Downsizing The Home and Avoiding Mistakes
Do you want to downsize from your current house?
Downsizing homes is a significant life decision.
If you have owned a home for a while, you have probably heard of downsizing—of selling your current home for something smaller, more reasonable, and more financially friendly.
As you retire, the idea of downsizing homes pushes to the forefront of your mind. You can see the appeal. But you don’t want to get it wrong.
There are some common mistakes homeowners make when downsizing that you can avoid. Learn more about these downsizing mistakes to avoid as you read on.
What is Downsizing?
Downsizing is purchasing a house smaller than the one your currently own. It doesn’t necessarily mean you have to move into a tiny home, but something more modest than what you have.
Downsizing homes is often done by those who have become empty nesters, need to manage their finances, or have had a significant life change.
Some folks may need a lifestyle change or a closer location to family and friends. There are many options for downsizing houses, so it is wise to consider your options.
Understanding how to downsize a home is a key to help on your journey to minimize your life.
1. Waiting Too Long to Make The Home Downsizing Decision.
Your family home is more than just an investment. It has played a significant role in your life and the lives of your loved ones.
So it is no surprise that you might hesitate to leave it behind. But beware, putting off downsizing for too long will make the process more complicated than it has to be.
As you get older, moving becomes more arduous. You are less able to do any of the heavy liftings. You have less energy for tedious labor. You are not going to want to deal with the stress that is inevitable in a move.
You also have to think about what life has in store. Many wind up downsizing after a severe illness, a spouse’s death, or possibly divorce. Can you think of any time worse for a move? Talk about already having enough stress in your life as it is.
If you are seriously considering downsizing homes, try to get it done when it is still reasonable—not an overwhelming challenge.
2. Not Planning Downsizing Homes Thoroughly.
Downsizing involves many different tasks you will not be knowledgeable about before diving in. You are going to need to sell your current home and purchase another.
That means finding an agent, potentially hiring a real estate attorney, researching locations/neighborhoods, possibly changing home types (single-family to condo), getting rid of current possessions, and getting new possessions (furniture that will fit), and more.
You can handle all of this, but don’t underestimate the work involved. There is a lot to learn, and you want to enter your new situation with wide-open eyes.
For instance, if you are moving to a condo, you will adapt to a very different lifestyle from a single-family home where the HOA has a significant role.
See house vs. condo to get a proper perspective on what I am talking about.
Finding your retirement home should be something you give a significant amount of time to. It is easy to be thoroughly unhappy with your decision when ample time is not allocated to the process.
3. Not Preparing Well Enough For The Actual Move.
Moving is a very stressful event in one’s life. It takes time and planning. Most people just wing it.
When downsizing homes, doing so can be a big mistake. Lots of folks are notorious for leaving things until the last minute.
Not giving yourself ample time to pack your house is a classic mistake, but you’d be surprised how many people do it.
Even if you’re exceptionally skilled at organizing, it can be exhausting to sort out an entire life’s belongings in just a few days.
Make sure you give yourself at least a month to pack up your house. Setting aside an hour or two each day works well.
You’ll want to make it a priority to find free moving boxes if possible. If not, there are plenty of places to buy them.
Tackling one room at a time often works best. If you’re like many, you’ll tend to want to keep things you really shouldn’t.
You’ll likely find nostalgic items from the past you think you want to hold onto.
Keep in mind where you are heading and if you’ll have the room. This is a tough decision in the downsizing process.
Don’t forget to book one of the best moving companies in advance, especially if your move will take place in the summer months, which are the busiest.
Also, make sure you change your address with USPS at the top of your priority list. Nobody wants to have that stressed-out feeling of not receiving vital mail. Make your address change as soon as you know where your new home will be.
3. Assuming You Will See Significant Financial Benefits.
One of the biggest reasons people want to downsize is to save money. And you can save money, lots of it. But cost savings is not a given just because you move to a different home, even a smaller home.
The area you move to will play a big part in how much money you save. What is the cost of living? Moving is an expensive proposition.
You also have to consider the cost of upgrades to the new home, if any are required. Check out Nerd Wallet’s cost of living calculator for some help.
Of course, if you buy something where you will have a mortgage—when you have been living in a paid-off home—then you will have even more financial issues to consider.
Many retirees consider over fifty-five housing but is that the right move for you? There is much to consider when moving to a fifty-five and older community.
Will you be able to live with the restrictive covenants? Is the age group of the neighborhood what you’re looking for? Have you thought through the amenities that are most important to you?
These questions should be answered before making a significant financial decision. Quite often, one of the more common downsizing mistakes is not being satisfied with your housing choice.
