By DAVID HOUCK
Qualifying Broker
Atomic Realty

Downsizing for retirement takes planning, hard work, time and usually expense.

Let’s assume you’ve decided to move and downsize. Now it’s time to start, but how do you start? It isn’t a simple process, but it is a process. People have created careers helping other people through the process of downsizing.

Be realistic. Take a hard look at each item in your home. Identify the things that are most useful or loved. If you haven’t used something in more than a year, consider giving it to family or friends, donating it, or throwing it away.

Planning:

• Where do you want to downsize to? Do you want to live in the same area as you currently live or a new and different area?
• What style home will be practical to live in? A single level, or a home with stairs, how many bedrooms, do you require a garage or shop space?
• How much space do you need to be comfortable? Measure the furniture you want to bring and write down the dimensions to ensure it will fit in your next place.
• What’s the cost of housing in the new area that you would be interested in. Look at “Zillow” and “Realtor.com” websites to get some ideas.
• Communicate: Make sure your family knows what’s going on, too, especially if they grew up in the house.
• What sacrifices are you willing to make? Are you no longer going to have a sewing room? Will you not have space for your classic car? What are you willing to live without?
• How much time and money can you commit to the moving process? Once you have decided to make the transition, start the process of downsizing 6-12 months before you want to move.
• Consider if you move to a neighborhood, townhome, condo or community with a homeowners association, or HOA you may incur a monthly fee and onerous restrictions.
  • Some retirees believe renting out their old home rather than selling as an income stream is an option. Unless living locally, Atomic Realty does not suggest this. Calculate your net income and consider;
  • The cost of property management companies is not small,
  • The cost of upkeep will not be small as all repairs will be hired out at retail prices,
  • Many property management companies are lax in their maintenance of your property and only repair things when absolutely necessary,
  • You or your heirs will then be left with a rundown property that will not be worth as much as it should be.

Watch for our next articles that continue to focus on downsizing.

David Houck is the Qualifying Broker for Atomic Realty, with 40 years’ experience, a BS in math and physics and a doctorate in law. For more details on these issues and free selling and buying tips, see AtomicRealty.net.