Knowing when it is time to downsize your home isn’t an exact science. For some, they have had a plan to downsize since their children were in elementary school. For others, they’ve been empty nesters for years and realize it’s time for a change. No matter your situation, here is a quick guide to downsizing your home.
When is it time to move to a smaller home?
There's no foolproof checklist, but if you find that you:
- Feel like your home is too big
- Don't have enough time to spend on things that nourish you
- See more pros than cons in downsizing your home
Then it might be time to downsize! Your home is where you spend most of your time, especially as you enter retirement. Ensure your home is somewhere you enjoy being, where it isn’t too large, and isn’t costing you more than it is worth.
Here are a few more questions to consider when choosing to downsize your home:
- How much time do I spend in my home?
- What are my priorities for my home?
- What are my financial goals?
- What are my emotional needs?
- What is my lifestyle like?
- What is my health like?
Once you've answered these questions, you'll have a better idea of whether or not downsizing is right for you.
So, what are some of the pros and cons to downsizing your home?
- Reduced living expenses
- Less cleaning and maintenance
- Better cash flow
- Chance to declutter
- Space limitations
- Emotional stress
- Moving costs
- Potential tax penalties
Remember, these might not be the same for everyone. Your individual situation and relationship with your home is unique, so take the time to make your own pro and con list for downsizing your home.
If you do decide that it is time for you to downsize your home, here are some tips to make the process easier for you:
- Start early. Don’t wait until moving day to begin preparations. Give yourself plenty of time to go through the downsizing process, as it can be an emotional one.
- Work with a realtor. There are professionals out there to help you with the home buying and selling process. When searching for a smaller home, make sure your realtor knows your priorities so you can get the happiest home for your family.
- Declutter as you move! Remove any duplicate and unnecessary items you’ve collected as you downsize your space.
- Make sure not to remove any important items through this process!
- Check out this article on what you SHOULD be leaving at home.
- Develop a system for packing and decluttering. If you go into this process with a plan, you can organize your things as you pack and begin the moving process.
- Meet with your financial advisor! Your trusted financial advisor can help ensure you are making the best financial decision for your family by downsizing your home. Make sure to take advantage of their professional experience to understand all the options available to you.
We want to ensure that you are on your financial journey with confidence. Downsizing your home can be a daunting task, but it can also be a rewarding one. By following the tips in this article, you can make the downsizing process easier and more successful. Make sure you are prepared, meet with your financial professional today.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.