4. Failing to Manage The Kids Correctly When Downsizing.
Every family is different, so you must formulate your approach to the kids. It would be best to let them know what you are planning, and you will probably want to involve them somehow. But in what capacity?
It all depends on your relationship with them. They could be a huge source of help if the situation is right. Or, they could be a difficulty you need to minimize if you are going to get things done.
Think carefully about how you want them involved and discuss it with them. Do this as far ahead of time as you can.
One of your children may be attached to your home and want a say in what happens to it. They may even want to buy it from you.
At the least, the kids will probably want to keep some items from the home that mean a lot to them.
5. Not Understanding How Vital Lifestyle is When Downsizing Homes.
A significant hurdle for many homeowners is determining what kind of lifestyle they want after the move.
You may want to have access to things you like right now in your new home. There are other things that you might be ok leaving behind.
You probably want access to things you don’t know—and you can get access by moving elsewhere.
But knowing what to keep and leave behind is not necessarily easy.
For instance, you may have spent decades gardening in your spacious backyard. Now that you are going to downsize, you are looking at a condo without a yard.
But the condo is next to a golf course, and you’ve always wanted to take up golf. The question is, will you be happy leaving behind gardening and replacing it with golf?
There are instances of people moving to a smaller home and being quite unhappy once they settle in because they lost a lifestyle they loved.
You may hate golf and be stuck with a few planter boxes to substitute for your beautiful garden.
Change is a part of life, and many people change their lifestyles by downsizing what they love. Strive to ensure that you are one of them.
6. Trying Too Hard to Fit Your Current Furniture Into Your New Place.
Since you are trying to save money, it makes sense to try and keep as much as possible from the old place. But there is such a thing as working too hard.
There will be items that don’t make sense for your smaller home. It will take courage to be honest about these items and let them go, especially if they are beloved.
You want to be comfortable in your new home, and it is impossible to be comfortable in a house crammed with ill-fitting furniture or piled to the ceiling with things you can’t seem to part with.
Prioritize comfort over things, and you will be happier with your home. Understanding the right size of furniture for your new place should be a key consideration.
Donating furniture is an intelligent thing to do when you are downsizing. You can have furniture donations picked up at your house for free, as many charities would gladly take it off your hands.
7. Throwing Everything Away and Starting Over.
The flip side of keeping too much is getting rid of too much. Try to be calm and calculate what is worth keeping and what is not.
The more you can save and transfer to the new home, the cheaper the transition.
8. Not Putting Enough Thought Into The Real Estate Agent Selection Process.
One of the most critical considerations of downsizing is selling the home you live in.
Of course, the real estate agent you choose can affect how quickly you sell and for how much.
Far too many people do not take the agent selection process seriously.
For whatever reason, many people think all real estate agents do the same thing to sell a home. This could not be further from the truth!
There is a reason some agents consistently produce year after year, and others don’t.
When selling, conducting a thorough interview with the real estate agent is essential. It would help if you asked pointed questions about what they will do for you.
You want someone who will do an exceptional job of selling your house. Keep in mind that you also want someone who is going to be able to help you effectively manage the whole buying-selling process.
Many people make the mistake of just hiring an agent they met at an open house, seeing one of their signs, or other such methods that tell you little about their skill level.
The biggest disappointments occur when sellers don’t vet their real estate agents correctly!
Downsizing into a smaller home often involves timing issues requiring considerable thought.
Great real estate agents can create a seamless plan, so you don’t have to worry about having two properties at once.
Final Re-cap on Downsizing Your Home
Downsizing mistakes are easy when you don’t think things through, don’t plan, and have a carefully coordinated game plan. Before you downsize, make sure you are mentally and physically ready.
Hopefully, you have gotten some good tips on downsizing from your current home.
Additional Helpful Home Selling Resources
- Tax deductions when selling your house – discover all the tax deductions you’ll be able to take when selling a home. Find out all the expenses that can be deducted from capital gains tax.
- It matters who you choose to sell your home – learn why the agent you choose to help sell your home is vital.
- Sellers should understand what Millennial buyers want – do you know the features in a home that Millennial homebuyers enjoy? Find out in this insightful article.
- Tips to make showings more inviting – get some helpful information on making showing your home a pleasurable experience for most homebuyers looking at it.
- Selling a luxury home safely – learn some of the best tips for making your luxury home sale a safe one.
The above articles provide additional home-selling pointers when you are downsizing or at anytime.
About the Author: The above Real Estate information on home downsizing mistakes to avoid was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 37+ Years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
