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We recently sold our 2 story 3700sqft house and moved into a 1 story 2600sqft house. I do miss some of the extra space, like a dedicated theater room, but for the most part we don't notice the missing 1100sqft. It's just the two of us and our dogs so I think that helps. Another thing that helps is the new house is on 2 acres so then we entertain we are usually out on the deck or around the firepit.
I do like the fact that my utilities are about 1/3 the cost of the last house.....
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