John Mazzara - GAIN MORE FREEDOM BY DOWNSIZING YOUR HOME

GAIN MORE FREEDOM BY DOWNSIZING YOUR HOME

GAIN MORE FREEDOM BY DOWNSIZING YOUR HOME OUR HOME

John Mazzara

Table Of Contents

Home Is Where The Heart Is

What Are You Looking For In Your Next Home? 8

Single-Family House Or Townhouse

Condo Or Apartment Living

Community Living

Is Selling Right For You?

Understanding The Home-Selling Process

Common Seller Mistakes

Improve Your Chances Of Selling

10. Upgrading With ROI In Mind

11. The Negotiation Process For Sellers

12. What You Need Vs. What You Want

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13. A Guide To Searching For The Right Home 114

14. Common Buyer Mistakes

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15. A 12-Step Guide To Buying A Home

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16. Home Loan Shopping 101

144

17. Negotiation Dos And Don’ts For Buyers

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18. How Agents Help Sellers And Buyers

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19. How To Hire A Fantastic Agent

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Want Top Dollar For Your Home? our Home? There are many different things you can do to sell your home for top dollar. If you use these strategies, you get a higher sales price. But, miss any of these crucial components, and you risk settling for a lower price than you deserve. That’s why I offer a Free “Sell For Top Dollar” Consultation. I’ll meet with you, take a look at your home, and show you exactly what needs to be done to sell for top dollar. I’ll give you advice on marketing, pictures, pricing strategy, staging, negotiations, etc. Each of these items is crucial to your sale. Get them all right, and you’ll sell for top dollar. But, neglect one of them, and you risk settling for less than you deserve. So, if you’d like my Free, No Obligation, “Sell for Top Dollar” Consultation, give me a call at 612-386-7027 We’ll schedule a time that works for the both of us to meet. I look forward to helping you!

Best Regards,

John Mazzara CFP RICP WMCP CLU CHFC CEBS CMB MBA MS AIF 612-386-7027

John Mazzara CFP RICP WMCP CLU CHFC CEBS CMB MBA MS AIF 612-386-7027 john@johnmazzara.com http://www.MinneapolisStPaulHomes.com

RE/MAX Results 7700 France Ave S Suite 230 Edina MN 55435 NMLS # John Mazzara - 332556

Foreword When I first ventured into the real estate industry years ago, I did so with the hopes of helping sellers like you avoid the headaches often associated with the home-selling process. In my years of experience, not only have I helped alleviate the stress of selling for numerous clients, but I’ve also accumulated years of knowledge to help them get more money for their homes in the least amount of time. I decided to share all of my expertise in one place with potential clients. And that’s why you’re receiving this book. I want to help you have the best possible home-selling experience. And by that, I mean I want you to 1. Get the most money possible for your home, 2. Sell in the least amount of time, and 3. Avoid the headaches most commonly associated with the home-selling process. Think of this book as my gift to you. It contains insider advice on the home-selling process to help you achieve your ultimate real estate goals, including: • Secret strategies to sell your home for more money • Marketing techniques employed by top agents • Advice on how to appeal to today’s buyers • And much, much more If, after reading through it, you want to hire me to help you sell your home, I’d be more than happy to meet with you to discuss a specific plan to sell your home. Happy reading!

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Testimonials & Reviews for John Mazzara Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me: Here’s a list of people whom I have helped buy or sell a home, and what they said about working with me:

Excellent Service!!!!!!!!! — Kim K

JOHN MAZZARA IS THE BEST! — Fallah J

Great advice, effort and work. Couldn't ask for a better person to have in our corner. Made it easy and comfortable to buy and sell a home. What a 2016 it was! — Houston N I had a great experience with john. If you are looking for an honest, personable, and knowledgeable agent he is the one! He was really patient in helping me find the right home. I couldn't be happier and plan to seek his help in future real estate transactions. — Josie S John is thoroughly knowledgeable and customer-service oriented. There is no one better. He works for his clients and goes above and beyond. He is a professional who listens to you, protects your interests, and gets right to business. I've recommended him to several people, including family, and I will continue to do so. He's the best. Look no further. — Kris B ix

We couldn't have asked for a better experience with a realtor. My husband and I especially appreciated John's professionalism and quick response to any questions we had. — Kathy J

