Moving Tips for Empty Nesters: Simplify Your Transition to a Smaller Home

As an empty nester, transitioning to a smaller home can be both exciting and daunting. Downsizing offers a chance to simplify your life, reduce expenses, and embrace a new chapter. Here are some essential tips to help you navigate this transition smoothly.

1. Should I Downsize My Home?

Deciding whether to downsize is a personal choice that depends on various factors. Here are some considerations to help you decide:

• Lifestyle Changes: With children out of the house, you may no longer need as much space. A smaller home can be easier to maintain and more suited to your current lifestyle.
• Financial Benefits: Downsizing can free up equity tied up in your home, providing funds for retirement, travel, or other pursuits.
• Location Preferences: Moving to a smaller home might allow you to relocate to a more desirable area, closer to amenities, family, or friends.
• Emotional Readiness: Consider if you are emotionally ready to leave a home filled with memories. It’s important to be prepared for this change.

2. What Will It Cost to Downsize?

Understanding the costs involved in downsizing is crucial for planning. Here are some expenses to consider:

• Moving Costs: Hiring movers, renting a truck, or purchasing packing supplies can add up. Get quotes from multiple moving companies to find the best deal.
• Renovation and Repairs: Your current home may need some updates or repairs before selling. Similarly, your new home might require modifications to suit your needs.
• Real Estate Fees: If you hire a real estate seller’s agent, factor in their commission fees. These typically range from 3 -4% of the sale price. There may additional buyer agent fees which typically range from 2.5- 3%. FYI – both buyer and seller agent fees are negotiable.
• Closing Costs: Both selling your current home and purchasing a new one come with closing costs, including title insurance, appraisal fees, and legal fees to name a few.

3. What Cost Savings Will There Be After Downsizing?

Downsizing can lead to significant cost savings, making it a financially savvy decision. Here are some potential savings:

• Lower Mortgage Payments: A smaller home often means a smaller mortgage, reducing your monthly payments.
• Reduced Utility Bills: Less space to heat, cool, and light can lead to lower utility bills.
• Maintenance Savings: A smaller home typically requires less maintenance, saving you time and money on repairs and upkeep.
• Property Taxes: Smaller homes usually come with lower property taxes, providing additional savings.

4. Should I Sell Before I Buy or Buy a New Home Before I Sell?

Deciding whether to sell your current home before buying a new one depends on your financial situation and market conditions. Here are some pros and cons of each option:

• Sell Before Buying:
  • Pros: You’ll know exactly how much money you have to spend on your new home, and you won’t have to carry two mortgages.
  • Cons: You may need temporary housing if you can’t find a new home immediately after selling. Which may mean finding and paying for storage.
• Buy Before Selling:
  • Pros: You can move at your own pace and avoid the stress of finding a new home quickly.
  • Cons: You may need to qualify for two mortgages simultaneously, which can be financially challenging.

5. Should I Sell as a For Sale By Owner or Hire a Professional Agent?

Choosing between selling your home yourself or hiring a professional agent depends on your comfort level and expertise in real estate transactions. Here are some points to consider:

• For Sale By Owner (FSBO):
  • Pros: You can save on Seller agent commission fees. However, the buyer may bring their own agent whose fees may be negotiated into the sale contract.
  • Cons: Selling a home requires significant time, effort, and knowledge of the real estate market. You may also have limited access to marketing resources.
• Hiring a Professional Agent:
  • Pros: An experienced agent can handle all aspects of the sale, from pricing and marketing to negotiations and paperwork. They can also provide valuable market insights and access to a broader pool of potential buyers.
  • Cons: You’ll need to pay a Seller’s agent commission fee, typically around 3-4% of the sale price and maybe, depending on how your sale contract is written a Buyer’s agent commission fee, typically around 2-3%

Conclusion

Downsizing as an empty nester can be a rewarding experience, offering financial benefits and a simpler lifestyle. By carefully considering your options and planning ahead, you can make a smooth transition to a smaller home. Whether you choose to sell before buying, hire a professional agent, or go the FSBO route, these tips will help you navigate the process with confidence.

If you’re in the St. Louis real estate market and considering downsizing, these insights will guide you through the journey. For Additional Insights into downsizing your home, check out my YouTube Channel at https://www.youtube.com/@heybobstl

Happy moving!