How to Downsize Your House

The kids have moved out, you've simplified your life or you're just tired
of having a big house that takes a bite out of your free time (and pay
check). Moving to less spacious digs requires a change in lifestyle, but
planning makes the transition far more seamless.

Difficulty: Moderate

Instructions

1. Consider the downside of downsizing. You'll give up the comfort and familiarity of your current home--and perhaps your town or neighborhood--and you'll have to contend with the stress, cost and aggravation of moving (see 97 Plan a Move).

2. Look just as frankly at the upside. Your rent or mortgage payment may go down. You may also cut back on some living expenses such as energy costs, resulting in more cash in your pocket. You'll probably have more free time because you'll have less house to maintain.

3. Opt for the simplicity and amenities of condominium complexes or retirement villages. Keep in mind that both have rules and regulations that some people may find restrictive. (On the plus side, somebody else cuts the lawn and cleans the gutters.) Read the fine print and talk to future neighbors before you sign a contract.

4. Measure the dimensions of the rooms you'll be moving into, and measure your current furniture to determine what you'll bring and what you'll need to unload.

5. Take this opportunity to reduce clutter and simplify your life. Get rid of unused stuff and things you won't have room for. See 285 Organize Your Empty Nest.

6. Go through all your treasures and enjoy the trip down memory lane. Then sell the crap. See 95 Plan a Yard or Garage Sale and 12 Get Rid of What You Don't Want.

7. Capitalize on your fresh start to tinker with your systems and get organized. See 1 Get Organized.

8. Determine your storage needs for clothes, kitchen supplies, tools, sports and hobby equipment, pet supplies, vehicles and so on. Make sure there's space for everything in your new place. See 132 Expand the Capacity of a Small Room and 131 Capture More Storage Space.

9. Tally up the money you've made selling your home and all your old stuff. Put most of it to work (see 239 Track Your Investments), then reward yourself with a great vacation. See 405 Plan a Trip.

Tips & Warnings

• Give yourself plenty of time to sort through your things. Do a small section of the house at a time, and don't spend more than four hours a day sorting your stuff.
• If you're selling a house you've lived in for at least two of the last five years, up to $250,000 in profit is taxfree ($500,000 for couples who file jointly). If you move from a home you owned to a rental, you lose income-tax deductions for mortgage interest and property taxes.
• Before making any commitments to a new home, consult a financial adviser to find out all the tax consequences of your move.

[stowawayannie]

on 10/18/2009 This was taken word for word from Peter Walsh's book " How to Organize Just About Anything". The numbers refer to other articles in the book.

[chava812]

on 4/20/2008 Good timing for an article on downsizing, but I have to ask - what are the numbered articles you refer to? Can we get a link to them instead or told whether they are a eHow-to article? I can use a few of them, just deciding to relocate with my fiance (combining households, another time to "downsize") - thanks for posting this!