Excellent — Ben H

We always felt we were in good hands from the beginning of the home buying and selling process until the end. John is extremely knowledgeable and always used a low-pressure approach to help us make the hard decisions that were best for our family. — Sharriah A John took the time to make sure I understood every aspect of the home buying experience. I have repeatedly submitted John's name to friends and family members interested in potentially buying or selling a home. — Bob K John Mazzara was great!! He is knowledgeable, patient, and worked well with us to prepare for and work the sales process. We got our first (and acceptable) offer within 24 hours of when we first put it up for sale. Thanks, John!!!! — Ben J Our experiences with John have been the most positive Real Estate transaction we have ever experienced. I don't think there has ever been a question he hasn't been able to answer. Always returns calls. A delightful person in every way. — Sharon T I could not have asked for a better home buying experience than we had with John! He is knowledgeable, easy to work with, answered questions at all times of the day, and made sure that

we didn't settle but found the home perfect for us! No doubt about it that we will use John again and recommend him to our friends and family! — Brittani H. John was great to work with. We highly recommend him! John helped guide us through the buying process as first-time homebuyers and made us feel so informed. When we outgrew our starter home John helped us with the sale of our first and purchase of our 2nd home. John was always available to help (us even at odd hours). He always had a positive attitude and sense of humor with each and every one of the 100+ houses we looked at. John helped 2 very picky buyers find the perfect house...Twice. — Ashley P. One of the best experiences I've had with a realtor. Looking forward to working with John Mazzara in the future — Khang Y. John has helped me with 2 real estate transactions, and he was a great buyer and seller agent. He represented my interests, and I like his friendly, direct approach. He has a large network, and I appreciated his referrals to a variety of contractors. I will continue to recommend John to my friends. — Barb H I have bought a sold a couple of houses with John and his amazing team...they never disappoint! His expert advice and knowledge in so many areas makes the whole process as painless as possible. More than that, he's trustworthy, kind and patient. I would highly recommend his services to anyone looking to move. He will take care of you! — Noemi H

John was very helpful and found us the home we always wanted

within a week! — Jake S

As rookie real estate investors the service and insight we received from John Mazzara and RE/MAX have been top shelf. John receives our highest recommendation for anyone's real estate needs. — Tom B John was so unbelievably helpful and had nothing but our best interest at heart. You could tell that he truly cared about making the home purchasing process, as care-free & fun as possible. After all, it was our first home! — Nicole B John was great! He really had my best interest at heart. He was patient and quick to answer my calls and emails. The experience was great. — Michelle L. John is a great agent for us. He is honest and is willing to share with us examples of how we can reach our goals. He also is willing to spend time going through our goals and determine what works best for us. — Casey J. John was great in helping us navigate through the complexities involving buying and selling our homes in 2015. We found John to be honest, understanding and, was responsive to our needs and goals. — Mohamed P. John went above and beyond to help me find my current home. — Amy J

John Mazzara was so kind & patient with our house hunting &

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he was always readily available to look at a house with us. We found our home with John's help & couldn't be happier with his services. — Brittany R. We've known and trusted John for over twenty years. He has been our "go-to-guy" for buying, selling and expert advice for countless events. John is very accessible and has always eased any concerns during the buying/selling process. Steve & Vicki M John was very helpful, knowledgeable, and professional. You will be delighted to have him as your agent. — Yohannas A. We have worked with John for many years. He is honest, extremely helpful, and very easy to work with. We have recommended him to several friends over the years who have also had him help find their homes. Call John to help you find your new home - you won't be sorry! — Jen Z Chaska MN — Vicki M John recently helped me sell my mother's townhouse. From listing to closing, he was great to work with. I was a first-time seller and he patiently walked me through the whole process. Everything went very smoothly. I would highly recommend him. — Julie D. John is an expert in the field and we consistently have great results working with him! — Mark V I would recommend John to anyone looking to buy or sell. His knowledge and hospitality is beyond measure. I'm looking

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forward to working with him and Re/max in the future. — Lyda O

John was very helpful and looked out for you as if he was buying the house. He went the extra mile even when it wasn't necessary. I will use John again for our next home! — Thomas H John is OUTSTANDING, his knowledge and depth of experience in real estate and helping people make the right choice is totally unmatched! His incredibly vast knowledge of anything real estate, from rules, banking, loans, purchase agreements, financing, market trends, and prices which provides a huge advantage to any buyer or seller. John also saves a lot of time do to his knowledge and willingness to help. You don't have to run around asking others questions, as John can provide a correct answer to your questions without delay or left wondering. Simply the best there is and extremely valuable to anyone making such a huge decision as buying or selling a home! — Brian D John Mazzara was a pleasure to work with during my first home buying experience. I appreciated the time that John took to explain the home buying process, as well as his flexibility in maneuvering around my sometimes hectic working schedule. John is very knowledgeable about the market in the Twin Cities area, and I am thankful to have had his expertise on my side. — Ben C John helped our family to buy 2 townhomes which are the right choices for us. We can count on his real estate knowledge & advice. Our home purchase process was really smooth without any issue. We would strongly recommend him to our family & friends for home purchase. — Shantha R

