The average cost of a home nationwide is $199,900, though in more expensive states like Colorado, California, and New York, the average price zooms up to over $435,000. Everyone knows downsizing to a smaller home is greener, but did you also know it makes shrewd financial sense? The concept is simple. Move to a smaller place and you’ll save more on your mortgage payments, taxes and utility bills. Before downsizing your existing home, you’ll need to do some planning. These are some tips for successfully downsizing your home both quickly and efficiently.
Preparing for Less Space
Your big home is full of all your big things, but your new space isn’t going to comfortably house everything you own. You’ll need to downsize your things too. This means making some tough choices in regards to all your stuff.
In the months before you move, begin reorganizing your things. Prepare piles of stuff – including things you have to keep, things you want to keep, things you can donate and what must be thrown out. If you’re looking to earn a little extra money for the move, why not host a garage sale or list items for sale online?
For those things that you want to keep, but won’t fit into the new place – like family heirlooms and other important items –renting a storage unit might make financial sense, especially if you’re in states such as Colorado. An example of a storage facility is Uncle Bob’s in Denver which can allow you to fit into a smaller living space, without having to sacrifice all of your worldly possessions. It’s simply a great way to save money, while keeping your things safe.
Taking Care of the Loose Ends
There’s a lot to remember when switching from a large home to a smaller home. Not only must you keep track of all your things, you also need to consider the school district, your commute to work and switching your utilities to the new location.
The best way to ensure all of these loose ends are dealt with is to create a list. Check off items as they’re completed. You’ll want to separate this list into different categories. For instance, one category should be packing. This area should include actions, like picking up extra boxes from a local grocery store and marking breakable items as fragile.
Call your utility companies at least a month in advance. This will give them ample time to schedule service, in case a technician needs to be present. Oftentimes, companies can just flip a switch shutting you down at one location and turning you on at another. Sometimes, a technician is required to do rewiring or service checks. Make a list of all your utility companies and check them off as you go.
The Final Touches
Contact your post office and let them know you’re moving. They will have you fill out a change of address form. This should ensure that all mail sent to your old address is forwarded to your new one. You wouldn’t want to miss a bill or important notice.
Clean the old place until it’s spotless. You’re going to be selling this home, if you haven’t already, and you want it to look as good as it can. If you’re expecting a profit from the old place, you should be extra invested in how you leave it. Make sure to fix any small cosmetic damages and wash all windows, walls and floors.
Overall, you’re making the right decision to downsize to a smaller place. You’re doing something right for the environment by using less, but also something right for your wallet. You’ll spend less in your new place, meaning more money in your bank accounts.
Have you recently downsized to a smaller home or living situation? What did you do with all your stuff?
12 Comments
I went from a 2,600 square foot 5 bedroom, three bath home to a 2 bedroom and den 1,850 square foot townhouse 16 years ago. For some, that is not downsizing! We had to cut down on a lot of furniture and stuff. There will be one more move in our future to a single story home and it will probably require more disposal of stuff. We had a garage sale and donated the rest.
@Krantcents – Garage sales are a great way to get rid of things and make a little money, too. We haven’t downsized recently, but might be in the near future. 🙂
My first home had 6 bedrooms and two bathrooms. My current home is 3 bedrooms and 1 bathroom. My next home will be a sailboat. I didn’t experience any pain downsizing the first time. I don’t expect to the next time either.
@Pamela – Whoa! 6 bedrooms is a lot of space! I can’t wait to read about your transition to a sailboat. Mr. LH and I have been thinking of something along those lines as a strategy to home ownership. It’s a radical idea, but it just might work.
We moved from a 2,000 sq ft house to a 1,000 sq ft condo. We sold a ton of stuff before we moved. Our condo is really full now though. I’d hate to move again.
@Joe – Cutting your living space in half must have been difficult. I can’t imagine having to reduce by so much space!
We downsized a couple of years ago and I love it. We got rid of a lot of stuff. I’m happier with less stuff!
Well, can’t quite downsize from a 538 sq ft apt. We just bought a 2 bedroom condo to eventually have a family in. Can’t agree with you enough that buying “too much home” can greatly impact long term wealth creation. Nice tips, LH!
@Chuck – 538 sq. ft. is definitely considered small and you probably wouldn’t want to downsize, especially if planning a family. Congrats on the condo purchase, I know HI isn’t cheap!
We’re actually preparing to up-size in the next couple of years in preparation for kids. I recognize all of the benefits of downsizing, however, and we definitely will upon retirement.
@Greg – When it comes to kids, there’s a need for more room. But you’re right, as you near retirement, you’ll probably want to downsize!
Great post. Downsizing the house does have its advantages. You’re post had given me a couple of ideas that I would think about when the time comes.