Frequently Asked Questions

How long does the downsizing process actually take?

Ideally, give yourself 6 to 12 months. Rushing the process forces you to throw away items you might have sold, pay premium prices for last-minute movers, and settle for a new home that does not perfectly meet your needs. Start the decluttering process long before you contact a real estate agent.

Do I have to pay taxes on the money I make selling my house?

It depends on your total profit. The IRS Section 121 exclusion allows single filers to exclude up to $250,000 of profit (and married couples up to $500,000) from capital gains taxes, provided the home was your primary residence for at least two of the past five years. If your gain exceeds those limits, you will owe tax on the overage.

Should I rent for a year before buying a smaller home?

Renting is an excellent, low-risk strategy, especially if you are relocating to a new city or state. It allows you to test the neighborhood, assess the local healthcare facilities, and ensure the community fits your lifestyle without committing hundreds of thousands of dollars to a mortgage or cash purchase.