Addressing your changing priorities
Over the years, your choice of home was probably driven, at least in part, by a growing family and accumulating wealth. You needed more space to house your family and possessions. When you’re downsizing, especially if you’re nearing a certain age or experiencing physical or cognitive challenges, your priorities change.Whether you’re buying an existing home or building a new home from scratch, you must consider features that may not have crossed your mind in the past, such as the following:
- Proximity to caregivers and to everything you need with convenient and affordable transportation (so you don’t have to drive anywhere)
- Single-level home (so you don’t have to climb stairs)
- Step-free entrance
- Wider doorways (to allow access for a walker or wheelchair)
- Patio versus a large yard (so you have less outdoor maintenance)
- More efficient use of vertical space (because you have less square footage)
- Lever handles (instead of knobs) on doors and cabinets
- Nonslip flooring
- Shower with no-step entry, grab bars, and adjustable showerhead
- Raised or adjustable-height toilet
- Automatic or rocker light switches
- Hands-free faucets or faucets with lever handles
- Lower cabinets or cabinets with pull-down shelves
- Multilevel or adjustable countertops
- Availability of assistance, such as meal preparation, housekeeping, and nursing
Selling your home
Regardless of whether you’re planning to buy a new home or move to a rental unit, or you have some other living arrangements in mind, if you own a home you’ll need to sell it. As you plan to sell, keep these key points in mind:- List your home with a top-selling Realtor in your area. You’ll earn enough extra by listing with a top-selling Realtor to more than cover the commission.
Realtors specialize as seller’s agents or buyer’s agents. Choose a seller’s agent — you want someone in your corner who can sell your home fast for top dollar. (Some real estate teams have both buyer’s and seller’s agents, enabling you to buy and sell through a single group.)
- Follow your Realtor’s recommendations to make repairs and updates to your home to bring it up to market value, but don’t over-improve the property. In other words, don’t invest more than you can ever hope to recoup from the sale. Buyers aren’t looking for million-dollar homes in neighborhoods where most of the properties are selling for $400,000 or less.
- If you’re expecting a profit of more than $250,000 (or more than $500,000 for a couple) from the sale, consult your accountant to discuss the tax implications.
- If your area is experiencing a housing market slump, consider postponing the sale until the market recovers. However, if you don’t expect the market to recover anytime soon, you may be wise to accelerate the sale. A good Realtor can help you make the best decision.
- In a sizzling housing market, consider buying a new home before selling, so you don’t end up selling with no place to move into. In a down market, you may be better off selling first, so you don’t get stuck with two mortgage payments.
Buying a new home
When you’re in the market for a smaller home, take your time to find exactly what you’re looking for. Imagine that your new home will be the last home you’ll ever own. Does it have the potential to serve your current and future needs?Work closely with a Realtor (a buyer’s agent) to explore your options. Develop a comprehensive list of everything you’re looking for, but be open to suggestions from your Realtor, who may bring up factors you haven’t considered. Provide as much information and insight as possible, including the following:
- Price range
- Size (square feet)
- Number of bedrooms and bathrooms
- Style
- Location
- Amenities (pool, clubhouse, gym, social activities, and so on)
- Whether you’ll need assistance (meals, housekeeping, nursing)
- Your current situation, including why you’re downsizing
- Whether you plan to pay cash or finance the purchase
Exploring other living arrangements
When you’re downsizing, owning a traditional home or condo isn’t the only option. You may want to consider other living arrangements, such as the following:- Couch surfing — a series of brief stays with friends and family members
- Traveling and living in a van, bus, or RV
- Living on a boat/houseboat
- Living in an alternative structure, such as a tiny home, treehouse, shipping container, or yurt (portable round tent) — don’t knock it until you’ve explored these options
- Living in a commune — a property shared by people with similar interests and goals
- Sharing a home with friends or family members
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