Downsizing Dilemma

Just hearing the word “downsizing” can often bring about negative emotions for many people because it’s viewed as something we are forced to do when we can no longer handle the home we’ve lived in for so long. And most of the time we think about downsizing as something we will eventually need to do much later in life. But I see downsizing differently. . .I see downsizing as being able to consciously choose a smaller home so that you can live amore carefree and better fitting lifestyle, no matter what your age or what stage of life you’re in. Downsizing can be the right move for you no matter your age, no matter your life circumstances, and no matter your financial situation. It really depends on your own needs and wants, and not someone else’s timeline. Maybe you want to travel more. Maybe you’re tired of cleaning empty bedrooms and unused bathrooms. Maybe you want a smaller mortgage to have extra money to focus on more important or fun things. I believe that downsizing can actually bring about positive gains in your life, and it doesn’t have to be something you dread or delay. But, it can feel overwhelming. That’s where I come in. My hope is that you will help you to start thinking about whether downsizing is the right move, and if so, you’ll understand more about the process ahead. And, if you are helping a family member downsize because it’s a way to keep them safe, you don’t have to feel as overwhelmed and can see how to do it gracefully. Moving from a big home you have loved to a smaller one can feel both scary and challenging at the same time, but I’m here to help guide you (and also make it as stress free as possible at each step along the way).

Step 1 – Embrace that Less Can be More

What if you start to view downsizing entirely differently. Where you can discover that less can be more. Less space and stuff can mean more freedom in so many ways in your life. Focus on what you will gain from a smaller home, not what you’ll lose. Even if you have loved your current home and your life there for many years, your life has changed or will be changing. And change can be a good thing! Picture what you want your life to look like in the years ahead. More financial freedom — use the profits from the sale of your current home to invest, have more liquidity, or put toward a less costly home. More time — fewer responsibilities and to-do lists give your life more flexibility. More funds for retirement — less costly mortgage payments, utilities, and property taxes means more money can go into your nest egg. More opportunities and experiences — travel without worries or take up new hobbies with your extra funds and/or time. More chances to see family and friends — enjoy loved ones near and far with fewer restrictions on your time and budget. More accessibility and convenience — move about easily and freely in a home with the right floorplan, amenities, or neighborhood. More fun and relaxation — free to do what you want with less stress and less worries.

Step 2 – Time it Right

When it comes to downsizing, there’s a lot to do, so it’s important to start planning well in advance before you actually want to make the move. What your home can sell for obviously effects the next home you can buy, so you want to get as much as you can for your current home. I can help homes sell for the most money possible, no matter what the market is doing. Timing, for example, is a huge factor. Certain times of year and even certain weeks of the year are better or worse for selling. I’ll help you understand the market while learning what your ideal timing is. Together we’ll map out a plan that works for your schedule AND the market’s ideal timing too, so you can have the most profitable sale as possible no matter what the market is doing! It takes planning and coordination to sell your current home and buy your next one so you can move seamlessly from one to the other. Making a plan and sticking with it is how to make this all happen with as little stress for you as possible. Understand the housing market where you plan to buy — prices, how fast or slow it’s moving, appreciation, etc. Figure out if you’ll need financing for this next home or will use the equity in your current home. Help you know what your current home is worth so you know your budget for your next home. Know whether you should sell first and then buy, or buy first and then sell, and understand how the finances would work for the option you prefer or that is possible for you. Everyone’s financial situation is different and there are so many options available, together, we’ll find the very best route for your finances and goals.

Step 3 – Purge & Let Go

One of the biggest obstacles for people who are downsizing is what to do with all the extra stuff. Give yourself plenty of time to go through everything you own and decide what you’ll bring with you, what can be donated, and what should be thrown away. During this part of the process, I typically do a walk through (or a few!) with my clients helping them with how the house needs to look to get the very most for it. For example, even if you don’t want to take a piece of furniture with you to your next home, I might suggest you leave it right where it is for showings and I can get rid of it for you after we’re under contract.

This purging and prepping phase can quickly get overwhelming. To avoid That, below are some tips if you are interested in doing this on your own, or I can provide recommendations of services to hire for everything from decluttering to which organizations can pick up your donations. The third option is you just hand me the keys and let me handle it. Start clearing out things as early as possible. This will help make the entire process less stressful and you can pace yourself and not do too much all at once. Don’t hesitate to get assistance. Start to reach out and schedule help from either a professional service (estate sales or senior move managers) or trusted family members as you go through your possessions. Remember, I can provide recommendations and even take care of what you don’t want to deal with. I have a whole list of people who can handle anything for you if you prefer. Give yourself enough time to finish. Everything always takes longer than you anticipate so make sure you work toward having your home ready to sell during the timeframe you wanted. That’s why you want to start as early as you can.

