7 Downsizing Mistakes Even the Smartest Homeowners Make

Downsizing your home is a strategic move that can usher in a new chapter of simplicity, freedom, and excitement. Downsizing may save you some money or give you the ability to travel more or maybe both. We had a client tell us recently after they sold their large home in Rochester Hills, “we should have done it sooner”. I hear this often.

However, even the savviest homeowners can stumble into pitfalls during this process. To help you sidestep these potential downsizing dilemmas, here are 7 common downsizing mistakes:

1.  Underestimating Space Needs

Last year a client sold her house in Bloomfield Hills and bought a condo close by. The house she was living in was way too big for one person. She bought a cute condo which she figured would be ideal for her, especially since she is a snowbird and spent the winter months in Naples. The problem? She liked to entertain her family and grandchildren in the summer when she was in Michigan. But in her new condo she didn’t have enough space to do so.

Mistake:  Opting for a significantly smaller space without considering your actual lifestyle or storage requirements.

Solution:  Conduct a thorough assessment of your belongings, daily routine, and future needs. Choose a downsized space that comfortably accommodates your essentials and allows room for flexibility and how you use your home.

2.  Ignoring Emotional Attachment

Recently a client bought a ranch in Rochester Hills after raising their family in a large home in Oakland Twp. They were happy to host their 3 kids and their families from across the country for Thanksgiving. Their kids loved the new house but were disappointed to see all new furniture and the kids were sad to see their childhood desks and other stuff had been donated.

Mistake: Failing to acknowledge emotional attachments to possessions, leading to difficulties in letting go.

Solution: Approach decluttering with sensitivity. Check with your adult children first before making decisions. Create a system to categorize items by importance or sentimentality, making it easier to decide what to keep, donate, or pass on to loved ones.

3.  Rushing the Process

Last winter a client of put their Oakland Township home on the market and it sold in 2 days. The couple was delighted and bought a smaller house close by. After living in the house for 6 months, they realized they made a mistake. Their new house was too big and they really regretted not buying a condo.

Mistake: Hurrying through the downsizing process without adequate planning or time for thoughtful decisions.

Solution: Create a comprehensive downsizing timeline that includes decluttering, packing, and organizing. Remember you can control the timeline. Take breaks to avoid burnout and ensure that you're making choices that are best for you

4.  Not Factoring Future Needs

After a divorce a client of ours bought a house in West Bloomfield so his kids could stay in the same school district. His nest was now empty so he decided to sell his house and buy a townhouse in Birmingham. He loved the active Birmingham lifestyle and the townhouse was going to be his “911” house. The problem? He ended up having knee replacement and then both hips replaced. He could no longer handle the stairs in his new townhome.

Mistake: Overlooking potential changes in health or lifestyle that could impact your needs in the long run.

Solution: Consider your future requirements and choose a downsized space that can accommodate potential physical changes or additional assistance, ensuring you won't need to move again in the near future.

5.  Failing to Maximize Storage

After raising 2 kids and 28 years in the same house, a client of ours was dreading downsizing but felt she needed to do it. She did not want to part with her stuff and wasn’t looking forward to a smaller space. Finally she did it. She called her kids and told them to get their stuff. She sold some furniture  and donated some other stuff. She bought a smaller house and was happy. The problem? While her new floorplan was much better for her she didn’t have enough storage

Mistake: Neglecting to maximize storage opportunities in your new, smaller space.

Solution: Get creative with storage solutions. Utilize vertical space, invest in multi-functional furniture, and incorporate smart organization systems to make the most of every inch. Consider hiring a professional organizer.

6. Not Testing the New Lifestyle

Sometimes downsizing sounds like a good plan but isn’t. Recently a couple in Bloomfield Hills sold their house and bought a condo also in Bloomfield. They sold their house for top dollar and got a great buy on their new condo. The problem? They didn’t like their new, small space. While they no longer needed their large house, it still fit their lifestyle and they had no challenges maintaining it. Downsizing wasn’t right for this couple. Ultimately, we sold the condo for them and helped them find a new house.

Mistake: Transitioning to a downsized space without first experiencing the lifestyle changes it entails.

Solution: Consider renting a smaller space for a brief period before committing to a permanent move. This trial period will help you gauge the practicality and comfort of the downsized lifestyle.

7.  Overlooking Community Considerations

After living in Troy for years, our client was ready for his next adventure. He had recently accepted a new position where he could work remote 100% of the time. He wanted downsize and sell his house and buy a condo in Bloomfield Hills. The problem? He missed his taking walks in his very social neighborhood and felt he was too far from Somerset Collection and restaurants on Big Beaver. He felt isolated in his new condo.

Mistake: Focusing solely on the physical aspects of downsizing while neglecting the community and location.

Solution: Research and explore the amenities, social opportunities, and neighborhood vibes of potential downsizing destinations. Choose a community that aligns with your lifestyle and interests

Conclusion

Downsizing can be a liberating and enriching experience, but it requires careful planning and consideration to avoid common pitfalls. And remember there is no rule that says you must downsize. We are seeing many of our private clients opt to age in place.

If you do opt to downsize, start by assessing your needs. Acknowledge emotional attachments, pace the process, consider future requirements, maximize storage, test the lifestyle, and prioritizing community aspects. You can make informed decisions that lead to a successful downsizing transition.

For more information on downsizing your home, contact Jeff Higgins today.