Thinking about downsizing? Get excited about the life you want to live. Be selfish and focus on what’s important to you. Often, older adults are concerned about their adult kids and grandchildren coming to visit them, so talk with your loved ones about your plans. You need to determine your budget, lifestyle, and the type of housing you want.
Your First Considerations
Determine if you want to buy your next home or sell your existing one first. This is not a one-size-fits-all decision. There are pros and cons to both scenarios. A great Realtor, especially an agent specializing in seniors’ real estate, will be able to detail all the information you need to make such a critical decision.
Do you want to stay in your current community because you love it but want something smaller and easier to maintain? Are you downsizing because you want to live in a less expensive area, and will downsizing help fund your retirement?
Do you want to live in a neighbourhood surrounded by families and retirees because that feels comfortable, or do you want to be surrounded by other retirees only in lifestyle neighbourhoods such as 55+ communities? Where are your doctors and good medical facilities located compared to where you live?
Planning on downsizing? Click here to find out why you should work with a Senior Real Estate Specialist!
It’s a Numbers Game
You need to know your moving costs, home improvements, including movers, real estate commissions, land transfer taxes if buying another home, home insurance, home inspection reports, and legal fees. Knowing your numbers is mandatory for making good decisions.
Suppose you are transitioning to or are already on a fixed income in retirement. In that case, you should consider consulting your financial person to help determine a budget for the purchase price and monthly operating budget to know how much you can spend each month on housing costs.
Determine your home’s current market value. This will help you budget what you feel comfortable spending on your next home. A great Realtor will advise you on what you should and shouldn’t do to prepare your home for the market. If you are making any improvements, only do things that add value. Never over-improve. The goal is to maximize the home’s value. It’s never too early to plan this out, even if you don’t plan to move for five years.
Searching for the perfect home to spend your next chapter? Check out these blogs next!
- Should I Retire to the Suburbs?
- 5 Tips For Downsizing Your East GTA Home
- Is Scarborough Good For Seniors?
Don’t Skip Decluttering
In my experience, seniors transition to simple living, even becoming minimalist. Getting past their “stuff” is so empowering. However, it can feel overwhelming initially because they’re often moving from a home where they raised a family filled with many cherished memories.
Take inventory of your stuff. Determine what you want and, more importantly, what you need to keep. You are likely to move to a physically smaller home. Likely, the way you currently live isn’t going to fit into your new home. Don’t buy your new home to fit all your existing stuff. When going through your belongings, determine what can be given to family or friends, sold, donated, or thrown out.
By planning, you will minimize stress. You can set a goal and reward system for yourself. We generally perform best with a deadline. Part of de-cluttering is cleaning. You might already have a clean house, but a deep clean is imperative. Washing every nook and cranny, baseboards, windows, and walls. Well-maintained homes attract the best buyers for your home. I can’t emphasize this enough. If the house looks neglected on the surface, the buyer will assume what’s behind the surface is even worse.
Make Your Home Market Ready
You must look at your home through a buyer’s lens, ensuring it is in good repair and well-maintained. If items need repair, ensure they are done before putting the home on the market. Well-maintained homes will sell for more money.
We go beyond cleaning. Detailing the home will go a long way toward maximizing its value. I can’t emphasize this enough. It shows how much pride a homeowner has in their home. When buyers see this, it builds trust that the house is in good condition, which equates to a higher value and a faster and less stressful sale.
We always stage our listings just before putting them on the market. A common question I get is, “Is staging worth it?” The answer is yes. I believe so much in staging that I invest in my clients’ homes and include it as part of my service, and it’s complimentary. My listings outperform the market by 5-10% on average, equaling $100,000 or more.
Hoping to sell your home soon? Check out these blogs to find out how I can help you reach your goals.
Don’t Fall For These Downsizer Mistakes!
Avoid moving to a community far away from where you currently live is unfamiliar. Living far away from friends and family could leave you lonely and isolated.
Downsize for the right reasons, not just because you feel you should. You might feel pressure to move as you enter retirement or are retired. Because you might have lived in your current environment for a very long time, you might feel resentment by moving just because your friends have done so. Evaluate and analyze your health and well-being, financial situation, social life, and family commitments before deciding where to downsize your home in retirement.
Not having a financial plan could create a lot of unwanted pressure and stress. You have worked long and hard to earn the lifestyle you want. You will want to consult a financial professional to help determine how you want to handle the money you receive from the sale of your home. You may want to use some of the money to fund your retirement and travel plans, pay off any outstanding debt so you can live mortgage-free, and have a budget to pay for your future housing expenses.
Downsizing? I Can Help
In my experience as an SRES, older adults want to downsize their homes in retirement by choice rather than circumstance. Having control is highly valued, and you want to avoid living in a situation where a change in your health or financial situation creates a crisis, forcing you to move. It often impacts other family members, which can cause unnecessary stress.
When I speak with my clients who have downsized their homes in retirement, the most common statement I hear is that they wish they had done it sooner. They learn that some of their fears weren’t fears. Their fears stemmed from being creatures of habit. As we age, change becomes more difficult. If you are considering downsizing, contact me, and I can share the available options. We can have a conversation about your next chapter.
Ready to downsize? I am here to support you in any way you need. Reach out to 647.283.2127 or email stuart@stuartnodell.com to start a conversation.
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