What to Consider Before Downsizing

The kids have moved out, and you don’t need such a big house anymore. With a smaller home, you can expect less yard work, less cleaning, reduced utility bills, and probably reduced property taxes. Before you decide to move, here’s what to consider before downsizing.

Are you ready financially? Talk to a tax professional; will downsizing help your tax situation, or will you possibly get saddled with capital gains tax? Know before you have the sign planted in your yard. If you paid off your home, it might be better to sit tight for a while.
Are you taking too many things with you? Many people downsizing save all their furniture, collectibles, etc., for their children. The reality is, most of their kids don’t want their old things. This generation prefers to buy and toss furniture that’s inexpensive and easily replaceable. While some prefer their parent’s items, make sure you discuss this with your children before making a move.
Are there hidden costs where you are going? Are you thinking of a 55+ master-planned gated community with tons of activities? Ensure you know the price of the house and the cost of the homeowners association fees. Are you buying a home that needs repairs? That house could have many hidden costs of a different variety.

Whatever you decide, hire a licensed, experienced REALTOR. No one will be better qualified to guide you through the process of downsizing after so many years.

Contributing Author, Renee Pruitt, Keller Williams Realty