{"id":6957,"date":"2025-11-04T08:23:28","date_gmt":"2025-11-04T13:23:28","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6957"},"modified":"2025-11-04T08:23:29","modified_gmt":"2025-11-04T13:23:29","slug":"thinking-of-downsizing-consider-costs-along-with-benefits","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/thinking-of-downsizing-consider-costs-along-with-benefits\/","title":{"rendered":"Thinking of Downsizing? Consider Costs Along With Benefits."},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"824\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2025\/11\/thinking-of-downsizing.webp\" alt=\"\" class=\"wp-image-6958\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2025\/11\/thinking-of-downsizing.webp 1400w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2025\/11\/thinking-of-downsizing-300x177.webp 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2025\/11\/thinking-of-downsizing-1024x603.webp 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2025\/11\/thinking-of-downsizing-768x452.webp 768w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Thinking of downsizing? For some deed holders, it\u2019s a fantastic choice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Just be sure you\u2019re on the lookout for unexpected costs in <a href=\"https:\/\/www.deeds.com\/articles\/with-a-million-homes-now-on-the-u-s-market-why-arent-prices-falling\/\">today\u2019s housing market<\/a>. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here, we go through some scenarios so you can spot potential issues related to moving into a smaller place. Don\u2019t let them catch you by surprise.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Looking for a Move-in-Ready Space? Check the Prices.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Townhomes and condos in homeowners\u2019 associations charge for the upkeep and amenities they offer. Plus, some charge extra for parking, and don\u2019t cover repairs for bathroom leaks, damage caused by a neighbor, and other unexpected issues. Be sure to tour the places in advance and talk with the residents about how they\u2019re managed and what unexpected costs crop up.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To get your hands on the deed to an updated or new unit, you could need to prepare for higher monthly payments than you pay in your current home.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Smaller once meant less expensive. Today, small homes are rare and desirable. Many buyers need and want small homes, so expect competition. And if your soon-to-be new neighborhood is walkable, has good schools, transit options and natural spaces, the demand for it will be that much higher. So, the asking price per square foot on your next property may be above the price you paid for your larger, current home.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Selling an Older Home? You Might Need Patience.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Buyers are taking more time than they were a few years ago to make their decisions. And buyers, just like sellers, often hope to find spruced-up, turnkey units.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Renovating before marketing your current home could be worthwhile \u2014 but here again, it\u2019s going to cost money. Ask a professional what to change to get the best return for your outlay. Agents know your market and have hard-earned advice to share.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You might find out that smaller design changes could be helpful, too. Getting rid of curtains, carpets, and wallpaper may be in order, to give your place a style upgrade and photogenic appeal for today\u2019s generations of buyers. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In any case, bidding wars aren\u2019t exactly raging out there. Price your home accordingly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">You Might See Higher Mortgage Rates and Taxes<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have a mortgage, and it\u2019s under 5%, be sure you want to give that up when rates are 6%+. Then there are taxes to consider. Property taxes could be quite a bit higher once you buy a new home. Different places have different tax rates, and sales can trigger higher assessments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In short: A home that\u2019s less expensive on its face may have higher mortgage payments and taxes than you\u2019d expect.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And of course, be sure to think about your new home\u2019s proximity to your dentist, doctors, grocery stores and so forth. Will transit costs and bills change? Factor this in, too.<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background has-small-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\"><strong><em>A reverse mortgage is one way to reach your home equity for cash. You might ask your financial adviser if it\u2019s a better option than downsizing for meeting your financial needs.<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Selling a Home Comes With Costs. Diligence Is Due.<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Today\u2019s <a href=\"https:\/\/www.deeds.com\/articles\/first-time-buyers-get-ready-for-these-extra-costs\/\">closing costs<\/a> are not for the faint of heart. Then there are moving expenses. Don\u2019t forget the cost of setting up new utility accounts and the overlapping housing payments you might end up making when you\u2019re leaving one address for the next. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And after all that, you\u2019ll probably need to furnish and touch up your new place.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do the calculation on paper. Find out what you can really expect to save through your move. Sometimes, staying where you are is the simpler \u2014 maybe even cheaper \u2014 way to go.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Please note that <em>Deeds.com <\/em>doesn\u2019t provide legal, tax, accounting or financial advice. Consult with your own advisers for guidance. If you\u2019ve undertaken your due diligence and are good to go, excellent! Best wishes in your new, more manageable space.<\/p>\n\n\n\n<div class=\"wp-block-group has-accent-5-background-color has-background has-small-font-size is-layout-flow wp-block-group-is-layout-flow\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"wp-block-paragraph\"><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Robyn A. Friedman for <em>Kiplinger.com<\/em>: <a href=\"https:\/\/www.kiplinger.com\/retirement\/to-downsize-or-not-to-downsize-that-is-the-retirement-question\" target=\"_blank\" rel=\"noreferrer noopener\">To Downsize or Not to Downsize? That is the Retirement Question<\/a> (Aug. 17, 2025).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Claire Wolters for <em>The New York Times<\/em>: <a href=\"https:\/\/www.nytimes.com\/2025\/10\/14\/realestate\/downsizing.html\" target=\"_blank\" rel=\"noreferrer noopener\">The Hidden Costs of Downsizing<\/a> (Oct. 14, 2025; originally published in print as The Dos and Don\u2019ts of Downsizing). \u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Riley Jones for <em>SavingAdvice.com<\/em>: <a href=\"https:\/\/www.savingadvice.com\/articles\/2025\/06\/05\/10157939_why-downsizing-can-cost-you-more-than-staying-put.html\" target=\"_blank\" rel=\"noreferrer noopener\">Why Downsizing Can Cost You More Than Staying Put<\/a> (Jun. 5, 2025).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gregory Erich Phillips for <em>SmartAsset<\/em>: <a href=\"https:\/\/smartasset.com\/mortgage\/the-hidden-cost-of-downsizing-your-home\" target=\"_blank\" rel=\"noreferrer noopener\">The Hidden Costs of Downsizing Your Home<\/a> (updated Sep. 6, 2023).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And as linked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More on topics: <a href=\"https:\/\/www.deeds.com\/articles\/the-senior-living-market-cant-keep-up-with-demand-a-deed-may-be-the-best-senior-living-plan\/\">A deed may be the best senior living plan<\/a>; <a href=\"https:\/\/www.deeds.com\/articles\/passage-from-deed-to-deed-rocket-mortgage-now-offers-bridge-loans\/\">Rocket Mortgage\u00ae bridge loans<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Image credit: <a href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Downsize_-_The_Noun_Project.svg\" target=\"_blank\" rel=\"noreferrer noopener\">The Noun Project<\/a>, via Wikimedia Commons, licensed under CC0 1.0 (universal public domain).<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thinking of downsizing? For some deed holders, it\u2019s a fantastic choice. Just be sure you\u2019re on the lookout for unexpected costs in today\u2019s housing market. &nbsp; Here, we go through some scenarios so you can spot potential issues related to moving into a smaller place. Don\u2019t let them catch you by surprise.<\/p>\n","protected":false},"author":2,"featured_media":6958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[107],"tags":[589,310,445,189,329,140,2935,313,179,590,477,2936],"class_list":["post-6957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-elder","tag-downsizing","tag-hidden-costs","tag-home-selling","tag-homeownership","tag-housing-market","tag-mortgage-rates","tag-moving-expenses","tag-property-taxes","tag-real-estate","tag-retirement-planning","tag-seniors","tag-smaller-homes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Thinking of Downsizing? 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