4 Signs You Should Downsize Your Home

Buying or building a roomy, spacious home is often a goal when you’re young with a growing family. But a big home is not always ideal — it can be costly, time-consuming or even wasteful. Yes, making the decision to downsize your home can be hard. But there are many reasons to move into a smaller home, especially as you age and get closer to retirement. In fact, some people see downsizing as a step forward, not backward — it can be a move toward a more free and manageable life.

Should you move into a smaller home? Is it time to downsize? How do you know? And what should you do to prepare for the move? 

Here are four signs you’re ready to take this step, along with steps that prepare you how to downsize your home.

1. The Maintenance Costs Too Much 

Maintaining a big house can be a lot of work. Between lawn care, standard maintenance, repairs and cleaning, the upkeep can leave you exhausted. Furthermore, as you age, certain household tasks may become more difficult to do, which means asking for help or paying someone else to do the work. 

That means it can get costly to maintain a large home, especially if you decide to pay someone to handle maintenance or other services. Costs for electricity, cooling and heat can also spike, which can seem like a waste if you’re not using the whole home the way you used to. Plus, you may become physically unable to cut the lawn, clean the pool or shovel a long driveway. Paying others to take care of your property will increase your cost of living. By downsizing your home, you’ll have more time for yourself and your loved ones, and you’ll be able to save money, too. It’s a win-win.

2. You’ve Retired or You’re Retiring Soon 

Retirement is an exciting time of change, moving from one phase of your life into another. It’s also one of the most common reasons to downsize your home. When you’re thinking about relocating in retirement, you’re considering cutting basic expenses and creating more retirement income by moving into a smaller, cheaper property that will likely reduce your property taxes, home insurance and mortgage payments. And if you’re moving to a new region, that’s particularly exciting.

Maybe you’re not retiring yet, but it’s on the horizon. Even if you plan to have your mortgage paid off by the time you retire, downsizing your house could still be a smart move. Having too much capital tied up in a home you don’t need means less retirement savings. By selling your current home, you free up a substantial source of retirement capital.

3. You Have a Lot of Unused Space 

Maybe all of those bedrooms and recreational spaces were ideal when your house was constantly buzzing with children. But once they’ve grown and moved into their own homes, you might be paying for space you’re not using. After all, it’s likely you and your spouse don’t need four bedrooms and three bathrooms. Even if you’ve paid off your mortgage, you could still be paying a hefty sum in property taxes, homeowners insurance, utilities and maintenance, all of which are higher for a larger home. A smaller home is more economical, easier to maintain and even cozier.

4. You’ve Been Bitten by the Travel Bug

It’s time to see the world! If you’re ready to finally fulfill those travel drams, downsizing your home for retirement is one way to free up your funds to pay for costs. It’s not uncommon for snowbirds to downsize into townhomes or condos that allow them to travel more because they don’t have to worry about maintenance. If your oversized mortgage and maintenance costs are eating up your travel money, it might be time to consider downsizing.

How to Downsize Your Home

When you’ve decided to downsize your home, use these steps can help you through the process.

Start Decluttering Early

At least a few months before selling your home and moving into a new one, start thinning out your belongings and consider how others might benefit from what you’ve acquired over the years. Donate items you won’t be taking with you, or have a yard sale. If you have adult children who no longer live with you, make sure they take their own belongings and keepsakes that have collected in your home over the years, and see if they want to take anything as heirlooms. Plus, once you’ve decluttered, packing gets much easier.

Stage Your House Before You Sell

If your house is old and your interiors look dated, consider some low-cost upgrades, like fresh paint, new bedding and fluffy towels. These items will help potential buyers better imagine themselves in your home. Be sure to clear out the clutter, too. Paring down your belongings before you sell your house will make the transition into your new home much easier.

Take Out the Tape Measure

Since you’re moving into a smaller home, your space in your new home will naturally be more limited. Measure your furniture to ensure it will properly fit in your new space. This also gives you a better idea of what you can take with you and what you might need to part with. And if you need to go furniture shopping for replacements, you’ll know what to look for.

Determine Your Lifestyle Needs

Think about your reasons for downsizing your home and the lifestyle you want to embrace as you move forward. If you’re going to travel a lot, consider a condo or townhome where you’ll have minimal maintenance. 

Create a Moving Checklist

Keeping track of the details related to your move can be overwhelming. But it doesn’t have to be stressful. Make downsizing a breeze by using a moving checklist.

Get a SuperCheck®

Downsizing your home is a big, life-changing event, and it’s important to keep your insurance top of mind when you move. Your local Farm Bureau agent can help ensure you’re protected and getting the discounts you deserve, while a SuperCheck can help discover any gaps in your coverage.