The Surprising Costs of Downsizing Your Home

Downsizing isn't for everyone, but it's one of the few strategies available to near-retirees who find themselves short on retirement savings and don't have time to catch up, says Steven Sass, of the Center for Retirement Research at Boston College. Before you sell your house and move, add up the costs that can chip away at the amount you free up. For starters, fixing up a house to sell often means spending thousands of dollars in repairs and upgrades. Once the house does sell, you'll pay commissions to real estate agents on both sides of the transaction, usually to the tune of 6% of the home's value. Of course, moving to a condo or apartment allows you to cut your utility bills, eliminate yardwork and snow shoveling, and get rid of your mortgage or trade it for a smaller one -- and maybe you'll make your kids chip in for the beach house. Still, be sure to add up the pluses and minuses before you put out the For Sale sign, not after.