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John is great to work with. He's helped us buy 2 of our homes. He is very knowledgeable, objective and thorough professional. Our second home search took us over a year, and John was very patient throughout the process with us. He went out of his way to help us rent our townhouse and manage the rental/transition process. We feel very lucky to have found him to work with, and appreciate his guidance. — Nitika M John & Patti, Thank you so much for your help in purchasing and managing an investment property. John, your commitment to education really made this possible-your professionalism really shines while patiently answering questions. — Chris T Hi John, I just wanted to take a minute to say "Thank You" for handling my entire real estate sale in such a professional manner. I really enjoyed working with you, and I definitely felt like you were representing my best interests throughout the entire transaction. You will definitely be the person I call for future real estate transactions, and I will continue to refer my friends to you! — Barb H John, Thank you for being there every step in buying our first home. We're so appreciative for all of your guidance. We are looking forward to working with you in the future. — Beth and Josh Dear John, We recently purchased our first home with your help. Being first-time home buyers, we were not sure where to begin. But with the help of you and Patti/Venture Development we were well on our way with little effort on our part. When it came time to hitting the pavement and looking at possible houses we really appreciated you giving us your thoughts on the

prospective houses; not something that many Realtors do. You were more than willing to take a phone call at 11 pm at night to schedule a walk-through the next day, again something most Realtors don't do. Once we found "the one" and were ready to write an offer and play-back and forth game of negotiations your company made it painless. The tactfulness and professionalism of how you conduct business really shows how much you care about each client and want them to get the best deal for their money. My wife and I are very pleased with the end result. John and Patti make a great team. When people hear about the nightmare of buying a short sale, Patti & Co take the guesswork out of everything. John, the commitment and never-ending guidance and support speak volumes to your dedication and true passion for your profession. Then you helped us through the never-ending bumps in the road made our purchase one of the best experiences of our lives. We will be repeat customers with John & Patti in the future. — Guy & Nicole I have many more testimonials. If you would like to see the originals or any of my others please call me to set up an appointment. I would love to count you as a satisfied long-term client and friend! I like what I do and I genuinely want to help you make the best real estate decision possible.

— Please call me to set up a time to meet! 612-386-7027

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About John Mazzara

Let me introduce myself. My name is John Mazzara. I have worked in real estate since 1986. I have a very extensive financial background. I began my career selling real estate and expanded my services to include mortgage services. I previously owned a mortgage brokerage where we arranged mortgage financing. I have also owned and managed rental real estate for myself and others. I've even written a book about it called "Reality- Based Real Estate Investing" which is available at Amazon.com or can be viewed online. Give me a call and I'll send you a PDF copy. I am a Realtor licensed to sell real estate in Minnesota and Wisconsin. So, How can I help YOU? It all comes down to this-knowledge, experience, and trust. When you select someone to help you, make SURE they have all three. You are about to make one of the biggest purchases of your life. Don't take the selection of an agent lightly. My background and experience as a trusted Realtor have helped hundreds of families throughout the Twin Cities make the right decision. I sincerely hope you will take a moment to meet and interview me to see if we are a match. I promise to do my best in making the home buying and/or home selling process as painless and fun as possible. I have a strong commitment to those who serve. I have completed the MRP-Military Relocation Professional designation. Let me assist you with your move to-from-or within Minnesota. If you are considering a move and want to work with an agent who has a commitment to relocation in general, I have the CRP (Certified Relocation Professional) designation from Worldwide

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ERC. I understand your stress and apprehension. As a lifelong Minnesota resident, let me answer your concerns and help you find the RIGHT property and neighborhood for yourself/and your family! Demonstrating my continued commitment to providing value to real estate investors, especially in light of all the distressed real estate and opportunities that they present within the marketplace today, I have completed the CIAS (Certified Investor Agent Specialist) designation. This program and its training provide additional information and resources that augment the real estate investment classes and real estate investment book that I have written and created. With my CIAS affiliation, I have access to a number of different investment analysis calculators and worksheets as well as supplemental information that my clients can utilize to determine if a particular property is right for them in helping them reach their investment goals. While real estate investing is not without risk, and there are no guarantees it will be profitable, it may be something to consider once you have researched the topic thoroughly. In an ongoing commitment to conservation, I have completed NAR’s Green Designation. I am a NAR Green Designee who has completed training from the National Association of REALTORS® (NAR) to help home buyers and sellers make educated decisions about green materials and upgrades, energy- efficient technology, green ratings, green design, green incentives, and more. NAR Green Designees have a broad knowledge regarding green topics and can have a positive effect on their community. Have you ever considered building a new home as an option? This can be done with a smaller local builder or a national builder. I have represented clients in BOTH situations. It doesn’t cost you anything more to have me represent you in this situation and I can bring you added value in the process. New construction

