4 Things You Should Avoid When Downsizing

This Friday we are excited to announce our guest blogger, Shirley Martin from tidylifetoday.com. We are finding people are looking to downsize currently and with the world events going on, this may be something you're looking at as well. Downsizing can truly be daunting though if you have a large home currently filled with furniture and treasured items. Shirley is here to help us! Read below for some great tips to get your through the downsizing chapter in your life!

4 Things You Should Avoid When Downsizing

Downsizing is one of the best decisions you can make as a senior. By choosing to live on less in your golden years, you’re able to live with less—that is to say, fewer responsibilities and financial worries. In turn, this leads to more opportunities to live your life to the fullest.

But like all important transitions, you need to do downsizing right in order to reap its promised rewards. Here’s how to recognize possible pitfalls you may encounter along the way. 

Waiting too long to downsize

On the surface, the very tenet of downsizing—selling one’s home and using the proceeds to fund a smaller and more lifestyle-adequate one—suggests that it can be done whenever you think you’re ready for the transition. 

Unfortunately, many seniors end up waiting too long to do so, which can have plenty of negative implications. For one thing, moving takes a higher toll the older you get. For another, you miss out on the opportunity to grow your home’s proceeds further over a longer period of time. Sometimes the best time to downsize is long before you think you must. 

Investopedia notes it’s prudent to take into account factors like the current housing market in your area (to guarantee a fair price for your home), health concerns (especially when you start needing assistive features at home), and your lifestyle wants, to name a few.

Accepting a low offer on your home

Once you’ve decided to take the plunge, you will likely want to sell your home and sell it fast. This can make you susceptible to low-ball offers, though, so be vigilant. This is why knowing your housing market is critical. With that information in mind, you can have a realistic and fair idea of what your home will inevitably sell for, so you won’t end up settling for less. 

Of course, Bob Vila points out there may be times when a low offer is best taken, like if your home needs plenty of work or if the buyer is sweetening the deal (e.g., paying in cash), so consider these, as well.

Underestimating (or overestimating) the space you need

Now, it’s true that downsizing literally means going for something smaller. However, if you’re not too careful, you might end up with a new home that’s too small, even for your considerably scaled-down (yet upgraded) lifestyle. If you really want to downsize your home the right way, it’s a good idea to take a realistic look at your situation. Start by considering your current home and taking stock of how much space you’re truly taking up on a regular basis. This will give you a clearer idea of how little space you need and can actually live in with comfort.

Another suggestion is to plan your new home around nooks and crannies that you’ve always wanted to have. Perhaps you’ve always fantasized about a gourmet kitchen or a workshop, or maybe a guest suite for visiting loved ones. Acknowledging this will take you a step closer to your dream dwelling.

Choosing a new home sight unseen

Lastly, you may find yourself so eager to move that you end up choosing the first living option that’s compelling enough for you. But if you really want to live happily and comfortably ever after, you shouldn’t take that chance. 

Rather, the best thing you can do is to take the time to scope out your options. Perhaps you’re looking to move closer to town (or in it), so see how this new setting measures up against your old neighborhood, which may also have properties perfect for downsizing. You can also check out retirement communities to see if the amenities and social opportunities are inviting to you.

Suffice it to say, downsizing opens up countless possibilities, but you’ll also have to dodge pitfalls along the way. Ultimately, keep yourself well-informed on the process. Armed with information, you can stay in control and make the decisions that truly serve you best.