Once the kids are off to college or have an apartment of their own, your home might seem too large and too expensive.

Some seniors look into downsize in retirement to simplify their lifestyle. A smaller home may mean less maintenance and lower utility bills and upkeep costs. A condo may have amenities or enhanced security if you plan on taking more trips in retirement.

The advantages of downsizing for seniors may appear obvious, but as with any financial decision, weigh the pros and cons to see if they make sense for you.

REVIEW YOUR COSTS

If you’re downsizing your home to save money, calculate your monthly and annual expenses such as your mortgage, taxes, insurance, utilities and maintenance fees. Factor in estimated repairs and the cost of replacement items, especially if you have an older home.

Compare those figure with the price of smaller properties. Real estate websites such as Zillow.com offer property tax history and estimated mortgage payments.

HOUSING MARKET TRENDS

When looking to downsize, you should evaluate the current housing market to make sure you have realistic expectations. You may also want to meet with a Realtor to discuss how much you can expect to sell and buy for. You may find that downsizing may not make as much financial sense as you thought. On the other hand, those with lots of equity in their homes may be able to sell, purchase a smaller property with cash and invest the rest to help fund their retirement.

Don’t forget to factor in the expenses that come with buying and selling property, such as your Realtor’s commission and closing costs. Your Realtor may suggest that you complete repairs or stage your home prior to putting it on the market, which may eat into your profits. You may also want to speak to a tax advisor if selling your home.

MEET YOUR NEEDS

Think about what you want to accomplish by downsizing. If you want to do less yard work, look at a townhome where common areas are maintained by an association (while taking into account the added maintenance fees). If you’re tired of home repairs, consider a new construction. If you want to be closer to town or enjoy amenities like a pool or entertaining area, you may want to consider a condo in Kakaako or other trendy areas.

Look at the space in your current home. If you frequently have houseguests or plan on using your extra room to start a home business, downsizing may not make sense for you right now.

Renting is an often-overlooked option for seniors looking to downsize. You won’t have to pay for repairs and you won’t be tied down to a property if you want to move again. Those who have paid off their mortgage may even want to consider renting out their house, using part of the income to rent a smaller place and investing the rest toward their retirement.

Downsizing for retirement can help reduce their expenses and change seniors’ lifestyles. Check with the experts to see if making the move is right for you.