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IS an option for your next home! I have personally purchased new construction from the concept to the completed home, moved a house onto a lot where I was the general contractor, and have completed my own 18month 1500 sqft major remodel where the entire home was rebuilt from the studs, all mechanicals were redesigned and replaced as well as a complete redesign of the existing floor plan complete with custom-built features. Let my experience AND additional national training and certifications of RCC (Residential Construction Certified) and CHNS (Certified New Home Specialist) help guide you in this process. Being a baby boomer myself, I am sensitive to the needs of an older population contemplating making a downsizing move. In my 35 plus years and over 1000 homes sold, I have the skills, patience, and desire to help make a move as easy as possible. I have completed the SRES designation from NAR as a Seniors Real Estate Specialists. I have assembled a number of other professional partners who can assist you with your move. I teach classes on these topics- “Downsizing Made Easy” and “Moving Mom and Dad”. Both classes have wonderful resource booklets that I will be happy to share. If you or a parent are contemplating making a move, I would love to help. I sincerely hope you will take a moment to meet and interview me to see if we are a match. I promise to do my best in making the home buying and/or home selling process as painless and fun as possible.

Sincerely,

John Mazzara CFP WMCP RICP CLU CHFC CEBS CMB MBA MS AIF

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612-386-7027 john@johnmazzara.com http://www.MinneapolisStPaulHomes.com

CHAPTER 1 Home is Where the Heart is e the Heart is Picture your life in 3, 5, even 10 years from now. What does it look like? Do you look upon the future with trepidation? Or are you excited to make the most of your post-retirement years? If you identify with the latter, I want you to know you’re not alone. When we’ve spent the better part of our lives raising families, establishing careers, and building meaningful relationships, imagining such a drastically different life and lifestyle can seem impossible — and even scary. But I’m here to tell you that while the future may be drastically different, it can also be equally wonderful.

Now, I want you to think specifically about your home.

In 10 years, are you still living in the same house? Is it still the perfect home you once thought it to be? Is that house still meeting your needs? Are you spending too much time trying to keep up with all the space you have (but likely don’t need or use)? And while you may not want to consider this possibility, are you finding it more difficult to maintain your home due to age, a lack of time and interest, health issues, etc.? Now, picture your neighborhood and surrounding community. Have they changed considerably? Have most of your neighbors and friends moved away? Are younger couples and families 2

moving in, leaving you feeling like you no longer “belong?” Has the overall sense of community changed? Is your home no longer meeting your needs? Many homeowners who are empty nesters — nearing retirement and entering their senior years — need to consider their current and future living situations. However, many enter this process with apprehension, instead of picturing the possibilities! You could be living your best years yet in a new home, in a living situation that suits your new needs and lifestyle. You’ve heard the saying, “Home is where the heart is.” Many homeowners who have lived in their family homes for a long time — sometimes decades — take this to mean that their house is where the heart is. Homeowners don’t want to think about letting go of their longtime family homes because of all the memories they hold. However, I’d like to amend that age-old expression to “Home is where you are.” Wherever you live will become your home, even if it’s hard to let go of the space you currently call home. Moving toward retirement and your senior years is not what it used to be. Nowadays, more and more people are looking forward to this stage of life. It doesn’t have to be a scary or overwhelming time, or one that gives you a sense of dread that your best years have passed you by. With this book, I hope to show you that you’re simply entering a different stage of life, and it can be a very rewarding and exciting one. In fact, your post-retirement years could just be your very best yet. They don’t call them the “golden years” for nothing. There is plenty to look forward to as you enter this next phase of your life, and where you plan to live is one exciting element to consider. Think about the future and all its possibilities.

What if I told you that you could live out your golden years with more money, more time, more freedom, more peace and security and less stress? Imagine making a profit from the sale of your house and having increased cash flow in your future. Imagine saving money on bills and gas. Imagine naturally becoming more organized and reducing your consumption of “stuff.” Imagine better accessibility. Imagine putting less pressure on your adult children as you age. Imagine enjoying more free time and less stress! You would say “Sign me up!” right? These benefits could all be yours in the future as you think about changing your living situation. Even if you can’t picture exactly where you’ll live in the next 10 or 20 years (or what type of home you’ll move into), that’s OK! The options are endless when you move toward empty nesting and retirement.

This book is for you if you:

• Are just starting to think about moving to a new home. • Are considering moving but aren’t sure about the best way to go about it. • Are taking the first steps toward saying goodbye to your home and preparing to say hello to a new one and a new, exciting future. • Have questions or doubts about moving. • Feel overwhelmed about the process, especially if you’ve accumulated a lot of “stuff” over the years and need to do a major decluttering overhaul. • Aren’t sure about the benefits of moving. • Don’t know which repairs or updates to make before selling.

It isn’t easy to say goodbye to your longtime home, and there are certainly valid reasons for hesitation. But that’s not to say you can’t start fresh, making new memories and enjoying a new lifestyle in a new home, all while taking advantage of the many benefits of living in a more manageable, and lower-maintenance space.

Remember, home is where the heart is, not the house.

