The Seven Biggest Mistakes Home Sellers Make When Downsizing... And How to Avoid Them

Downsizing… even the word can create fear, anxiety, and insecurity to the home owner or their family members because it can be a major change to your life!  Going from a familiar, comfortable environment into the unknown.

And yet, you may know you want or need to start considering a transition.  The house you now reside in is too large or does not work well for your current needs.  The demands that come with it are cleaning, repairs, maintenance, yard work, and other items you’d prefer not to do or maybe cannot do any longer.  And the amount of “stuff” that has accumulated over the years needs to be dealt with.

Like anything else, the more you discover about home downsizing, the better your result will be!

That’s the goal of this article.  Through more than 25 years of working with seniors and their families that want or need to downsize a house and move to senior living, we’ve learned a great deal to help make the transition easier. 

Downsizing can be more difficult than it needs to be if you don’t take the time to become familiar with the many facets involved in moving to a smaller living accommodation. 

This article contains specific items on the ins and outs, the do's and don’ts, what to avoid and what to embrace, so that after you’ve made the transition to senior living, you’ll be in a better place.

Mistake #1: Failing To See the Big Picture

Many who decide to downsize don’t realize soon enough that it is a two-sided equation.  They have decided to sell their house, however they don’t have a clear picture of what the selling process involves and secondly, where they will move to.

There’s an old saying “putting the cart before the horse,” and for some people this definitely applies when downsizing their house.  Because of this, it is very important that you fully think out and decide where you’re heading.

Some options include:

• A smaller house
• A condo
• An apartment
• Moving in with an adult child
• A senior community (independent living, assisted living, or other)

There are choices, and as you consider downsizing your house, it helps to figure out your next step.  In addition, you will want to know, once you decide to make a move, there’s actually availability where you want to be.  An example here is you’ve decided to relocate into an apartment community in a particular neighborhood, but you discover there are no vacancies at this time.  Its not uncommon for highly desired communities to have a waitlist.

Do you have a plan B?  You may need one.  Other than the option of moving in with an adult child, there will always be the question of availability, so before you start packing, you’ll need to know.

Knowing this information will provide some peace of mind as you start your home downsizing journey. 

Mistake #2: Not Assembling a Strong Team

To win in sports, it takes a team effort from a group of dedicated people.  Even in individual sports, athletes must rely on a coach and a trainer, among others as part of their team.

The same “team” concept holds true when selling your house and downsizing.  Earlier, we asked an important question to consider: “where will you be going?”  The answer serves as the end result to the downsizing process.  However, there are a multitude of other questions/scenarios to consider, which will cover in this article.  For now, let's focus on what you must do to place yourself in the best possible position to achieve your goals.

First, who is going to be the “leader” of your team?  This should likely be a real estate professional who is highly experienced with home downsizing scenarios.  Some things to consider when selecting this professional:

• Does this person have a track record of accomplishment, specifically working with seniors and their families and the particular needs you have?
• Is this person familiar with the various home downsizing options so that they can provide outstanding guidance and direction to help decide the best options for you?
• Can they offer good advice of what you need to do to get your house ready for sale so its attractive to potential buyers?
• Will the real estate professional know the local market well enough, understanding realistic values and potential values of your house and the neighborhood?
• Will they be able to give you realistic expectations of what you may NET from the sale of your house in its “as is” as well as “potential” value?

There are other factors involved in this process, but choosing the right real estate professional is a key decision in creating a good home downsizing team. 

Mistake #3: Getting Overwhelmed

The age old question goes like this:  “How do you eat an elephant?”  The answer: “One bite at a time!”

The same applies with downsizing your house.  If you stop and think about all that’s involved, you’re likely to get overwhelmed.  Yes, there’s a lot to do, but as with the item above, you just take it one step at a time. 

Again, this is where having a trusted, experienced real estate professional who is a specialist at downsizing can be a major asset.  They can guide you through this transition.  It's important to have a game-plan in place, a roadmap if you will, to follow.  This in itself, will give you some peace of mind and comfort during the process.  Some things to take note of:

• What repairs or deferred maintenance needs to be done to put your house in a good sellable condition?
• What’s the best way to market your house?
• Do you have accurate pricing and valuation information for your house?
• Are you going to live in the house until its sold, or find other living arrangements?

All of the above are important items to consider.  Each will have a definite bearing on the process of selling your house.

Along these lines, in particular, is the last bullet point, regarding whether you plan to stay in the house or move out.  If it is the former and you will be living in the house while selling, then be aware of a common mistake many sellers make.

