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Is downsizing the right answer for you?

In the not-too-distant past, empty-nesters and retirees often deemed a 3,000-square-foot house excessive for two people and opted to downsize to something smaller. However, many homeowners defy the retirement trend of moving to smaller homes. Downsizing is a significant decision with both pros and cons. Is downsizing the right answer for you?

Is downsizing the right answer for you

If you’re contemplating moving to something with less maintenance versus staying put, here are seven reasons to avoid downsizing:

Mortgage Rates: With interest rates hovering around 7%, homeowners with lower rates in the twos and threes may find staying more financially advantageous. Moving to a smaller house may result in a smaller home with similar monthly payments.

Costs of Selling and Buying: Selling costs, including agent commissions and closing costs, can negate immediate financial benefits. Market conditions and capital gains tax implications may also impact the potential for selling at a desirable price. And don’t forget there are costs on the buy side as well.

Aging in Place: If your current home can be modified, downsizing may not be the best choice. Health concerns and mobility issues may require features designed for aging in place, which a larger home can accommodate. A larger home can more readily allow for live-in help.

Emotional Attachment: Apart from financial reasons, emotional attachment is a valid reason to skip downsizing. Many homeowners have deep sentimental connections to their homes, finding comfort in the memories and history tied to their current space. Retiring is already emotionally challenging, and adding a move can increase stress.

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One thought on “Is downsizing the right answer for you?

  1. Wendy says:

    I love our home but it’s a two story and the stairs may eventually become an issue. I have seen it with our parents. I don’t want to downsize necessarily but a one story home would give me peace of mind

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