Sell the big house. Buy something smaller. Walk away with a pile of cash and a simpler life. That’s the theory. In practice, Kevin has watched enough downsizing transactions to know where the theory falls apart. Here are the five places it goes wrong most often.
Mistake 1: Overestimating What You’ll Net From the Sale
This is the first and most common trap. Many sellers assume they’ll walk away with the entire equity position — as if selling costs are zero. They’re not. In Montgomery County, sellers should budget for:
Real estate commissions: 2-5% of sale price
Maryland transfer taxes: ~0.5% of sale price
Settlement/attorney fees: $1,000-$2,500
Pre-sale repairs and staging: variable, but often $5,000-$30,000
Moving costs: $3,000-$15,000 for a typical family home
On a $900K sale, total selling costs can run $40K-$70K before you see a dollar. Know your net number before you commit to a purchase price on your next home.
Mistake 2: Buying Too Small
In the excitement of simplifying, downsizers frequently cut space too aggressively and regret it within a year. A guest bedroom that “you don’t need” becomes essential when your daughter visits with the grandchildren for a week. A home office that seemed optional becomes critical if you’re still doing any work or managing investments. Kevin’s recommendation: downsize thoughtfully, not maximally. The marginal cost of one extra bedroom is almost always worth it for quality of life.
Mistake 3: Not Factoring In the New Carrying Costs
The calculation isn’t just “smaller home = lower costs.” HOA fees in maintenance-free communities can run $400-$800+/month. Condo fees often include utilities and reserves that carry their own volatility. A downtown Silver Spring condo at $550K with $700/month in HOA fees has a higher carrying cost than you might expect. Model the full monthly cost of your next home before you commit.
Mistake 4: Moving Into an Area You Don’t Actually Know
Plenty of retirees downsize to a community they’ve visited once or twice and love the idea of. Then they get there in February and discover the restaurant scene is closed Monday through Thursday, the medical facilities are 45 minutes away, and the “vibrant community” is actually a very quiet enclave of people they have nothing in common with. Test-drive a location before you commit to buying there. Rent for a season. Spend a winter weekend. The version of a community you see in spring or summer is not always the version that exists year-round.
TheMontgomery County relocation guidecovers the real-world texture of life in different parts of the county — what it’s like in different seasons, for different lifestyles.
Mistake 5: Not Planning the Timing
Selling and buying simultaneously — in a market with low inventory and competitive offers — is the most logistically stressful version of this transaction. Kevin recommends planning the sequencing carefully:
Option A: Sell first, rent short-term, buy with certainty and no contingencies (stronger buyer position, slightly more logistically complex).
Option B: Find and go under contract on your next home first, then list — coordinating closings to minimize a gap.
Option C: Bridge financing to own both briefly during the transition.
Each has trade-offs. The worst option is selling and buying simultaneously with both contingencies active in a competitive market, where you may lose purchase opportunities to non-contingent buyers. Talk through the sequencing with your agent before you start either transaction.
Frequently Asked Questions
What are the real costs of selling a home in Maryland?
Budget for 5-8% of the sale price in total selling costs — commissions, transfer taxes, settlement fees, pre-sale repairs, and moving. On a $900K sale, that’s $45K-$72K before you see net proceeds.
Should retirees sell their home and rent instead of buying?
In some situations — particularly if relocating to a new area or in poor health — renting first makes sense. For most Montgomery County retirees with substantial equity and stable plans, owning still provides better long-term security and tax advantages than renting. It depends heavily on individual circumstances.
How do I know if I’m downsizing to the right size?
Think 20 years ahead, not just today. A home that works physically at 65 should also work at 80. One-level living or elevator access, proximity to medical care, and enough space for occasional family visits are the three non-negotiables Kevin recommends for every downsizer.
What’s the best way to time selling my home and buying a new one in Montgomery County?
Sell first, rent short-term, then buy with cash certainty is the cleanest option in today’s competitive market. It gives you the strongest possible buying position — no sale contingency — and eliminates the risk of carrying two homes simultaneously.
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Sources and next steps
Verified local sources:U.S. Census QuickFacts for Montgomery County;WMATA maps and schedules;Montgomery County Open Data;Montgomery Parks trails and facilities.
Related Kevin guides:relocation guide;home buying guide;book a call.
Watch the YouTube videoorbook a 30-minute strategy call with Kevin.
Expanded local research sources:Visit Montgomery travel guide;Visit Montgomery restaurant directory;Tripadvisor Montgomery County things to do;Tripadvisor Montgomery County restaurants;Google Maps restaurants near Montgomery County;Google Maps things to do near Montgomery County;Reddit MoCo discussion search for Montgomery County;Reddit thread: moving from DC to MoCo;Reddit thread: visitor activities in MoCo;WMATA rail and bus maps;Montgomery Parks;Montgomery County Open Data;Niche Montgomery County livability;MoCo360 local news.
Contextual links for this video
Kevin site links:home selling guide;home buying guide;Montgomery County relocation guide;market stats;California to Maryland: The Honest Truth About Relocating to Montgomery County.
Outside research links for this video:Visit Montgomery travel guide;Visit Montgomery restaurants;Google Maps restaurants near Montgomery County;Reddit discussion search for this topic;Google context search for this video.
Kevin process link: why Kevin’s local process matters.