Why Downsizing Without a Plan Could Cost You $30,000

By Rob Gintner Rob assists people who want to ensure a smooth and efficient transition into a better space to call home, allowing them to embrace a more fulfilling lifestyle. What’s your home worth? Are you thinking of selling your home or interested in learning about home prices in your neighborhood? I can help you. Free Home Value Report For many homeowners who’ve been in the same home for 20 or 30 years, downsizing sounds simple. You sell the big house, buy the smaller one, and pocket the difference for retirement. What surprises most families is how quickly that equity, the value you’ve been building for decades, can disappear when the move happens without a tactical plan. What are the hidden currents of downsizing? I often see families start their transition by looking at new, smaller homes before they’ve even assessed their current one. One family I worked with fell in love with a condo and rushed to put their longtime home on the market. Because they were in a scramble instead of a planned shift, they didn’t have time for a proper assessment. They ended up accepting an offer $30,000 lower than their home should have sold for, just to avoid carrying two mortgages. They didn’t have a bad house. They had a bad timeline. My goal is to make sure you never have to make a fire drill decision with your equity. The hidden leaks in your equity. If a grain bin had a tiny leak, you wouldn’t ignore it. Over time, that leak represents real money hitting the dirt. Downsizing has hidden leaks, too. It could be unnecessary renovations that don’t pay you back. It could be moving expenses for a basement full of things you’re going to pay to throw away later. I like to say that paying to move 30-year-old National Geographic magazines, or, in the case of my grandmother, stacks of Women’s World magazines she swore she’d someday need a recipe from, is like paying for a first-class ticket for a hog. It’s expensive, and nobody is going to enjoy the ride. “They didn't have a bad house. They just had a bad timeline.” Use a spatial audit. This is where my architecture and design background comes in. Instead of guessing what to fix, we do what I call a spatial audit. We look at the operating systems of your home and find the small, strategic updates that make it show its best without draining your bank account. We make the math work so that pretty can follow. The goal is to make sure every dollar you spend on the house brings back two dollars at the closing table. Start with the numbers, not the packing tape. The most valuable thing we can do is sit down and look at the numbers before we ever start packing. We look at the likely sale price, the cost of the transition, and your potential net proceeds. When you have that picture clearly in front of you, the rushed feeling goes away. You’re not guessing anymore. You’re executing a plan. If you’ve been in your home for 15 years or more and you’re starting to think about what’s next, I’d love to sit down and map out a plan that protects your equity and puts you in control of the timeline. Call me at (612) 712-1168, email rob@rghteam.com, or visit blog.robgintnerhomes.com. I look forward to hearing from you. Want to work with me? Here are some ways to get involved. VIP Property Search. Search the entire MLS for your Minneapolis home. Looking for a Home in Minneapolis? Subscribe now to et our latest insights and tips to sell or buy a house. Latest Housing Market Insights