Downsizing or Upsizing? Which Makes Sense for YOU?
/This blog post on downsizing and upsizing is adapted from the television interview with Yvonne Jaramillo Ahearn, which aired on KITV, in December 2022, during the show "Get Your House in Order,” Hosted by Yunji De Neis.
How often do people usually move?
The average person in the US moves more than 11 times in a lifetime. This works out to a move about every 5-8 years. Most of the moves occur during a person’s younger adult years. People in the US move about 3 times more in their lifetime, on average than people in other countries. Some reasons for this are believed to be an ongoing search for a better work-life balance and for things like a more temperate client, better educational opportunities, better pay, and better housing opportunities … essentially the American Dream
What are other typical factors that cause people to move?
Those mentioned above … change in job, graduation from school, but also, at least ¼ of people move for family reasons … marriage, divorce, having children /school districts, death in the family, aging
What are factors which prompt people to upsize?
The main reasons most people upsize are as follows:
having children
new job or promotion, with raise in pay
parents moving in with children, children moving in with parents
retirees wanting larger, more gracious space for loved ones to visit, or to just enjoy the fruits of their accomplishments in their golden years
When do people tend to downsize?
People most often downsize:
At retirement or loss of job,
When becoming empty-nesters,
After the loss of a spouse,
When age or a disability affects mobility
With a desire to up-scale to a more expensive or desirable market or neighborhood, without an adjustment in price.
Notably, in this market of rising interest rates, people may also have to "downsize" their expectations and purchase a smaller home that they are used to renting or that they are used to living in on the mainland, regardless of none-of-the-above other factors.
Have the moving trends changed since the pandemic started? what are current trends?
Downsizing not as common, as it once was. People want space to be at home, especially if forced to be there for extended periods of time.
People care more about finding “appropriate” space than less space … e.g., less land/yard to take care of, no stairs, wider hallways – more accessibility.
Sometimes, it’s not about not "down-sizing” but "down-pricing” to take advantage of and pull out equity for retirement. For example, a move to a less expensive area in a similar-sized home.
What are pros and cons to downsizing?
PROS:
Owners can sometimes pull out equity
Smaller homes usually have lower utility and often lower maintenance costs (not necessarily lower prices), also, lower insurance
Smaller homes and yards can mean less maintenance, and more freedom (lock and go!)
CONS:
There's less space in a smaller home,
There's less space flexibility for extended family and visitors,
There's usually less storage space and garage space in a smaller home,
For some, there's a high emotional tax with giving up “things”
What are the first steps to planning a move?
Look at important lifestyle and budgetary factors
If you're a senior, part of this analysis is to determine whether you need assistance with your daily life activities and if senior living makes sense.
Call on a REALTOR for assistance, if you are looking to purchase or sell
Decide location & type of dwelling,
Find a place to live.
Can I buy a new home before I sell my current home?
YES, in many cases. Talk to your realtor about options
Contingent offer - write an offer contingent on the sale of your existing home.
Rent current property out versus selling. This may be a good solution unless an owner is not interested in becoming a landlord and/or managing a property. It may provide an income stream which would be useful to you.
Take an equity line on current property to purchase new one, sell after using equity funds as a bridge. This is a little riskier, but another option.
Once you have a plan for a new place to live, how do you get organized for a move?
· Purge items no longer of use: donate or recycle first
· Give certain items to family members or friends
· Call 1-800-Junk or similar for the rest
· Pack room by room, label and color code all boxes
· Wrap all fragile items, don’t leave empty space in boxes or in truck – pack tightly
What resources are available to help people downsizing?
· National Association of Senior Move Managers website at NASMM.org. The A Team Oahu is currently a provisional member.
· Caring Transitions (http://www.CaringTransitionsHonolulu.com) 808-369-9195
Pearl City, HI
What are other considerations when moving
Think long and hard about your real needs and wants. Most people get along just fine with less than they have. And other things are absolutely priceless. As yourself:
· If you have guests only once or twice every few years, do you really need a dedicated guest room?
· If you always eat at the breakfast bar or outside on the patio, do you really need a formal dining room?
· How often do you use that swimming pool in your backyard?
· How often do you use or do you even need half of the things you have stored?
· What actually brings you the most joy in your home?
· Would you sacrifice a 2-car garage for a stunning ocean view in a condo?
· Would a dedicated work-out area be something you would use daily?
· Is gardening what helps keep you grounded?
· Are your 3 large dogs and watching your grandkids play in the yard your favorite parts of life?
Of note: many new condo buildings have temporary guest suites available for family and other visitors, play areas and pools, specifically for kids, and allow pets. As the boomers (being the largest segment of the population) age, condo developers are much more attuned to the needs and wants of retirees when designing amenities and living spaces, to live vibrantly while aging in place.
Your local realtor has been through this process with many clients and can help you go through all of your options and considerations. We can help you find the right balance for you!