How to Downsize Your Home With a Plan

Downsizing can feel overwhelming because it is not simply a move. It involves deciding where to live, sorting through years of belongings, preparing a property for sale and coordinating several deadlines at once.

The key is to treat downsizing as a series of small decisions - not one enormous project.

Step 1: Decide What You Are Moving Toward

Before getting rid of anything, determine what your next home needs to provide. Consider things like location, monthly budget, number of bedrooms, storage space, yard maintenance, accessibility, and the distance from family or healthcare services. When looking at these things does it make the most sense for you to buy, rent or move into a senior community?

Once you decide where, obtain a floor plan and/or room measurements if possible. This prevents you from keeping furniture that will not fit. Work room by room and use the new space's floor plan to guide your decisions. (AARP)

Step 2: Choose How the Sale and Move Will Work

There are three common approaches:

1. Sell First; allows you to know exactly how much money is available for the move, but you may need short term housing if you don't know where you are moving to.
2. Buy First; allows you to move gradually and prepare the old home after it is empty, but you temporarily own two properties if moving into a home vs. a senior community.
3. Coordinate both closings; reduces the need for temporary housing but one delay can affect both transactions.

Depending on whether you are moving to a different home, renting or a senior community will help dictate which option is best for you. Before listing, speak with your lender and real estate agent about what you can comfortably afford. Also, whether sale contingencies, extended occupancy or another arrangement might be appropriate.

Step 3: Pack and Prepare

Whenever possible, begin several weeks or months before the move. Identify family members or professionals who can help. Work through one room at a time. Begin with easier areas such as a linen closet, pantry or guest room. Use boxes or bins and labels so everyone understands the system.

Create five categories:

1. Keep
2. Give to family
3. Sell
4. Donate
5. Discard

Some questions to ask yourself about each item:

• Will it fit in the next home?
• Do I use it regularly?
• Would I buy it again today?
• Do I have another item that serves the same purpose?
• Is keeping it worth the space it requires?
• Am I keeping it because I want it - or because I feel guilty?

Limit the number of "maybe" items. One undecided box is manageable; several rooms filled with undecided belongings simply postpones the problem. For sentimental items, consider keeping the best example instead of the entire collection. Photographs can also preserve the memory of items that do not need to be physically kept.

Step 4: Give Family Members a Deadline

Do not assume children or relatives want particular furniture, dishes or collections. Give everyone a certain time period to view the items or send photographs if they live a distance away. Let them know when the pickup deadline is and after that the items will be donated or sold. This keeps the process moving in a timely fashion.

Step 5: Be Realistic About Selling Items

Many homeowners overestimate how much ordinary furniture and household items will sell for. Before investing time in listings, messages and pickup appointments, decide on a minimum value that makes an item worth selling. Depending on the quantity and value of all of your belongings, you may want to consider an estate sale company, consignment or a garage sale. 

Set a selling deadline. If an item has not sold by that date, reduce the price or donate it. The goal is to complete the move - not operate a resale business for several months.

For charitable donations, keep an itemized record and receipt. The IRS generally bases a noncash deduction on the item’s fair market value, which is usually substantially lower than its original purchase price. Additional documentation may be required for larger donations. (IRS Publication 561, IRS donation-record guidance)

Step 6: Do Not Empty the House Before Getting Real Estate Advice

Decluttering is helpful, but completely emptying every room is not always necessary. Some furniture and decor may help buyers understand the size and purpose of a space. Ask your real estate agent:

• Which belongings should remain for showings?
• Which repairs are likely to matter to buyers?
• Should the home be sold as-is or improved first?
• Would professional cleaning, painting or staging be worthwhile?
• When should the property be listed in relation to the move?

Step 7:  Schedule Help Where It Provides the Most Relief

Depending on your situation, assistance might come from:

• Family and friends
• Professional organizers
• Senior move managers
• Estate sale or auction companies
• Junk-removal services
• Cleaning companies
• Movers
• Real Estate Agent

Schedule the move and who will be helping, confirm donation pickups and disposal dates. Obtain written estimates for any companies being used.

Step 8: Prepare a Moving-Day Essentials Kit

Keep these items with you rather than placing them on the moving truck:

• A change of clothing
• Medications
• Phone chargers
• Keys
• Jewelry and valuables
• Basic toiletries
• Pet supplies
• Basic tools and cleaning supplies
• Coffee, water and simple food
• Bedding and towels for the first night

Label boxes by both room and contents. Mark a few boxes "Open First" so you are not searching through everything immediately after arriving.

The Goal Is Progress, Not Perfection

A successful downsizing plan does not require getting rid of everything you love. It means choosing the belongings and living arrangement that best support the next stage of your life. 

If you are considering downsizing but do not know where to begin, I can help you develop a step-by-step plan for preparing the property, timing the sale and coordinating your next move.