Stage guide
Downsizing and right-sizing
Right-sizing is about finding a home that fits the life your loved one wants now. Planning ahead turns a big change into a series of manageable decisions.
Short answer
Right-sizing goes smoother when your loved one leads the choices and the family works from one written timeline. Decide what comes next first, then sort room by room, and bring in licensed professionals for the home and any legal questions.
Is right-sizing the right step?
Many older adults start thinking about a smaller home when stairs, yard work, or upkeep become harder, or when they want to live closer to family. Others plan ahead while healthy so the choice stays theirs. The best time to talk about it is before a crisis forces a fast decision.
Deciding where
Options include a smaller single-family home, a condo, a single-level home, an age-restricted community, independent living, or renting. Talk through what matters most: one-floor living, distance to family and doctors, transportation, maintenance, and the total monthly cost of each option.
Sorting belongings
A lifetime of belongings is often the hardest part. Go room by room and give each item a decision: keep, give to family, sell, donate, or discard. Photos let siblings who live far away claim meaningful items. Writing down who receives family heirlooms can prevent hurt feelings later.
Timing the sale and the next home
Families usually choose between selling first, buying first, or closing both at about the same time. Each path has tradeoffs in cash, stress, and carrying costs. A licensed real estate agent and a licensed lender can explain what fits your loved one's situation.
Taxes on the sale
IRS Publication 523 explains how gain on the sale of a main home is treated, including an exclusion for people who meet ownership and use tests. Read the publication and ask a CPA or enrolled agent how it applies before the sale, not after.
Next step, before listing
Get matched with a trusted local real estate agent (free)
When your loved one is ready to sell the current home or buy something smaller or easier to live in, a local agent who knows these transitions can make the sale and the next home fit together.
A good local agent can help with:
- Experience working with older adults, families, and estates
- Pricing the home to fair market value, which matters for Medicaid, taxes, and any family sale
- Coordinating with the executor, the person with power of attorney, or the attorney
- Deciding whether to sell as-is or make repairs first
Before you list, finish the checks: the Medicaid look-back and fair market value, any reverse mortgage, power of attorney or executor authority, the deed and title, and vacant home insurance.
Free to your family, in any state. We'll review your request and follow up. See the referral disclosure at the bottom of this page.
What to do first
- After the Medicaid, reverse mortgage, power of attorney, deed and title, and insurance checks, get matched with a trusted local real estate agent (free) before you list.
- Ask your loved one what they want their days to look like in the next home.
- List must-haves: one floor, fewer stairs, distance to family, doctors, and transportation.
- Compare options side by side, including the full monthly cost of each.
- Start sorting one room at a time with the Downsizing Planner.
- Talk with a licensed real estate agent about timing and with a lender if financing is involved.
- Read IRS Publication 523 and schedule a conversation with a tax professional before listing.
- Set a target date and work backward to build the timeline.
Common questions
How long does right-sizing usually take?
It varies a lot by family. Sorting belongings and preparing a home often take longer than people expect, so building a timeline that starts well before the target date helps.
Should my loved one sell first or buy first?
It depends on cash available, financing, and how much overlap your loved one can handle. A licensed agent and lender can walk you through the tradeoffs for your situation.
Will my loved one owe tax on the sale of their home?
IRS Publication 523 explains the rules, including an exclusion for people who meet ownership and use tests. A CPA or enrolled agent can tell you how it applies to your loved one.
What do we do with things nobody wants?
Options include donation, consignment, estate sale companies, and cleanout services. Ask for written estimates before hiring anyone.
When to bring in a licensed professional
Kinhaven handles the organizing. These decisions call for someone licensed:
- A licensed real estate agent for pricing, preparing, and selling the home or finding the next one.
- A licensed lender for any financing, bridge options, or a reverse mortgage. HUD requires counseling with a HUD-approved counselor before a reverse mortgage.
- A CPA or enrolled agent for capital gains and tax questions.
- An elder law attorney before any sale proceeds are gifted to family, because gifts can affect future Medicaid eligibility.
Sources and further reading
- IRS Publication 523, Selling Your Home
- National Institute on Aging: Aging in place
- Eldercare Locator, a public service of the U.S. Administration for Community Living (1-800-677-1116)
Links go to public government resources. Kinhaven is not affiliated with these agencies.
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