Downsizing in retirement? In addition to deciding where to go, most retirees also need to sell an existing home – perhaps one they have lived in for decades. Here are tips for selling your home.
Know what your home is worth.
Homeowners can get a basic understanding of what their home is worth by tooling around on Zillow, Realtor.com, and other online sites that have estimator tools. But it’s also wise to consult with at least two or three local real estate agents.
Negotiate the commission rate.
Real estate commissions have always been negotiable, but sellers rarely had much opportunity to haggle with an agent. That’s changing. In 2023, The National Association of Realtors and several major brokerages were hit with a $1.78 billion jury verdict in a class-action antitrust case alleging that industry practices kept commissions artificially high. In March 2024, the association agreed to a nationwide settlement of about $418 million to resolve claims. Under the settlement, Realtors can no longer require sellers to offer payment to buyers’ agents through MLS listings, ending the standard practice of sellers covering those commissions. The new rules took effect in August 2024.
Understand the housing market.
Demand for properties is high, inventory is tight, and prices remain elevated. Mortgage rates are down from their October 2023 peak, but they’re still relatively high and volatile. These factors – along with lower mortgage rates on current homes – are putting a squeeze on Baby Boomers’ desire to move to something smaller, cheaper, or easier to manage. In 2024, Federal Reserve Chairman Jerome Powell said he believes the U.S. housing market is undersupplied and will remain so for years, a statement that remains valid. This could concern downsizers who are hoping to trade what they have for something better, only to find market conditions discouraging.
“With the current situation of the real estate market, the downsized property may be significantly more expensive in not only price, but also in taxes, HOA fees, interest rate, etc.,” says Andrew Petersen, an agent in Pompano Beach, Florida.
Declutter, donate, throw away.
Stop asking your kids if they want Aunt Emma’s old China. (They don’t.) Specialists can help manage all aspects of decluttering and downsizing, starting with the National Association of Senior & Specialty Move Managers (www.nasmm.org ).
Related: Ideas for decluttering valuable possessions with love and grace
Stage your home.
Sellers need to maximize all the assets of their homes and minimize any feature that will cause buyers to balk. In a time when most sellers have amassed equity in their homes, spending a little to wow buyers is a smart investment in your quest to successfully downsize. “Staging helps the purchaser visually see the potential of the home and leads to an emotional buy,” says Manhattan interior designer Ronnie Rosenberg. “It also usually brings in a higher price and a quicker sale.”
Know your home’s cost basis.
Homeowners sitting on a lot of equity may feel like they’ve hit the lottery. But records and invoices for all the repairs and upgrades tell a different story about what your home cost. For tax purposes, a home improvement is any expense that materially adds to the value of your home, significantly prolongs its useful life, or adapts it to new uses. Documenting these items can reduce your capital gains exposure and, for buyers, demonstrate the investment you’ve made in the home, helping to justify the list price.
Originally published in May 2024; updated to reflect current conditions in April 2026.
Laura Vecsey is a contributing writer at Kiplinger’s Retirement Report. For more on this and similar money topics, visit Kiplinger.com.
©2024 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC.
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