Common Downsizing Mistakes and How to Avoid Them

Article Written By: Shirley Martin

Downsizing can be hugely beneficial for many seniors, but it requires some careful planning. Finding the right home and having the ability to think about what the next five or ten years will bring are both important aspects, as well as budgeting and figuring out financing. There are some common mistakes involved in the process that might hinder your ability to downsize successfully. These include not taking the full cost of your new home into consideration, failing to factor in paring down your belongings and not having a good plan for moving day. 

Fortunately, there are many things you can do to make downsizing go smoothly. Give yourself plenty of time to prepare, for starters, and make sure you do thorough research before deciding on a home. This includes researching the neighborhood and home prices (Boise homes sell for a median price of $535,000 as of September 2021). Look online and in person to get familiar with the area. Don’t rule out senior communities, as there are many options these days that allow you to own your home while enjoying the benefits that retirement brings.

Read on for a few of the most common downsizing mistakes and how to avoid them, presented below by Black Pine Real Estate.

Going over budget

One of the most common mistakes any potential homeowner makes is going over budget, so it’s important to consider all the financial aspects before you commit to anything. Closing costs, homeowner’s insurance, and the cost of moving should all be taken into account when you’re creating a budget. Look into your financing options so you can afford an accessible home that will keep you safe throughout your post-retirement years. Senior veterans should look into VA loans, which don’t require a down payment or private mortgage insurance and can get you better rates.

Not planning for moving day

Downsizing isn’t just about finding a smaller home; it also requires you to think about your belongings and how to make them work in a new space. Going through the decluttering process in advance will help you on moving day because it will be one less thing to worry about. If possible, take some measurements inside your new place so you’ll have an idea of which pieces of furniture will fit. You’ll also need to budget for the cost of hiring movers (generally $90 to $120 per hour). 

Choosing the wrong location

Downsizing is a wonderful way to save money but only if it’s done right. Many people assume they will immediately see an influx of cash once they reduce their mortgage payment, but there are several factors to consider. For instance, the area you move to may have a higher cost of living, or you might have to switch to different utility companies that have a higher payment structure than you’re used to. Do some thorough research online into everything you’ll be paying for in your new home, and get quotes if possible.

Failing to make lifestyle changes

With downsizing comes the need to make a few lifestyle changes, and while they’re often not major, they can play a role in your happiness and health. Moving to a smaller home doesn’t automatically guarantee your safety as a senior. Although it can help to prevent falls and other issues, you’ll still need to remove clutter from the new home, exercise daily, and make safety modifications, such as adding lighting so you can see properly. 

Downsizing can help you save money and remain independent as you grow older but only if it’s done correctly. It’s important to think about each part of the process before you make any major decisions. Knowing which mistakes to avoid will help to make the move a smooth one.

Black Pine Real Estate serves buyers and sellers of luxury properties in Treasure Valley and Valley County. You can get in touch with us by calling 208-830-4847.