How Do You Know You're Ready to Downsize?

When people think of someone “downsizing”, they usually imagine an older couple in their fifties moving from their longtime house to an over-fifty community. And although many times this is the case, people can downsize at any time in their life.

Maybe you are a couple who bought a large home thinking they would have lots of kids, but then you realize you are done after one.

Maybe your kids are in college and you don’t need all those extra bedrooms.

Maybe you are tired of yard maintenance and you want to try living in a condo where that’s stuff’s taken care of.

Maybe you have always wanted to live in the city and now is the perfect time in your life to try it.

Ask yourself these 6 Questions to determine whether it’s your time to move from a big house to a more modest home.

Is there just TOO MUCH house?

If you suddenly find yourself with too many extra bedrooms because the kids have all moved out, it may be time to look at smaller homes. Empty rooms that are being cooled and heated without anyone enjoying the space can be a financial drain you just don’t need to put up with. Cleaning, maintenance, and utility costs for an overly large home can be a waste, and it’s avoided by moving to a charming cape, cottage, or bungalow style home that still fits your needs with less square footage.

Are you paying too much in property taxes?

Sometimes the decision to move comes about for financial reasons. It can be worth looking into towns with lower property taxes and looking at homes with a smaller footprint and lot size. This may be a good option for someone who is trying to boost their savings and create a sense of security, someone who is retiring or has experienced a pay cut of some kind, or someone on a fixed income.

Do you need to tap into your home’s equity for other projects?

Another financial reason to downsize is to tap into the home’s equity. If you are intending to retire on your home’s equity, think about how much of that can be converted to cash and can boost your savings and create a sense of security. Or maybe you are looking to finance other projects with that equity from the home sale. It all depends on your individual goals and needs.

Is your home’s upkeep becoming unmanageable?

Homes need constant maintenance, and when the big ticket items are due to be done, a lot of people decide to sell. These are things like exterior and interior painting, redoing the floors, roof replacement, AC and heating repairs, driveway paving, landscaping and yard work, outdated appliances, outdated cosmetics in the kitchen and baths, and more. Even though there is a percentage of home buyers who are looking to purchase a “move in ready” or “turnkey” home where they do not have to update kitchens, baths, etc, most people expect to do some work to their new homes, whether immediately or some years later. At the very least, most people repaint walls, moldings, and shutters. If you are tired of the upkeep, maybe it’s time to think about moving to a smaller home or condo.

Does your home style no longer match your physical ability?

Unfortunately, life changes us, whether that be through aging or from other circumstances. You may no longer be able to live in a two-story home and require the ease of one-level living like in a ranch or condo.

Have friends and neighbors already moved?

When you live somewhere for a long time, you establish a network of people, a community that you rely on. If the people you know are all downsizing or moving for whatever reason, it can leave people feeling lonely or like there is suddenly something missing. This is often another natural time in life when people think about downsizing.

Do you find yourself wanting to be closer to family?

As people get older, they find themselves wanting to spend more time with their children and grandchildren who have grown up and moved to homes of their own. If you want to cut down on taking long trips to see everyone over the holidays or vacations, this may also be a good time to think about moving.