How to Do a Strategic Downsize for Seniors

There are several reasons to consider downsizing to a smaller house. 

First, you might be wanting to save money and increase your nest egg. Then again, perhaps you're ready for a new experience, such as relocating to a metropolitan high-rise apartment or a cottage on the lake. After all, with the kids gone you may no longer require the additional bedrooms and baths.



No matter your reason for downsizing, an honest assessment of your expectations is required to make an educated decision. That's why before shopping for smaller properties, real estate brokers advise clients to ask themselves the following questions:

1. Is this something I’m ready for?

This is a question that can only be answered after you actually begin looking at houses because only then will you know how small "smaller" really is. At that point you’ll be able to compare a potential new house to your current one. Differences can include the bedrooms being smaller and the lack of what are called common living areas.



Are you really ready to share less square footage with your family members? Are you ready to have fewer closets and less storage space? These are questions you need to ask yourself before you consider downsizing.

2. Is it financially feasible to downsize?

Most people believe that downsizing automatically means that they’ll be saving money, but that’s not always the case. Costs such as a  new mortgage, insurance, and taxes as well as potential repairs and renovations need to be considered.



If you're moving to a condo or townhouse, you should also consider homeowners association expenses. These costs cover landscaping, common area upkeep, garbage removal, and pest treatment.

3. What are the costs associated with selling my house?

The money you get from selling your house should not be your only monetary consideration. There are also local real estate transfer taxes, loan payoffs, house warranty, commission fees, and other costs to consider. Sellers should be considering their long-term financial plans when thinking of selling their home because it can affect your capital gains tax, basic transfers, and also potentially raise your property tax.

4. Does the floor plan fit your needs?

When it comes to downsizing, every square inch matters, so for you to fully enjoy your home and to make the most of your space, having the right floor plan is essential.  However, you should never rule out a property based on its square footage alone.



While some seller's plans don’t include downsizing, they may consider a smaller house if its floor plan is superior to their current one.

5. What am I most looking forward to leaving behind?

There are no doubt  obvious benefits to downsizing, such as less cleaning and yard work, but it’s still critical to consider if you can really let go of your bigger, beloved family home. If you can, it can be a huge relief to say goodbye to the day-to-day responsibilities of a larger home.



When people express excitement about gardening or sitting on the patio instead of cleaning bedrooms and bathrooms they seldom use, they are definitely ready to look for a smaller space.

6. Where will all my stuff go?

A good method for downsizing is to think about what you want to keep rather than what you want to get rid of.



Do you have a home gym, an office setting, a visiting room, or various sets of den furniture? You should first decide what you actually need to keep because it can assist you in answering the question of how many bedrooms you actually need. This leads you know how small your new house can actually  be.

If you decide to remain in possession of your belongings, keep in mind the expense of storage.

7. Where am I going to park?

When it comes to purchasing a smaller property, you should also consider what your parking needs are.. If you move to a city that relies mainly on public transit, will you get rid of your cars or will you be able to find street parking? You may have to consider buying an additional parking spot or pass for a garage if you wish to keep your car.



If you downsize to the suburbs you have to consider the driveway or garage space. You might not think it’s a big deal until you have to play musical chairs with your automobiles.

8. Should I look into buying a condo?

A smaller house may provide you with more room and seclusion from your neighbors, but you will still have to tend the grass. Condos tend to be less expensive and you don't have to do as much upkeep, but HOA (Homeowners Association) costs have to be factored in.



An association's bylaws also have to be considered when thinking about a condo. Such rules as being unable to have pets or to decide the color of your front door can be deal breakers for some.

9. Where do I want to go?

Many companies enable people to work from home these days which makes it a lot easier to move to a different city or state. But, before you decide to put down roots elsewhere, make sure your new community includes the services and lifestyle alternatives that are essential to you.



If you're still unsure about the new location, consider renting in the region first before committing to actually buying a property.