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Downsizing Your Home After 50: 3 Smart Moves

Compare the true cost of staying versus moving, sort your belongings before you list, and understand the home sale tax exclusion. Three smart moves to make downsizing easier and more profitable. This is general information, not financial advice.

What you'll learn

  1. Count all costs. One. Add up the true cost of staying versus moving. Property taxes, insurance, repairs, and yard work add up on a big house. Then compare that to a smaller home or rental. Sometimes the smaller place costs more per square foot, so run the real numbers.
  2. Sort before you pack. Two. Sort your belongings before you list the house, not the week you move. Go room by room, keep what you use, and give family heirlooms early. Selling furniture and clutter ahead of time means a cheaper, easier move and fewer rushed decisions.
  3. Mind the tax. Three. Understand the home sale tax rule. A single seller can exclude up to two hundred fifty thousand dollars of profit, and a married couple up to five hundred thousand, if it was your main home for two of the last five years. Talk to a tax professional before you sell.

Full transcript

1. Add up the true cost of staying versus moving. Property taxes, insurance, repairs, and yard work add up on a big house. Then compare that to a smaller home or rental. Sometimes the smaller place costs more per square foot, so run the real numbers. 2. Sort your belongings before you list the house, not the week you move. Go room by room, keep what you use, and give family heirlooms early. Selling furniture and clutter ahead of time means a cheaper, easier move, and fewer rush decisions. 3. Understand the home sale tax rule. A single seller can exclude up to $250 ,000 of profit, and a married couple up to $500 ,000 if it was your main home for two of the last five years. Talk to a tax professional before you sell.

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