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Questions to ask if you are considering downsizing

How to decide if downsizing is right for you.

For sale sign outside of house

Downsizing your home may be a way to save both money and time. Consider these five questions:

Do you want more free time?

Downsizing can free up time spent on home upkeep and give you more time to pursue other things you enjoy, such as hobbies, traveling or family bonding.

Do you want to cut expenses?

A smaller place may help trim costs, such as mortgage and insurance payments and utilities. But remember to consider the costs associated with selling a home, including realtor fees, closing costs and moving expenses.

Does your home meet your needs?

You may look for a home with living spaces on one floor, a smaller yard or a closer proximity to city life. While you may be able to adapt your current home, moving to a smaller home may be more convenient.

Do you want to improve cash flow?

Selling your home may give you extra cash to put toward retirement savings or free up a portion of your monthly expenses. Downsizing from a $250,000 home to a $150,000 home could save over $5,000 a year.

Do you need room to host?

The right size home for your family may depend on if you anticipate adult children or other relatives moving in with you or frequently hosting visitors.

As with any plans for the future, don't rush into the decision. List the pros and cons and discuss budgets, cash flow and retirement plans with family and financial helpers.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

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