When Downsizing Makes Sense And How To Start

Your home can be a dream come true and still become the thing that drains your weekends, your budget, and your energy. We’re digging into one of the biggest turning points in homeownership: knowing when it’s time to downsize, and how to do it without regret. I’m joined by Colorado Springs REALTOR and RE/MAX top producer Lori Thompson, who’s helped military families and local homeowners buy and sell for decades and who brings a calm, practical lens to a very personal decision. 

We talk about the real signs your house no longer fits, like heating and cooling space you barely use, guest rooms turning into storage, and the slow realization that stairs and yard work aren’t getting easier. Lori walks through the first steps she recommends, starting with defining what you want next: staying in the same area, moving to a one-level ranch, choosing a townhome or condo, or finding a maintenance-free community where an HOA handles exterior work so you can actually relax at the end of the day. 

We also get honest about the emotional side, including the pull to be closer to family and the way grandchildren can turn downsizing into a relocation plan. On the financial side, we break down equity, utility savings, and why a smaller home isn’t always cheaper when you factor in taxes, metro district fees, and ongoing cost of ownership. If you’re thinking about downsizing in Colorado Springs, this gives you a clear framework to decide what matters most and how to plan ahead. 

If this helped you, subscribe, share it with a friend who’s been hinting about “simplifying,” and leave a review so more homeowners can find it. What’s the one thing that would make a smaller home feel like a win for you?

To learn more about RE/MAX Properties Inc. visit:
https://www.LoriThompson.REMAX.com
RE/MAX Properties Inc. 
Colorado Springs 
719-332-1807 

Transcript

Welcome And The Downsizing Question

SPEAKER_01 0:03

Welcome to your Colorado Springs life at home, where real estate meets real talk and maybe a little too much coffee. Hosted by Remax Properties licensed realtor broker and top producer Lori Thompson, a local legend who's been helping military families and civilians buy and sell homes for over 40 years. Whether you're PCSing, upsizing, downsizing, or just daydreaming, Lori's got you covered. Why? Because she's your lifetime realtor. And she actually answers her phone. Imagine that.

SPEAKER_02 0:45

Sometimes a house that once fit your whole life starts feeling a little bigger than you need. Today we're talking about the moment when someday becomes now. Welcome back, everyone. Frederick, co-host and producer in the studio with Remax Properties licensed realtor and broker, Lori Thompson. Lori, how's everything going on your end? Oh, pretty good. How are things on your end? Good, good. Thanks for asking. So, Lori, today's question is when

Signs Your Home No Longer Fits

SPEAKER_02 1:12

is the right time to downsize your home? What are the signs you look for when helping clients make that decision?

SPEAKER_00 1:18

Well, it's kind of interesting. I had a friend who told me once that throughout history, mankind has always tried to fill what is empty and to empty what is filled. So if your house becomes more of a shelter for your stuff, that's one possible clue that it might be time to look at downsizing. A lot of other times it can just be life changes. If you had children who grew up, went away to college, they're starting their own families. When you have more guest rooms than you need, that's a good time to look at, hmm, do I need a house quite this big? Some of the other variables that will kick in is you know, what are your utility costs? Are you heating and cooling a large property? Are you only using a small portion of your house? But then there's things that kick in a lot of times with my clients, and that is that two-story home with the walkout basement on the corner lot, oh, so great for at the time. But now stairs aren't quite as easy as they used to be. Um, and maybe you don't want to spend your weekend working on the yard, cutting the grass and doing the maintenance that comes with it. So there can be a variety of factors on where people decide maybe this is just too much for me.

SPEAKER_02 2:40

Yeah, thanks for that insight.

Picking The Right Next Home

SPEAKER_02 2:42

Um, so what first steps do you recommend for someone who's unsure whether they're ready to downsize or not?

SPEAKER_00 2:49

You know, one thing that I think is really, really important, it's like, okay, now you're thinking about downsizing. What do you want to go to? Do you want to stay in the same area? Would you prefer to move into a one-level ranch? Are you looking at a maintenance-free community where you pay someone else to take care of any outside features? So once they make that determination, it's like, okay, well, if you would like to stay here, let's look at some of what your options would be. And it's taking them through the steps. What are we going to do? Are we going to go from a single family to a townhome? Are we going to go from a townhome to a condo? What is the best life choice for you? A lot of times, though, what I find is when people are looking to downside, there is something that will lure them away to another state. And that something is called grandchildren. So that turns into a relocation, but they also look at making a life change. The most common thing that I run into is they have a great big house, they have lots of rooms that they no longer need, and they want to minimize steps. So that's usually the biggest thing I run into is the stairs aren't quite as fun as they used to be.