In this book, we’ll talk about the following:

• Why you should consider moving to a home more suited to your future needs • The options for your next home • The necessary steps to take for a successful home sale • A detailed guide for a successful home-shopping and home-buying experience • Why you should rely on an agent to help you through the process As an experienced real estate agent, I understand the intricacies of selling and buying homes, and I want to help you see why moving might be the right choice for you — plus help you navigate this journey as smoothly as possible so you have less stress and more time to enjoy your life. In the first part of this book, we’ll talk in much more detail about the different types of homes you can consider and the best type of dwelling to suit your needs (and what might influence your decision). Then, we’ll discuss the selling and buying processes, including how things may have changed since the last time you sold or 5

bought a home.

If you’re not sure whether you should consider moving — and potentially downsizing — the final part of this book will address some hesitations you may be having and also point out some of the benefits of moving to a home better suited to your future wants and needs. Let this book serve as your guide to navigating this important, yet exciting time in your life as you think about where you will ultimately live your best years in comfort and style.

CHAPTER 2 What Are You Looking ou Looking for in Your Next Home? xt Home?

We just talked about how much you have to look forward to as you move into the next season of life. But before you even consider selling your longtime home, you need to consider your next home and the life you want to live in it.

So, what are you looking for in your next home?

Many empty-nesters find themselves with an excessive amount of living space they no longer need. That’s why many choose to downsize when they’re searching for their next homes. In many cases, your new home post-retirement will have less square footage than the home you currently own, but it may also just be a different type of home — for example, a 1-story home opposed to a 2-story home, perhaps with similar square footage; or a home of equal size with less bedrooms and more space dedicated to other areas of the home. This is called “rightsizing.” Rightsizing is all about finding a more manageable home than the one you currently own. Before we get into the details of the different types of housing options, let’s talk about some of the benefits of downsizing or rightsizing, including some surprising or even unexpected benefits of selling your current home and moving into another one. For the purposes of this chapter, we’re going to focus specifically 8

on the benefits of downsizing, though many of these same benefits apply to a “right-size” property.

10 BENEFITS OF DOWNSIZING

1. Profit

Simply put, you could make a profit by selling your current home and moving into a smaller home — bonus points if you’ve already paid off your mortgage because you might just be able to purchase your next home outright. You might even stand to make a sizable profit (this is all dependent on your individual market and how much your current home is worth) and feather your nest egg. If you’ve been delaying retirement because you don’t think you can afford it, selling your larger home and moving into a smaller one could allow you to finally retire in peace and comfort.

2. Lower Bills

Downsizing also presents another money-saving opportunity: lower (often significantly lower) energy or utility bills! Who doesn’t want to save on bills? Choosing to live in a smaller dwelling space can reduce housing costs. Think about it: It costs significantly less to heat and cool a smaller home. Smaller homes also typically have less wasted space. Less square footage decreases the amount of overall energy expended. Something else you might not have considered are the potential tax benefits and savings that you could be eligible for, if you’re over a certain age. This will, of course, depend on not only your age but also your location, as there are different rules and requirements and benefits in each state. Before you sell your

home, ask your real estate agent to help you do some research about the different tax-saving options available to you in your state. And don’t forget about the impact on the environment. Moving into a smaller home reduces energy, which is better for the environment and helps to keep your home “green,” reducing your carbon footprint.

3. Reduced Consumption

It’s a fact: The more space you have, the more likely you will feel the need to fill that space with something. If you’re an empty nester, it may be tempting to fill the extra space in your big house with stuff, even though you likely have more than enough of it. One of the great perks of downsizing is that it automatically reduces your consumption of “stuff ” because you first have to declutter before you sell and move. You will have less space to store your possessions — whether old or new — in your next (smaller) home. Downsizing can help you focus on your priorities in life so that you bring only what is truly necessary into your home or what you treasure most. The fact is, if there’s no place to put something, then you’re less likely to buy it. You won’t want all that decluttering to go to waste, so you’ll naturally buy less of everything — food, clothing, consumer goods, household décor, furniture, etc. You will focus more on what you need rather than what might be “nice to have” and avoid impulse spending.

4. Organization

Downsizing forces you to become organized. Decluttering might

seem like a disadvantage to downsizing. After all, it’s time- consuming, exhausting, and sometimes even heartbreaking to go through all the stuff you’ve accumulated throughout the years and get rid of much of it. But the short-term hassle is worth it. You’ll be forced to eliminate all that clutter and end up with only what you need and your most valuable items. This will free up space in your home and in your mind.

5. Accessibility

For many individuals entering retirement — especially those with health or mobility issues — accessibility within a home becomes increasingly important. Stairs are one example. As much as we all might not like to admit it, as we age, mobility can become more of an issue. Stairs are often barriers that prevent people from enjoying the full use of their homes. Stairs can also significantly increase the risk of falls and subsequent injuries. Your longtime home might have served you well over the last few decades, but it could become more challenging and riskier as you age. Mobility issues present an even greater challenge. However, downsizing from a two- or three-level home into a smaller, one-level house, condo, or apartment can give you greater accessibility, allowing you to live in your new home for longer instead of needing to switch to an assisted-living facility before you need one.

