After years in a big house, many people want less upkeep, lower bills and more freedom. Downsizing is more than a smaller home. It is about timing, taxes, what to keep and what to let go. Getting the order of events right can save money and a lot of stress.
Decide what you want from the next home
- One-level living or fewer stairs
- Less yard and exterior maintenance
- Closer to family, healthcare or friends
- A community with services or low-maintenance living, if that appeals
- Lower monthly costs, including taxes, insurance and utilities
Sell first or buy first?
Timing is the hardest part. If you sell first, you know your budget but may need a place to stay for a while. If you buy first, you have a home to move into, but you may carry two properties for a time. Some buyers negotiate a rent-back, which lets them stay in the old home for a short period after closing. Others make an offer contingent on selling. Each approach has trade-offs, and we walk through them with you.
Money questions to ask your advisors
- How the sale may be taxed. There are rules for a primary residence, so ask your tax advisor.
- Whether any property tax exemptions or freezes apply to you, which you can check with your county tax office
- How to use the proceeds without putting your retirement income at risk
- Whether a cash purchase or a smaller mortgage makes more sense for you
How we help
We help you sell and buy in a way that matches your timeline, and we are patient with the many decisions involved. We work with downsizers across Atlanta, Brookhaven, Decatur, Duluth, Ellenwood, Griffin, Hampton, Lawrenceville, Lilburn, Locust Grove, McDonough, Norcross, Snellville, Stockbridge, Stone Mountain and Tucker. If you want to sell to us directly for cash, we can talk about that too, with no commission on a cash sale to us.
Nil Patel is a licensed Georgia real estate salesperson with Keller Williams Realty Atlanta Partners. This page is general information, not legal, tax or financial advice, and nothing here is a commitment to lend. Talk to a lender and a real estate attorney about your own situation.