Here’s the ultimate questionnaire to decide whether it’s time to downsize your home
Your desired lifestyle determines the pros and cons of downsizing.
You could save and earn a lot of money by downsizing, but moving is also expensive.
Downsizing means you’ll need to declutter and reduce your amount of household items.
There are plenty of reasons to consider downsizing, from saving money to wanting to maintain a smaller house and yard. If you’re considering moving into a smaller home, it’s important to consider the pros and cons of downsizing before putting a “for sale” sign in your yard.
Depending on your phase of life, as an empty nester, a busy executive, or someone who needs a change, downsizing looks different. If you’re on the fence about downsizing to a smaller home, answer the following questions to decide whether it’s the right move for you.
Now is the time to create a good old-fashioned pros and cons list. While the advantages and disadvantages of downsizing vary based on your personal circumstances, use these factors as a guide to making your decision.
Take a look at some of the positive factors of downsizing.
Save money: You will spend less on your mortgage payment or rent per month, plus you’ll have lower utility and tax bills.
Make money on your current home: Depending on when you sell your current home, you could make a profit or pay off your existing mortgage.
Less upkeep: A smaller home typically requires less interior and exterior maintenance.
Accessible features: Older adults may want to downsize to a home that will allow them to age in place, including features like a walk-in shower, wide hallways, and minimal stairs.
Downsizing is a significant lifestyle change with a few drawbacks.
Less square footage: Smaller homes have fewer rooms and less square footage.
Moving expenses: It can be expensive to move into a new home, including the cost of hiring professional movers and professional junk haulers.
Storage facility costs: Since your new home may not hold all your belongings, you may have to rent a self-storage unit, costing $1 to $1.80 per square foot.
Moving is a numbers game, so you’ll need to spend time dissecting your financial status to determine whether downsizing makes sense for you. You should consult your investment manager, real estate agent, and financial pros to help make an informed decision.
Ask yourself these questions about your finances to get a clear picture of a downsized future.
Can I afford to move?
Will I have to work more?
What are my total moving costs, and how do I create a moving budget?
When is the best time to move?
How can I pay off my current mortgage before downsizing?
How much will my current home sell for? Will the proceeds buy my new house outright?
What is my new monthly mortgage payment?
Saying you’re ready to free yourself from extensive lawn care and gutter cleaning is one thing, but it’s another to embrace a downsized lifestyle. Even if you’re prepared to make the switch, most people have an adjustment period, so take plenty of time to think about the downsizing lifestyle changes.
Consider your answers to the following questions:
Are you excited about the prospect of downsizing, or does it feel forced?
Does your current home have unused amenities, like a pool or media room?
Will you have space for activities you love, such as entertaining on holidays or gardening?
Will your new home have room for guests to stay overnight?
Your new home’s location will affect your lifestyle. If you’re considering moving into a downsized home, you’ll need to determine whether you want to remain in your current town or city or move to a new one.
Ask yourself the following questions about downsizing and moving to a new area:
Would you like to stay in the same area or move somewhere different?
How far away are your loved ones from the potential new location?
How will the new location change your commute time to work and other essential places?
What would you improve about your current location, and what type of area matches those priorities?
One of the most satisfying parts of downsizing into a smaller home is freeing yourself from clutter and unwanted or unused items. However, not everyone looks forward to this process. Before deciding to downsize your home, you should consider whether or not you’re ready to part with excess furniture, clothing, knick-knacks, and more.
To start the downsizing process, you’ll need a purge plan to help you make tough choices about your belongings. You can hire a professional organizer, schedule donation pick-ups, and hold yard sales to help you manage your inventory. Then, start dividing your items into those that you need or want to take to your new, smaller home, and those to donate, give away, or sell.