Family And The Emotional Pull

SPEAKER_02 4:08

That's true, that's true. So you mentioned grandchildren being a reason. Are there any other or what emotional considerations do you see clients um, you know, struggle with or take into consideration most when they're faced with downsizing?

SPEAKER_00 4:24

Well, what I have heard, and I could be focusing more on just the past year, some of the things I've heard is I've heard a lot of people wanting to be closer to family. And once again, they no longer need a five-bedroom, four-bath house. Their life circumstances have changed. The other things are maintenance and utility cost. Those are the things that I hear the most is gosh, look at these utility bills or maintaining this house. You always have to really balance do I own a home or does a home own me?

SPEAKER_02 5:01

I'm sure it will stick with uh people listening. So thanks for that. So,

Equity Utilities And Real Savings

SPEAKER_02 5:06

okay, going into what you've discussed maintenance costs and everything, uh, what other financial benefits can homeowners expect when they move into a smaller property?

SPEAKER_00 5:16

Um, like I said, other than utility cost, it depends on is their house paid off? How much equity do they have? If they're rolling into a smaller house, is it cheaper than the house they were selling? Which sometimes that can be six of one, half dozen of the other, if they're looking at new construction. I'll give you an example. I had one of my neighbors, and they did have that two-story home with a basement. They ended up selling that home and moving into it was still a single family home, but it was a ranch home in a community where they cut the grass. In other words, there wasn't private backyards. They no longer had a dog. And so they paid a monthly fee, and the HOA would take care of the yard and take care of exterior matters except for the actual physical house itself, mostly because they wanted to come home from work, turn the key, prep supper, and then sit down to relax. They didn't want to take care of all those extra things. So I recently, well, not quite that recently, I downsized from a larger lot to a smaller lot because at the time my kids were still young, but I was paying someone to always cut my grass because it was a big yard. And so I rolled into a house where I had a smaller yard, but it back to open space. And so that hit all of my buttons as I had my views, I had other variables that helped me. And even though we enjoyed the big yard earlier, we didn't spend as much time in the backyard as we used to.

SPEAKER_02 6:59

Yeah, that's all valuable information to take into consideration. Uh, and so a lot of the things you've mentioned can apply to people wherever they are, you know, uh downsizing, whether it's for emotional reasons and family to maintenance costs, those things.

Colorado Springs Market Reality Check

SPEAKER_02 7:14

But more specifically on the local level, how does the current Colorado Springs market influence the decision to downsize?

SPEAKER_00 7:23

I think the things that would influence it would be if they are in a nice area with a home where people are looking for more space, because like I said, remember that it's coming and going with homes. So I have a couple right now, and they're getting ready to sell the great big home now that there's just two of them. There'll be another family that's going to be looking for the great big home. And so going to something that's just a little bit more manageable. I was on the phone with them just a little while ago, and they have been selling and purging and getting rid of stuff. And so for them, it's once again, it's an ease of lifestyle not to take care of the big house and the big yard. So I hate to circle back around, but that's the most common things that I hear. And once again, utility cost, and you just have to look at all the factors. So, what I like to walk them through is okay, what do you have in mind? Let's say they tell me they want something newer, then I show them how newer homes can have metropolitan dues or they can have higher taxes. So let's look at the cost of ownership. And even that isn't always quite as big of a factor because once they look at those numbers, then they can compare it to what they were doing before as far as the time they spend maintaining it, heating it, etc. Then I have one couple that's getting ready to downsize because they are down to their last child, and they want to be snowbirds. So they want a smaller place to live in when they're home, and then they want to hop in their RV and travel around. So there's just so many great lifestyle options that impact people. But most common I'm gonna talk about would be the walkability of the home as far as stairs, what their travel plans or their lifestyle needs are, just whatever it is that makes it more important for them. So if they're gonna stay local, I want them to look at, okay, what direction should we go? And then we look at what's available. We look at payments if they're gonna take out a mortgage, if they're gonna roll their equity into the purchase of another home that they can pay cash for. For every different family, there are a different set of variables. And the most important thing is preparing up front for what it is that they want to do.

SPEAKER_02 9:49

That is true and such great information. Thank

Final Advice And Contact Info

SPEAKER_02 9:52

you so much, Lori, for sharing your expertise, your wisdom, your knowledge. Downsizing is a big decision, and your guidance really helps people understand the timing. Thanks for joining everyone, and we will see you all again next time.

SPEAKER_00 10:04

All right. See you later.

SPEAKER_01 10:10

That's a wrap for this episode of Your Colorado Springs Life and Home. Got questions? Need advice? Just want to talk about interest rates and granite countertops? Call or text Lori at 719-332-1807. Yes, she'll really respond. Or visit Laurie Thompson.remax.com to get started with your lifetime realtor. Because when it comes to Colorado real estate, Lori doesn't just know the market, she is the market.