This will be covered next and is a key item in getting your house sold in a timely fashion.  Failing to adhere to this will potentially put you at a major disadvantage with potential home buyers!

Mistake #4:  Not Seeing the Forest for the Trees

It's your house, which you know like the back of your hand.  Because of this, its easy to be lulled into a trap.  You walk through the various rooms and do so with the blinders that come with being the owner.  Here you aren’t always able to step back and see what is there.  In a word:

CLUTTER

Potential buyers want to image what the home will look like with their things in it.  Items such as furniture, pictures, and their personal keepsakes enter into a buyer’s “visualization process.”  Because of this, every place where you have something displayed makes it more difficult for the potential buyer to put their “stuff” into the picture.

Unless you are planning on moving during the selling process, this is something you (and potential buyers) will have to deal with.  However, all is not lost!

The answer is to remove as many things as possible, especially those items which can cause a negative imprint of the space.  Do what you can to not have overcrowded rooms or rooms with too much “stuff.”

Your real estate professional can provide guidance in order to make sure your house looks its very best!  It may also be beneficial to consult with a professional home stager, someone that can help present your house to attract potential buyers.

If nothing else, your real estate professional can serve as a fresh set of eyes to help get your house sold.  Its all about making your house as attractive as possible so that potential buyers see your house as where they want to live!

Mistake #5: Unrealistic Expectations

Expectations.  We all have them, no matter the circumstances.  It's human nature!  We think about the given situation and our mind forms an opinion, or expectation.

It’s the same with the process of selling a house and downsizing.  Expectations can become more clear once you’ve set a clear path for where you are heading.  Here, you will be able to see first-hand where you will be living.

The second part of the scenario is more out of your control.  That’s because the potential buyer of your house will have a say-so in what you will actually NET from the sale.

You can certainly ask whatever you want for the property.  It's your right as the owner.  That said, there is usually a “asking price” and the “selling price.”  Then there is the actual “net” amount you will receive from the transaction.

Many sellers think with their heard and not their head when formulating the initial asking price.  That’s because they get emotional in regard to the property.  It's understandable.  It’s the seller’s home.  It's likely a family was raised in the house.  You may have owned the property for literally decades and created many memories.

For many, all these thoughts influence the asking price.  Again, this is normal.  However, the bottom line is that this is a business transaction.  Indeed, you as the seller are trying to get every possible dollar from the sale.

In the end though, the market will dictate the price for the property, and it is up to you to decide if that amount is acceptable. 

Mistake #6: Not Being Open to All Possibilities

As the home owner, you will be the final decision maker as to what you will or will not accept for the house.  Having a real estate professional can help in determining what that amount will be in order for you to accept the result and move on.

The real estate professional can research what comparable houses have sold for in your neighborhood in the recent past.  They can also see what’s currently on the market (your competition), and what was on the market but didn’t sell.  They will also be able to show you the condition of these houses.  All of this is very good information to have! 

Part of the decision regarding an asking price may be based on how quickly you want or need to move.  It may be a result of a health-related matter, or that the apartment or senior community is available right now and may not be in the near future.  There are often “factors” that contribute to the timetable to sell and move.

Did you know that there are other options available to sell your house, in its current “as is” condition, and at a fair price?  There are professional home buyers that provide benefits that may be of value to you and your unique needs and be just what you are looking for!

Here again, a real estate professional that has experience working with home owners and their families wanting or needing to downsize can help to provide the benefits or negatives or the various selling options.

It certainly doesn’t hurt to explore the various options to sell your house, whether you are wanting to make a move in the next few days, weeks, or months.

Your goal is a smooth transition, where when all is said and done, you are satisfied with the outcome, no matter who the buyer is!

Mistake #7: Fear Of the Unknown

One thing’s for sure… the decision to sell your house and downsize means you are in for a visit into unchartered territory. 

If you are planning to move in with an adult child, this may not be as much as an unknown as the other options.

Otherwise, you’ll be looking at a smaller house, condo, apartment, or some type of senior community. 

Rest assured that many people, just like you, have gone through the downsizing process and made it successfully to the other side.  They are living a life where they know they made the right decision for them.

The unknowns can certainly be scary, but it can also be an exciting and rewarding experience. 

The right real estate professional can be an important and valuable resource to make this process go as smoothly and stress-free as possible.  If you’d like to discuss your options, and how Home Downsizing Solutions can help with your specific situation, just let us know!  With our 25+ years of downsizing experience, we are confident that we can help!