.png)
Do you look around your home and think that it’s just TOO MUCH for where you are in your life? Too much space, too much cleaning, too much yardwork, too much expense, too much upkeep in general?
Maybe the kids are all grown, or have left for college, and you are starting to think about moving to a smaller place with less upkeep.
You may have heard about 55 and up communities. So, what is so special about the age 55 anyways? First, the IRS allows us to withdraw money
from our employer’s retirement plan
penalty-free if we leave our job on or after age 55. This rule applies to 401(k)s and 403b(s), but not to traditional or Roth IRAs. Now keep in mind, penalty-free doesn’t mean tax free. Withdrawals will still be taxed as regular income.
And at this point in your life, your priorities might have shifted. The kids are grown, your career may be winding down, and the idea of maintaining a large home might not feel as rewarding or manageable as it once did.
So, why does downsizing after 55 makes so much sense for so many people?
LESS WORK
One of the biggest advantages is less maintenance and upkeep. A smaller home means fewer rooms to clean, less yard work, and fewer repairs. This gives you more time and money to enjoy your hobbies, travel, or spend time with friends and family.
LESS MONEY
Another major reason to downsize is to lower expenses. With a smaller home, you’ll likely reduce your mortgage (if you even have one), property taxes, utility bills, and insurance. This can make a huge difference, especially if you’re planning for retirement or already on a fixed income.
A MORE ACTIVE LIFESTYLE
Downsizing often opens the door to more freedom…the ability to have a more on-the-go, active, social lifestyle. Many people in this stage of life move to homes with fewer steps, like true ranch homes, or one with the primary bedroom and the majority of daily living on the first floor. Many people gravitate towards communities that offer amenities like walking trails, fitness centers, pools, and social events. Imagine stepping out of your front door and being able to join a pickleball game or a yoga class without driving anywhere! Reach out to me if you would like me to send you a list of the 55 and up communities in the Raleigh area.
When is the Right Time to Downsize?
One of the biggest questions I get is, 'When is the right time to downsize?' And the truth is, there’s no one-size-fits-all answer. It doesn’t have to be when you are 55. You may have reasons for downsizing when you are much younger, or it can be when you’re 60, 70 or even 80 or more years old. But here are some indicators that it might be time to make the move."
UNUSED SPACE
If you’re finding yourself with empty bedrooms and unused spaces, it might be a sign. Large homes are great when you’re raising a family, and at the same time maybe wanting a dedicated home office or workout space. But once the kids are out on their own, that extra space can start to feel like more of a burden.
PHYSICAL LIMITATIONS
Another sign it might be time is if your current home isn’t working with your physical needs. As we get older, things like stairs, large yards, and even just the layout of the home can become more challenging. I went from living in a ranch home to a three level home, and I miss one level living so much! Downsizing to a single-level home or a low-maintenance condo can make everyday life a whole lot easier.
FINANCIAL FREEDOM
And finally, if you’re thinking about retirement, downsizing can free up cash that you can put toward travel, hobbies, or even investing in a second home. Selling your larger home could give you the financial freedom you’ve been looking for.
How to Start the Downsizing Process
Let’s talk about how to actually start the downsizing process. You may have lived in your house for just a couple of years, or 10, 20, 30 or 40 years! You can accumulate a lot of stuff in 40 years! I know it can feel overwhelming, but I’m going to walk you through some simple steps to get started.
Step one: Declutter
Downsizing is the perfect time to evaluate what you really need and what you can let go of. Start with one room at a time. Ask yourself: 'Do I use this regularly?' and 'Does this item bring me joy?' Letting go of things can be tough, but think about how freeing it will be to move into your new space with only what you need. Click here to watch my video on Decluttering.
Decluttering can be quite an emotional and time-consuming process, so try to give yourself plenty of time to do this to avoid stress and pressure as much as possible.
Step two: Prioritize your needs and wants
Make a list of must-haves for your new home. Is it single-level living? Proximity to family? Walkability to shops and restaurants? Maybe you’re dreaming of a smaller home but still want a large kitchen for family gatherings. Having a clear idea of what matters most will make your search a lot easier.
Step three: Research communities
If you’re staying in the Greater Raleigh area, there are so many great neighborhoods and communities designed with downsizers in mind. From 55+ communities to low-maintenance patio homes, townhomes and condos, there’s something for everyone. Spend time visiting these areas, talking to current residents, and exploring the amenities. Or maybe this is your chance to try other areas of the country or the world. And you don’t always have to buy another house. Maybe you rent for a while and try on different places to see what’s a good fit for you.
What to Consider When Choosing Your Next Home
Okay, so you’ve decluttered, prioritized, and done your research—You’ve decided that you do want to buy a smaller home than you have now. So, what should you actually consider when choosing your next home?
First, think about size and layout. You’re downsizing, but that doesn’t mean you should feel cramped. Look for a home with a functional layout—smaller square footage doesn’t have to feel tiny. Open-concept spaces are great for making a smaller home feel larger.
Consider proximity to amenities. Whether it’s grocery stores, healthcare, or recreational activities, living near essential services will make life a lot easier. Do you prefer public transportation? Is the community easy to access local buses and other transportation means?
And finally, community and lifestyle. If you’re someone who enjoys socializing, look for a community that fosters that. Many 55+ communities offer clubs, events, and group activities that can help you stay active and connected. Now, if you are someone who doesn’t ever get out of the house and socialize much now, buying in a 55+ community doesn’t mean that just because the amenities are there, that you will take advantage of them. 55+ communities can be rather expensive because of all of the amenities offered. You don’t want to pay for them if you really won’t use them.
Selling Your Current Home
Of course, part of downsizing is selling your current home.
This can be an emotional process, especially if you’ve been there for decades and possibly raised a family in it. But it’s also an exciting opportunity to start fresh.
First, you’ll want to connect with a trusted Real Estate Professional- like me- who understands the unique needs of downsizers and can help make the process go smoothly. We can give you a task list to prepare your home for sale. This may mean making any necessary repairs, possibly updating key areas like kitchens or bathrooms, and of course, staging your home to attract buyers. A well-staged home can sell faster and for a higher price, giving you more to put toward your new place.
If you are in the Greater Raleigh area, feel free to reach out if I can help guide you through this process from preparing your house for market to marketing it effectively and guiding you through negotiations so you get the best deal.
Is Downsizing Right for You?
So, is downsizing right for you? At the end of the day, it comes down to your goals, lifestyle, and needs. Downsizing can offer you more financial freedom, less stress, and the opportunity to live a more active and engaged life. But it’s important to go through the process thoughtfully and do what is important for you at this point in your life.
If you’re considering downsizing in the Greater Raleigh area, I’d love to help! Whether you’re just starting to think about it or you’re ready to make the move, feel free to reach out for a free consultation. I can help you find the perfect home that fits your new lifestyle.
Jody Whitehurst, Broker
Keller Williams Legacy
(919) 830-4622
Comentarios