6 Tips for Downsizing Your Home in Retirement

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If you’re looking to bring in some more money during retirement, experts often recommend downsizing your home.

Though it might seem overwhelming at first — especially if you’re moving decades worth of stuff into a smaller home — there are some strategies that can make the downsizing process a lot smoother. Here’s what experts recommend. 

Practice First 

You don’t have to jump into the deep end right away. Instead, Jacob Naig, the owner of We Buy Houses Des Moines, recommended testing out downsizing in your current home before committing to a smaller place.

“I have had clients block off parts of their home and live out of the bedroom, kitchen and main living area for a few months,” he said. “The exercise swiftly illuminated what they missed — and what they didn’t — granting them the confidence to look for the right-sized space without remorse.”

Pick a Strategic Location

Downsizing can be a great time to change your surroundings. Adam Hamilton, the co-founder at REI Hub, said to make moving advantageous to you by picking a place you’ve always wanted to live, or getting closer to family.

“If you plan to visit your kids and grandkids a lot in retirement, but you don’t currently live near them, you may want to consider downsizing to a small home in their area,” Hamilton explained. “That way, you can save a ton of money by not having to pay for regular plane tickets or gas to visit them.”

Think of Your Future Self

Even if you can climb stairs now, Joe Luciano, a broker associate at RE/MAX Bentley’s, said you never know what might happen in ten years to you or your spouse.

“Prioritize homes with elevator access, single-floor layouts or at the very least first-floor primary bedrooms. Stairs might not be an issue now, but aging in place comfortably matters long term,” according to Luciano.

Factor in Maintenance 

When downsizing, you don’t just want less space, you want less work, too.

“I’ve watched homeowners lose the joy of retirement by dedicating a weekend to upkeep,” Naig said. “Go with a townhome, or smaller and/or newer single family home with a new roof, efficient HVAC and minimal product landscaping and you will save yourself a lot of stress and a ton of money.”

Research Homeowners’ Associations

Moving to a place where you’ll be paying for a homeowners’ association (HOA)? Ryan Dossey, the co-founder at SoldFast, said it’s important to really look into that HOA before you start paying for it every month.

“Be sure to investigate the financial health of the HOA thoroughly. Someone else handling all exterior maintenance sounds excellent in theory, until they run out of cash. You want to ensure that they’re well funded with no upcoming special assessments or major projects looming,” Dossey noted.

Luciano added that you’ll also want to make sure the HOA doesn’t prohibit anything you already have your heart set on.

“Certain deal breakers I’ve seen for people coming from a single family home include: Not being able to have a medium or large dog, not being able to garden and even not being allowed to have a bird feeder at a townhome,” Luciano noted.

Focus on the Positive 

When getting rid of items or moving from a home you love, it’s easy to get hung up on what you’re losing. Oren Sofrin, the founder of Eagle Cash Buyers LLC, recommends that, instead, you look at everything you’ll be gaining from the experience.

“[Focus on] things like less maintenance, more freedom, simplified living, and reduced expense, and not your emotional fondness and attachment to your current home, or the stress of having to move,” Sofrin said. “Focusing on the goal you hope to accomplish would make it easier for you to understand that letting go and making sacrifices are only part of a process that leads to a very rewarding outcome.”

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