6. Less Driving

One unexpected benefit of downsizing is that you will probably drive less.

If you’ve lived in a larger home in the suburbs for years, you’ve likely become used to driving to most places, including work, shopping, entertainment, visiting, etc. Many people who live in suburban communities feel isolated in retirement. Proximity and accessibility aren’t the only concerns. Many aging homeowners wish to reduce the amount of driving they do due to one (or all) of the following reasons: • Health concerns (often related to eyesight challenges or mobility issues, or both); • Cost (you can save money related to gas and ongoing maintenance); • Environmental concerns (Many Boomers are becoming more concerned about their carbon footprint and the state of the environment they’re leaving for their children and grandchildren.)

7. Less Work for Your Adult Children

Deciding to downsize can mean reducing, or even eliminating, a lot of work for your grown children — something that many empty nesters find to be important. Adult children are often left with the arduous, time-consuming, and often unnecessary task of sorting through, giving away, selling, and storing the possessions of their parents after the parents become ill, are immobilized, move into assisted-living facilities, or pass away. Is this something you want your own children to deal with? While paring down your possessions is definitely better for you as you go through the process of downsizing — for decluttering, organization, making the most of your new space, and even 12

mental health — it’s also considered a gift to your adult children because they won’t have to sort through all of your stuff down the road. Too often, aging parents hang on to sentimental possessions in the hope — or assumption — that their children or grandchildren will desire them some day. However, the truth is that many children don’t even want these items their parents have “saved” for them. Before you save anything for your children or other family members, ask them if it’s something they might want in the future. I know someone who saved his extensive record collection, retaining them through several moves, only to find his nephew, whom he had been saving them for, didn’t want them. He eventually sold them to someone who treasured them as much as he did, and he made a healthy profit in return. When you do go through these more personal items, make sure to approach the process fairly to avoid any conflicts or confrontations about who gets what. Downsizing can prevent all this hassle, as you’ll be forced to declutter and become more organized.

8. More Time

Besides the money-saving opportunities, one of the biggest benefits of downsizing is more time. If you sell your current home and move into a smaller space, that means there is less square footage, fewer rooms, and less stuff. This, in turn, means there are fewer household tasks, less to clean, less to maintain, less to organize, and less to worry about!

This, in turn, means there are more hours every day to do something else — whether it’s a leisurely walk, exercise, volunteering, a neglected activity or hobby, time with family or friends, travel, or even just resting with a good book. By downsizing, you’ve now claimed more time for yourself and your priorities in your golden years.

9. Less Stress

Who doesn’t want less stress? This is a major motivating factor for many areas of life. Homeowners who have gone through the process of downsizing are generally much happier in their new home, and their new lifestyle, as they’re no longer overwhelmed by the demands that owning and maintaining a larger home often brings. The increased cashflow, along with less responsibility and more flexibility will, when added together, reduce stress considerably. Paring down your possessions (decluttering) as you downsize helps you to truly appreciate your new home and increase your enjoyment of it, which helps to reduce stress. It’s been proven that too much clutter increases stress because it’s just not conducive to a comfortable living situation. There’s just too much stuff, which can get in the way, and you’ll have a hard time finding things. By having less stuff and becoming more organized, you will simplify your life while enjoying reduced stress levels.

10. More Peace and Security

A major benefit of downsizing is the peace and security that comes with making that big decision and having successfully downsized from your current home into a smaller dwelling.

You will have peace of mind that you downsized before it was too

late — that you didn’t wait too long to organize yourself and your home, declutter, and get rid of possessions you no longer need. You won’t have to worry about doing this in the future when you’re older and/or in poor health, and having to leave all the work for your grown children. Downsizing also brings security. You’ll have financial security in the sense that you were hopefully able to make a profit and enjoy increased cashflow to help you throughout your retirement. The security also comes in knowing that you’ve successfully sold your home and you’re going to be OK as you age, whether you’ve downsized into a smaller house, condo, apartment, or community living. And, as I’ve already pointed out, you will have more time and less stress.

WHAT ARE MY OPTIONS?

There are plenty of options when you’re looking to downsize and live a simpler, more carefree and stress-free lifestyle, and you need to consider these options carefully. There is no one-size-fits-all approach to deciding where you should move after selling your house. The decision will depend on a variety of factors, including your budget, your family situation, your lifestyle, and your needs and wants. Some living situations suit a certain type of homeowner more than others. So, read through these next few chapters of the book so you can make the decision that’s right for you. When downsizing, there are generally three options to consider (and different variations of each):

• Smaller single-family house or townhouse

• Condo or apartment • Community living

To help you become clear on which option is right for you, ask yourself the following five questions, and keep them in mind as you read through the next three chapters. 1. What is your main motivation for moving? (You will likely have more than one, but focus on your primary reason.)

