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Downsizing Your Home? Stay Away From These 8 Crucial Mistakes

July 10, 2019 · Personal finance

Comparing Your Options: Downsize vs. Age in Place

Before committing to a move, objectively weigh the realities of staying in your current home versus relocating. Every situation demands a different approach.

Factor Staying in Current Home (Aging in Place) Downsizing to a Smaller Home
Financial Impact Avoids real estate commissions and moving costs, but locks up home equity and maintains high utility/maintenance bills. Frees up equity for investing or living expenses. Incurs upfront moving/selling costs. May lower utility bills.
Maintenance Burden Requires ongoing yard work, gutter cleaning, and roof maintenance (or paying contractors to do it). Significantly reduced. Condos/townhomes often cover exterior maintenance through HOA fees.
Emotional Reality Comforting and familiar. Allows you to keep established social routines and neighbors. Stressful transition period, but ultimately liberating. Forces you to declutter and simplify.
Physical Accessibility May require expensive retrofitting (stairlifts, bathroom remodels) if the home spans multiple levels. Allows you to purposefully select a home with a main-floor master suite and walk-in showers.
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