Time to Downsize?

Americans tend to think that “bigger is better.” However, this is not always the case. Downsizing has many benefits, such as minimal maintenance (which frees up your time and money!). Many people decide to downsize once their children move out of the family home. It’s common for adults 55+ to move out of single-family homes in the suburbs and into downtown condos and lofts. Downtown is appealing because many of the neighborhoods are within walking distance to shops, work, restaurants, and nightlife. Condos and lofts are attractive because they are low-maintenance and more eco-friendly. Still, downsizing is hard, because often we hold onto fond memories of living in a certain home.

There are a number of factors to consider before you decide to downsize. First of all, how important is home size? Do you really need his-and-her offices, or could you be perfectly happy with one home office? This is simply a matter of personal preference and needs.  It’s important that downsizing feels like a step forward. If it doesn’t, perhaps downsizing is not for you. Nonetheless it’s best to be prepared for a trade-off. You might get less space and sacrifice a few of the luxuries of a bigger home in exchange for a lawn that takes less time to mow and a home that is less expensive and easier to clean. Downsizing is all about prioritizing yours wants and needs and weighing the pros and cons of your options.

Also consider how future scenarios may affect your lifestyle. Is it possible one of your kids will move back in? Do you sometimes host guests that would require a separate quest bedroom or an in-law suite?

It’s essential to consider costs. Downsizing will save you money because you are buying a smaller home and likely selling a bigger, more expensive home. It will also save you money through smaller mortgage payments, less property taxes, and reduced utility bills. Still, moving always costs money.  You may need to buy smaller furniture: large furniture suffocates small spaces. Consider selling your too-big furniture and unneeded possessions at a yard sale or on EBay or Craigslist. You also may need to rent a storage unit, if your new home cannot properly store all of your family heirlooms.

Finally, ask yourself what type of property you are looking for when you downsize. I have mentioned that lofts and condos (“attached homes”) need the least amount of maintenance. However, expect to pay monthly Home Owners Association (HOA) fees, which go toward maintaining the building. Sometimes, buildings with HAOs impose rules on their residences. On the bright side, many come with amenities, such as a gym and/or pool. Some people may prefer a single family, detached home. This option is most attractive to people who want a larger yard, more garage space, and other features that condo living falls short on. For people who have spent a long amount of time in a rather large home, it may be too much of a sacrifice to move into a condo that will likely be much smaller. Either way, pay attention to the neighborhood or area you want to be in. Do you want to be close to downtown? Is it important to live in a walkable, bike-friendly neighborhood? Do you prefer to live in a neighborhood with fewer children—maybe a development removed from schools?

Once you decide what you are looking for in your new home, go ahead and hire a realtor to help you in your search. I have experience with clients who are downsizing; contact me to see how I can help.

If you are building a home, seek out builders who specialize in smaller homes. HGTV recommends building a ranch or bungalow for optimal low-key living.