If you’re over 60, own a home, and are starting to think about making a move—whether to a smaller home nearby or to a more affordable city or state—you’re not alone. Thousands of long-time homeowners just like you are weighing the pros and cons of downsizing. Whether driven by changing lifestyle needs, a desire to free up equity, or just wanting less home to maintain, the decision is deeply personal—but it doesn’t have to be overwhelming.

In this guide, we’ll walk you through everything you need to know to make downsizing easy, fast, and profitable. We’ll cover short-term tactics to help you move quickly, long-term strategies to maximize your tax benefits, and real-world insights from helping hundreds of older adults through this transition.

Why Downsizing Makes Sense for Many Older Adults

Let’s start with the big picture: your home is likely your biggest financial asset. And chances are, it has appreciated significantly over the past 20 or 30 years. But while that equity looks great on paper, it’s not helping you unless you do something with it.

Here are just a few reasons people downsize in their 60s and beyond:

• Too much space: Kids are gone. You’re not using the extra bedrooms.
• Maintenance headaches: Big yards, leaking roofs, and constant repairs become a burden.
• Financial freedom: Selling now could free up hundreds of thousands in equity.
• Lifestyle shift: You want walkability, simplicity, or proximity to grandkids.
• Future planning: Better to move on your own terms now, while you’re healthy and active.

Two Paths: Fast Exit or Strategic Exit

Depending on your timeline and goals, you have two main approaches:

1. The Fast Exit: Get It Sold and Move Within 90 Days

Ideal for those ready to go now, this route minimizes friction and helps you cash out quickly.

Key steps:

• Step 1: Get a market valuation – Know what your home is worth today.
• Step 2: Focus on high-ROI improvements – Declutter, deep clean, stage. Don’t remodel.
• Step 3: Consider selling as-is – Many buyers today prefer a blank canvas. You can save tens of thousands by avoiding repairs that won’t pay off.
• Step 4: Choose your next destination – Secure short-term housing if needed.
• Step 5: Work with an agent who specializes in downsizing – You need someone who understands how to coordinate a sale and purchase simultaneously or sequentially.

2. The Strategic Exit: Maximize Returns Over 6–24 Months

If you have more flexibility, this approach gives you more time to plan and potentially save big on taxes and moving costs.

Key strategies:

• Use a home equity consultation – Understand how much equity you have and what’s possible.
• Explore Prop 19 – This California law may allow you to transfer your low property tax basis to a new home, even outside your current county.
• Sell rental properties first – If you have investment properties, selling them ahead of your primary home may allow for better tax outcomes.
• Evaluate a 1031 exchange – For rental property owners, this allows you to defer capital gains taxes.
• Stage your financial picture – Work with a financial planner and real estate agent to sequence your sales and purchases.

Where to Move: Stay Local vs. Move Beyond

Staying in the area? Consider:

• Smaller homes in the same town
• Condos in walkable areas
• Explore 55+ communities like The Villages in San Jose

Moving elsewhere in the State?

• Santa Cruz, Monterey, and San Luis Obispo offer beauty and a slower pace.
• Sacramento and the Gold Country offer lower home prices and tax advantages.
• Palm Springs and the Coachella Valley provide sunshine and retirement amenities.

Leaving the state?

• Oregon and Washington: Lush landscapes and no sales tax.
• Nevada: No state income tax and proximity to California.
• Arizona: Dry climate and retirement-focused communities.
• Texas or Florida: Affordable housing, no state income tax.

Your destination should match your lifestyle, budget, health care needs, and access to family and community.

Making It Easy: The System That Works

Here’s how to simplify the downsizing process:

✅ Step 1: The Free Home Equity Consultation

This is more than a price estimate—it’s a full roadmap that includes:

• Net proceeds estimate after closing costs and taxes
• Timing and market trend guidance
• Personalized strategies to either move fast or optimize value

✅ Step 2: Decluttering Without the Drama

Start with the low-hanging fruit: old clothes, paperwork, unused furniture.

Then hire a local service that helps with sorting, donating, selling, or hauling. This is where many people get stuck—don’t do it alone.

✅ Step 3: Staging for Maximum Return

You don’t need to renovate—just make it shine. We’ll help coordinate:

• Paint touch-ups
• Landscaping clean-up
• Full or partial staging
• High-quality photography and video

✅ Step 4: Coordinating the Sale and the Purchase

You may be able to buy your next home before you sell using:

• Bridge loans
• Home equity lines of credit (HELOCs)
• Compass Concierge or similar programs to front light fix-up costs

Alternatively, you can sell first and then:

• Rent back your home for 30–60 days
• Move into temporary housing while you shop with cash in hand

✅ Step 5: The Right Team

You’ll need more than just a REALTOR®. Look for:

• Certified Senior Advisor
• Senior Real Estate Specialist (SRES)
• Tax and financial professionals
• Moving coordinator or downsizing specialist
• Trusted out-of-area agent in your destination city

What About Taxes?

Downsizing can come with major tax consequences—but smart planning can help you avoid surprises.

• Capital gains exclusion: Married couples can exclude up to $500,000 of gain on their primary residence. Singles can exclude $250,000.
• Rental property depreciation recapture: Selling a rental can trigger taxes unless you 1031 exchange.
• Proposition 19: If you’re over 55, disabled, or wildfire/disaster affected, you may be able to transfer your property tax base to a new home—anywhere in California and up to 3 times.

Always consult a CPA or estate planner before making final decisions.

How Much Will I Really Walk Away With?

Let’s say your home is worth $2.1 million. You owe $300,000 on the mortgage. You do some light prep work and stage it. You sell for $2.2 million. After commissions, fees, and taxes, you walk away with:

Over $1.6 million in cash.

That’s money you can use to buy a new home outright—and potentially still invest or save for the future.

When Is the Best Time to Downsize?

The best time? When you’re ready. But from a market perspective:

• Spring and early summer are ideal for selling.
• Fall and winter can be better for buying in your destination market.
• Planning ahead gives you the power to move when conditions are right.

Final Thoughts: Make the Next Chapter Your Best Chapter

Downsizing doesn’t mean downgrading. It means freeing yourself from the stuff—and space—you no longer need, and opening the door to new possibilities.

You’ve built a life in your community. If it’s time to take the next step, let’s make sure it’s one that’s profitable, peaceful, and aligned with your future goals.

Schedule your free Home Equity Consultation today.

Let’s make a plan that works for you—whether that means moving next month or next year.