If you’ve ever said to yourself, “There are rooms in this house that aren’t being used,” it could be time to downsize. And if you’ve caught yourself saying “We live too far away from the grandkids,” it’s probably time to move, if you can. And if climbing up and down the stairs is taking a toll on your physical health, it’s definitely a signal that a change is imperative.
But before taking on such a tremendous task—after all, you’ve probably spent decades in your home, and those memories are cherished—there are smart ways to safeguard your equity and future financial needs that are all wrapped up in your house.
For many California homeowners, one of the biggest concerns about moving is property taxes. The good news is that Proposition 19 allows eligible homeowners age 55 and older, as well as certain disabled homeowners and victims of natural disasters, to transfer their property tax base to a replacement home anywhere in California, subject to specific rules. That can mean keeping a significantly lower tax bill even after moving, making downsizing or relocating much more affordable than many people realize.
Another common misconception is that you should simply sell the home “as-is” and move on. While you absolutely can sell as-is, doing so often leaves money on the table. The next generation of buyers has different expectations than they did 20 or 30 years ago. Worn carpeting, heavily personalized décor, crowded closets, and decades of accumulated belongings can make it difficult for buyers to envision themselves living in the home. Fresh paint, updated flooring, decluttering, and strategic staging frequently provide a return far greater than their cost. The goal isn’t to erase your memories—it’s to help buyers create their own.
The financial side of downsizing deserves just as much attention as the real estate side. Before making any major decisions, it’s wise to consult both a financial advisor and a qualified tax professional. The proceeds from the sale of your home may need to support you for decades to come. Planning ahead can help address future needs such as long-term care expenses, investment strategies, estate planning, and income requirements during retirement.
Just as importantly, the replacement property should fit not only your budget, but also your lifestyle. If stairs are becoming difficult today, they probably won’t get easier five years from now. Features such as single-level living, wider doorways, walk-in showers, proximity to healthcare, and being closer to family may become increasingly important over time.
This is where working with a Seniors Real Estate Specialist (SRES) can be especially valuable. The SRES designation is specifically designed to help older adults navigate the unique financial, emotional and practical challenges that often accompany a later-in-life move. As one of the few SRES designees serving our mountain communities, I regularly help clients evaluate whether staying put, modifying their current home or moving is the best choice for their circumstances.
The most important thing to remember is that a consultation doesn’t commit you to anything. Planning ahead isn’t about deciding to move tomorrow. It’s about understanding your options, protecting your financial future and creating a strategy before a life event forces your hand.
Knowledge is power. It doesn’t hurt to know, to plan ahead and to be ready so that if a move is in your future, it’s something you control—instead of something that controls you.
Theresa Grant is a real estate broker and columnist covering Lake Arrowhead, Crestline, Running Springs, and the surrounding mountain communities. Reach her at (909) 442-1345 visit www.HomesInLakeArrowhead.com, and follow her on social media @TheresaGrantRealtor. Theresa is a Broker Associate with REAL Broker Technologies. DRE#01202881.
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