Take breaks to reflect and say good-bye. It’s going to be emotional and exhausting to go through treasured or memorable items. Acknowledge the strong emotions from family members. There could be items they want or thought they would inherit, and it could be hard to see these given away or sold. They may need to grieve the loss of their family home. Tips to make it all go smoothly Dealing with emotions and memories. Do not create a “maybe” category or put in storage! For your personal belongings, make four categories — keep, donate, sell, or throw away. Only keep furniture that will fit and you’ll use. That could mean extra bedroom furniture or that large dining room table won’t make the move. But, don’t get rid of things before we talk—I may ask you to keep the bedrooms set up for showing purposes. Only keep items that will match your new lifestyle or location. Say good-bye to your lawn mower and yard tools if you’re moving to a condo and to cold weather items if you’re moving to a warmer climate. Pass on heirlooms, antiques or treasured items to family members. You will feel better if others will enjoy and use these items. Consider digitizing photos, compact discs, DVDs. There are all sorts of services that can digitized your family DVDs, photos in albums, or your old-school film strips. That way you can easily pass these memories on to future generations. Only consider buying new furniture if it will work better in your new home. Sometimes you do need to buy more small-scaled items, such as a couch, when you move to your downsized home. Make sure you budget for it, and aim for multipurpose pieces, such as night stands that have drawers, ottomans with storage, etc.

Step 4 – Get the Most for Your Current Home

When it comes time to sell, you’ve only got one shot to get the most profit for your home to take with you on this next chapter of your life! Here’s where I can help you strategize and determine what to focus on, and what to spend money on to attract potential buyers. Understand the pros and cons to sell “as is” vs. fix up. Depending on several factors—such as location and who is the most likely buyer of your home—it may make sense to do nothing and sell your home “as-is.” Other times, it makes better financial sense to do a few light repairs or renovations to help you get the most for your home. I’ll help you decide which is best. Get the most bang for your buck for fix-ups. If you decide to do some repairs or renovations, you want to be sure what you put into your home will come out in the sale. I will do a walk-through with you to tell you what projects are worthwhile and which you can skip. Find easy and inexpensive ways to update your home. I’ve got so many great “shortcuts” for helping a home look its best without spending too much time or money to get it there. I’ll share all of them with you!

Step 5 – Find Your Next Best Home

There’s no reason you can’t “Dream Big” when going smaller with a home! This time dreaming big isn’t about the size of the home, rather it’s capitalizing on what can be the most manageable and affordable home and location for your life in the coming years. There’s always some give and take or compromise, especially if you want to stay on budget. But first, figure out how you see yourself living and go from there. Here’s some help to jump start this process: Do you want a smaller home in the same or nearby neighborhood to keep your community ties? Or, is being closer to family members a priority? Make a list of certain amenities you are seeking, whether a neighborhood with shopping nearby, a one-story floor plan with a certain number of beds and baths, space for gardening, pet-friendly, close to mass transit or airport, etc. Understand location can dictate the type of home you can afford. Do you need to find a jurisdiction with lower property taxes? Or a condo unit with lower owner fees?” Do you want a smaller home in the same or nearby neighborhood to keep your community ties? Or, is being closer to family members a priority? Make a list of certain amenities you are seeking, whether a neighborhood with shopping nearby, a one-story floor plan with a certain number of beds and baths, space for gardening, pet-friendly, close to mass transit or airport, etc. Understand location can dictate the type of home you can afford. Do you need to find a jurisdiction with lower property taxes? Or a condo unit with lower owner fees?” Costs can start to add up due to additional professional services for packing, reducing belongings, estate sales, etc. If you’re moving to a condo community, understand the total cost of living there such as owner fees and other requirements. Downsizing doesn’t have to be overwhelming once you know the steps you need to take and have someone who can help you every step of the way.

I hope the information in this guide has helped you see that if you plan ahead and strategize, it can be a much smoother process.

I’d love to help you with the preplanning process when you’re ready and go over more details for you to figure out the strategy that works for your downsizing goals, including how to time everything, even if you are years out from going anywhere. Gain insights on how to sell and buy in today’s market — especially if you haven’t bought and sold a home in a long time. Understand current loan programs and financing opportunities that can help you find your new home first, then sell so you don’t end up with nowhere to go. Get tapped into my list of reputable professionals — contractors, movers, move managers — who can help make your move successful from start to finish. If you are thinking of downsizing or helping a family member do so, please contact me at realagentcarla@gmail.com or call me at 530-566-5085. We can schedule a time to talk through the process, and I can show you how to get started and help you come up with a plan