• To be closer to family? • To be free of homeownership burdens?

• To be closer to a city or town so you can walk to basic amenities, as well as social activities, and not have to worry about driving? • To stay in the same area but in a smaller, more manageable home? • To move to a location with more favorable weather conditions (for example, moving from a snow-prone area to a warmer location) • To make new friends around your age who share similar interests and life experiences? • Flexibility, so you can visit family or travel or relocate easily without worrying about maintaining a large home? 2. Do you want to find your “forever” home, or just a home for the next few years?

3. How much independence do you want and need?

4. What specific features are you looking for in a new home?

• One-story living, free of stairs?

• A particular number of bedrooms (i.e., the ability for family and other guests to visit and stay with you)? • A low-maintenance yard (or no yard)? • A garage?

5. What sort of lifestyle do you hope or expect to lead?

• To continue to live similarly to how you’re spending your time now? • To have access to a wide variety of extracurricular activities and hobbies? • To have someone to take care of certain needs for you?

Key Takeaway:

Once you’ve decided to sell your home, the next big question is, where should you move? The options are essentially 1) a smaller single-family house or townhouse; 2) a condo or apartment; or 3) community living. The right choice for you will be based on a variety of factors, including your motivation for moving, whether you expect this to be your final home, your desired level of independence, the features you’re looking for, and the type of lifestyle you want to enjoy.

CHAPTER 3 Single-Family House or Townhouse This chapter will focus on the option of moving into a single- family house or a townhouse. I’m going to discuss five benefits of choosing this type of living situation: 1) independence; 2) personalized space; 3) homeownership pride; 4) space for company; and 5) utility savings.

1. You can maintain your independence.

Many longtime homeowners who are considering a move don’t want to sacrifice the independence of owning, maintaining, and living in their homes. This is especially true for new empty nesters or those nearing retirement. If you’re not ready to give up the independence of living in your own home, then a different single-family home or a townhome might be the right choice for you. In many cases, this home will have less square footage than the home you currently own, but as I pointed out in the previous chapter, it may also just be a different type of home — for example, a 1-story home as opposed to a 2-story home, even if it has similar square footage. But for the sake of this chapter, we’re going to assume the home is a smaller size.

2. You can create your own personalized space.

If you choose another house or townhouse for your new home, 18

rather than a condo, apartment, or community living space, think of this as your chance for a fresh start in a new home! You can create your own personalized space — a space that’s truly your own — and design your home however you like (without having to consider the needs of children). If you love creating, designing, and stylizing your own space, this could be a great option for you. And the added benefit is that you’ll have less stuff, since you’ll already have decluttered by this stage in the downsizing process, so it won’t take as much time, energy, and funds to design your entire home.

3. You can take pride in homeownership.

There is definitely a sense of pride that many people feel in homeownership. If you loved owning your own home and aren’t quite ready to give that up, then another single-family home or a townhome could be the perfect option for you. You can still be an independent homeowner, but enjoy things like less maintenance and upkeep, which will save you time, freeing it up for things like leisure activities, family, and travel.

4. You can still have enough room for guests.

Some homeowners worry about downsizing because they assume they will no longer have enough space to host children, grandchildren, other family members, and out-of-town guests for the night (or longer). However, if you downsize into a smaller house or even a townhouse (instead of an apartment, for example) that has an extra bedroom or two, you can still have that bit of extra space to host overnighters when you need it. Choosing a smaller house or townhouse over an apartment can help ensure you have that space.

5. You can save on utilities.

As I mentioned in the previous chapter, if you downsize your home, you can also save money on some of your bills! If you choose a smaller single-family home or townhome, you can save a significant amount on utilities, such as electricity and gas. Smaller houses are often considerably more energy-efficient than older, larger homes because they have less space to heat and cool, which means more savings for you, as well as a lower ecological footprint. Likewise, single-story homes can be easier (and less expensive) to heat and cool than 2-story homes, even if they share a similar square footage.

House vs. Townhouse

There are certainly differences between choosing to downsize to a single-family home vs. a townhome or carriage home. There are benefits to living in a townhouse compared to a smaller detached house. For example, some homeowners who are downsizing prefer complete privacy and independence, and aren’t ready to give that up just yet — but also aren’t ready for community living. Compared to a townhouse, a smaller single-family house has more privacy and provides greater independence. Though likely smaller than your current home, a single-family home may offer a beautifully landscaped backyard with a garden, a fenced-in yard, a garage, and the freedom to be able to do what you want with the home, including repainting the exterior and adding some outdoor home improvements. These options aren’t necessarily available with townhouse living, as there may be standards and bylaws preventing you from making the changes you want.

