risk, and can also save you a lot of money in the long run.

When you work with me as your Realtor, you’re getting an expert who knows the area; knows how to skillfully guide your experience as a seller or buyer; can easily spot the difference between a good deal and a great deal. My job is to translate your dream into a real estate reality, and I work hard to earn and keep my business. This also means earning your trust: When you work with me, you’ll be working with a realtor who looks out for your best interests and is invested in your goals.

Which loan should you choose?

There are two different types of loans conventional loans and government-backed loans. The main difference is who insures these loans:

1 - Government-backed loans (FHA, VA and USDA):

(a) - Are, unsurprisingly, backed by the government.

(b) - Include FHA loans, VA loans, and USDA loans.

(c) - Make up less than 40 percent of the home loans generated in the U.S. each year.

2 - Conventional loans

(a) - Are not backed by the government.

(b) - Include conforming and non-conforming loans (such as jumbo loans).

(c) - Make up more than 60 percent of the loans generated in the U.S. each year.

What is the difference between FHA, VA and USDA loans?

1 - FHA LOANS:

FHA loans, which are insured by the Federal Housing Administration, are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment of as little as 3.5 percent and a credit score as low as 580.

FHA loans are often called “helper loans,” because they give a leg up to potential borrowers who may not be able to secure one otherwise. For this reason, FHA loans have maximum lending limits, which are determined based on housing values for the county where the for-sale home is located.

Because the agency is taking on more risk by insuring FHA loans, the borrower is expected to pay mortgage insurance both at the time of closing and on a monthly basis, and the property must be owner-occupied.

2 - VA LOANS:

VA loans are backed by the Department of Veterans Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100 percent financing, meaning VA borrowers are not required to make a down payment.

Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

3 - USDA LOANS:

You may also hear about USDA loans, which are backed by the United States Department of Agriculture mortgage program. USDA loans are intended to support homeowners who purchase homes in rural and some suburban areas. USDA loans do not require a down payment and may offer lower interest rates; borrowers may have to pay a small mortgage insurance premium in order to offset the lender’s risk.

What’s a conventional loan? Understanding what it means to be conforming and non-conforming

Buyers who have a more established credit history and a larger down payment may prefer to apply for a conventional loan. These loans may offer a lower interest rate and only require the home buyer to purchase monthly mortgage insurance while the loan-to-value ratio is above a certain percentage, so a conventional loan borrower can typically save money in the long run.

Conventional loans are divided into two types: Conforming loans and non-conforming loans.

1 - CONFORMING LOANS:

Conforming loans are those that meet (or conform to) predetermined standards set by Fannie Mae and Freddie Mac — two government-sponsored institutions that buy and sell mortgages on the secondary market. By selling the loans to "Fannie and Freddie," lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

The main standard for conforming loans is that the amount borrowed must be under a certain amount; in Alaska, a single-family home loan must be under $647,200 in order to be considered conforming.

Properties with more than one unit have higher limits.

2 - NON-CONFORMING (JUMBO) LOANS:

But what happens if a borrower wants to borrow more than the Freddie- and Fannie-approved loan amount? In this case, they would have to apply for a “jumbo loan,” which is the most common type of non-conforming loan.

Because the lender cannot resell the jumbo loan (or any non-conforming loan) to Freddie Mac or Fannie Mae, jumbo loans are considered to be riskier than a conforming loan. To protect against this risk, the bank will typically require a higher down payment; the interest rate on a jumbo loan may also be higher than if the same borrower applied for a conforming loan.

What kind of rate should you choose?

Rate types: Fixed-rate vs. adjustable-rate mortgages.

In addition to the loan type you choose, you’ll also have to determine if you want a fixed-rate mortgage or an adjustable-rate mortgage (ARM). A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low-interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate on an ARM can sometimes be locked in for different periods, such as one, three, five, seven, or 10 years. Once the introductory period is over, the interest rate typically readjusts annually.

Office 1229 E. Pleasant Run Ste 224, DeSoto TX 75115

Call :(713) 505-2280

Site: www.stevenjthomas.com

Owned and Operated by Thomas & Thomas Financial Group, LLC