Downsizing to a Smaller Columbia SC Home Not Always Smart

Downsizing to a smaller Columbia SC home is not always simple, painless, or smart. Financially, it may not be all that beneficial either.

Selling a Columbia SC Home in a Fragile Market

Millions of Americans age 50 and older are looking around their spacious homes and are deciding they don’t need all that room anymore. The kids are gone, and they could really use the money from a sale to bulk up their retirement funds. But with the real-estate market still fragile, many baby boomers are getting a lot less than they expected for the larger home.

But even when the housing market was robust, many downsizers had little left over after paying off the mortgage and covering moving costs.

Consider a study from Boston College’s Center for Retirement Research that looked at older adults who moved in the 1990s and early 2000s due to a change in circumstances, such as a job loss or divorce. The report found that while these movers generally chose to downsize, they didn’t get much in the way of a financial windfall. In fact, on average, they plowed almost all of their home equity into their new homes, freeing up an average of just $26,000.

Putting a large Columbia SC home on the market and clearing out decades worth of possessions, can be dramatic. But for most, it is just plain overwhelming. For others, emotional attachments get in the way.

The potential problems don’t end once downsizers move into their snug new homes. With fewer square feet to heat, mow and pay property taxes on, many downsizers assume they’ll slash their monthly expenses. But unless you’re willing to move to an area with a lower cost of living, the savings may prove modest, at best.

One of the biggest problems people encounter after downsizing is also one of the most obvious: It can be crowded. You’re used to all that space, and suddenly, it feels like you’re living in a milk carton because you kept too much stuff.

If you’re downsizing to a smaller Columbia SC home, sort your belongings a little at a time so you don’t get overwhelmed; don’t make judgments about what your spouse should or should not keep; and take only what fits your current lifestyle.