Of course, there are benefits to living in a townhouse compared to a smaller single-family house: • Price: In general, townhomes and carriage homes are less expensive than single-family houses. But they still offer much of the space and flexibility you’re probably looking for. But keep in mind that most townhomes also include monthly HOA fees to cover things like landscaping, plus any other amenities in the community. • Flexibility: Besides the price factor, townhome living tends to give you more flexibility. It has the added benefit of the low-maintenance lifestyle that comes with condo or apartment living, but generally includes more space, as well as more flexible options when it comes to function (such as parking spaces) and leisure (backyards for private or semi-private entertaining). • Practicality: Sometimes, it’s the more practical option. For example, a downtown three-bedroom townhouse might actually be a better investment option than the little two-bedroom house down the street. • Community: Townhouse living can also offer a similar sense of community to an apartment, but generally with more privacy and fewer neighbors. However, many homeowners would prefer to move into a condo or apartment, and there are many solid reasons for that, which we’ll take a look at in the following chapter.

Key Takeaway:

Thinking about where you would like to live when downsizing is a big decision, as there are many options to consider. We’ve looked at the benefits of choosing a smaller single-family home 21

or a townhome, which can offer things like independence, privacy, pride in homeownership, space for family, and savings on utility bills.

CHAPTER 4 Condo or Apartment Living

Maybe you aren’t interested in purchasing another house, whether it’s a small detached house or a townhouse, then dealing with many of the responsibilities that come with that. But maybe you aren’t yet ready to jump into community living either. Consider purchasing or renting a condominium or apartment instead. Condos and apartments are popular choices for homeowners looking to downsize who aren’t interested in owning a house or moving into senior housing. These types of dwellings are often the perfect size for many downsizers. Finding the right type of condo or apartment in the right neighborhood that meets your needs, with the right amount of space, can actually improve your quality of life. Here are some of the advantages of condo and apartment living:

1. You’ll have less upkeep and maintenance.

Less overall upkeep is a major benefit — and one of the most attractive — for many homeowners when downsizing from a larger house to a condo or apartment. First, there are fewer indoor chores to manage since you have less space and fewer rooms to clean and maintain regularly, including tidying, dusting, sweeping, wiping down, and scrubbing. Second, most condos and apartments include homeowners association (HOA) fees that cover maintenance of the grounds and community amenities. You won’t need to worry about 24

mowing your grass, weeding your garden, shoveling snow off walkways, and other landscaping issues. Third, if you rent, whether it’s a condo or an apartment, you won’t need to worry about common maintenance issues. Property owners are responsible for taking care of their tenants, so most of them will pay to fix leaky sinks, handle plumbing issues, replace broken appliances, and repair a malfunctioning furnace or air conditioning system, among other issues.

2. These homes offer increased accessibility.

Condo or apartment living, particularly if you’re centrally located, can offer more accessible living, as you’ll be closer to amenities and services (groceries, doctor’s offices), as well as entertainment and social activities (dining, concerts). It will be easier to walk to these places, or, if it’s something you enjoy, cycle. There’s also better access to public transportation so you don’t have to worry about driving as much.

3. You’ll have even lower monthly utility bills.

A second and important benefit of downsizing into a condo or apartment is that you’ll be able to save even more on utilities and reduce your monthly bills — more than by purchasing a smaller house or townhouse. Most condos and apartments take up less square footage than a single-family home or townhome, and considerably more than the larger family home you’re leaving behind, so you’ll pay much less to heat and cool your space, especially if you can find a good deal. “You’ll use less electricity, heat and water in an apartment, and some monthly bills may be eliminated altogether,” reports Nationwide Mutual Insurance Company. “For instance, the monthly cost to rent a water softener to manage hard water is unlikely inside an apartment. Some of your utility costs may be

included in your rent, too, such as your waste management or water bill.” Besides saving money, you’ll also be making a good choice in sustainability, both environmentally and financially. For example, many modern condo and apartment buildings are being built with an eco-friendly, more energy-efficient, and “greener” approach.

4. You can meet new people.

While some homeowners in the process of downsizing prefer to move into a small house so they can maintain their independence, enjoy privacy, and reduce the possibility of dealing with annoying neighbors, other downsizers hope to meet new people, get to know their new neighbors, socialize, and make connections. If this is you, condo or apartment living would make a fantastic choice — especially if you’re looking for a sense of community without moving into senior housing or an official retirement community. Living in close proximity to your neighbors means there is ample opportunity to meet new people — and even try new activities. You can easily walk down the hall to drop by and say hello, catch up over a cup of tea, ask for an ingredient you’re missing for dinner, play a game of cards, go out for a nice stroll, or take up a new leisurely activity together. Nearby neighbors are also handy for things like feeding your cat or watering your plants when you’re away, or keeping on hand a set of spare keys. These are all much easier and more convenient to do in a condo or apartment than if you lived in a house.

5. You can take advantage of amenities.

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