Do downsizers ever downsize?

[NewbieOnHolidays]

We’ve seen so many detached family houses with husband and wife in their 50-60s (kids grew up and left), so now just 2 people living on 200+ sq.m. They all say they want to downsize, put house on the market at an astronomical price and fail to get offers anywhere close to asking and then just take it off the market. So once again a house came up, after 3 weeks they managed to get about 10 people who wanted to view, did an open day, we put an offer below asking, were now told there were 5 offers with 3 above asking, so they rejected our offer. We’ve been in this boat so many times and it always end up same way: we compete against non existent buyers who are very keen, offer way above asking, then we see the house keeps staying on the market or just disappears without sstc. Same street couple of months ago after 3 rounds of best an final competing against “many interested couples” and upping our offer every time we just got fed up and walked away, in few weeks sellers took it off the market. Do downsizers ever downsize?

My DF did.

He sold our 4 bedroom family home to a chain free couple and downsized to a 2 bedroom bungalow.
It was a lot of work but he’s sorted now and more relaxed as a result.

I would love to downsize - my lovely rambling old place is far too big for DP and me.

However - there is currently nothing on the market that I would want to move to and hasn't been for a number of years. We'd also have to have a buyer first before we could make an offer and no buyer would be prepared to wait indefinitely until a suitable property came up for us.

I think I’d want a bigger house when I retire rather than wanting to downsize. I’d want somewhere big enough to have dc and grandchildren if they have them come to stay for family Christmas and other occasions.

Because l think it’s a big reason. It’s ok to pay stamp duty when you upsize because you’re getting more space for your cash.

But downsizing reduces your space. And tbh if l could afford to stay where l was l’d be out off by paying stamp duty to drop down, and would probably decide to stay where l was.

Silly, but true.

But generally the people downsizing have seen the most equity gains. Stamp duty often makes it prohibitive to move up the ladder plus it's more expensive anyway when prices are high.

It's an interesting point - we rent a 200sq m late 70s detached house in a nice area and although it's 4 bed there are only 2 of us - however 1 bed is taken up with clothes rails, suitcases etc and although it's a good size , its not massive- this road is full of couples in their 50s, 60s and 70s- all with this size house and few it seems with family at home. The problem is when you've got lots of stuff what do you move to? In this town it's a lot of big places or terraced houses and flats both modern and old. I doubt they are going to want terraced houses if thinking about the future and a lot of the modern flats are not well built and tiny lounge/kitchen combos-

Reading some of this, my house sounds like it would suit some downsizers. Granted probably downsizers in their 50s/60s as it would need a new bathroom and kitchen. It’s not been owned by a downsizer in the last 30 years though so there’s obviously something missing when it goes on rightmove. Maybe there needs to be a house swap site or a way of finding the downsizers.

I don’t think our offers are unrealistic. Particular street we are interested in has had 3 properties for sale in last 12 months: one probate, two downsizers. On probate our offer was the highest but they went with the 2nd as that one was below the level at which inheritance tax kicks in, ours was above. Two downsizers wanted an arm and a leg on top of the crazy asking prices, we were the only ones offering and they both rejected our offers.

We downsized from a 4 bed detached to a 2 bed apartment. Weirdly its more square footage than the house! (big old mansion). Hasn't stopped the kids and other relations wanting to come and stay 🤷‍♀️

My parents downsized to a more expensive house which they’re constantly describing as absolutely tiny Clearly it’s not . It has 4 beds, 3 baths and is over 2000 sq foot. They’re in their 70’s and adamant they aren’t ever going down to a flat or less than 4 beds.

Tbh the energy prices have put me off wanting a big house.

Some do and some don’t. My parents were supposed to but didn’t, due to a remark made by her sister. My in laws did and happily so. We are moving from incredibly small to not so small but definitely still small.
All the extending of houses has taken out of the market a swath of small two/three bed, 1 bath, garden and garage detached houses and made them into 4 beds, en-suite, utilty, 2 bath plus driveway houses. So there isn’t really anywhere for those that have moved up the property ladder to go. I’m guessing they really don’t want small, steep staired, 1 bath, on street fight for parking terraces. Which is all there is around here unless you want the big family size home they are currently in!

Definitely this. This is a disincentive to moving, summed up as having to pay out more to live in a smaller house. Unless they need to move for mobility, frailty etc few older people want to downsize. They probably bought their house for £50k in the 1980’s, now worth £400k, and balk at paying current market values for a 2 bed flat plus tax and other costs when they could just sit tight. Plus, let’s face it, moving home is a ball ache.

We are nearing retirement and considering options. I think the main driving force is ''the right money'' and when looking around ourselves for the next location, that all seems to be beyond top end of what we would want to spend (the concept being to be able to put excess sale funds away to assist with cost of living).

Also I think people prefer to stay with the devil they know, rather than move to the one they don't. We aren't overly keen on one lot of our neighbours and their music room, but whose to know what we would end up with if we moved.

Finally as one half of a couple, I know what I would move for isn't what DH would. You may find some of these home owners are dithering because One Half isn't ready to make the jump quite yet...

They do want to sell, but obviously not to people like you OP who put in an offer below asking price. In case you haven't noticed, it's a sellers market right now. You might be best hanging on for a bit until the market sways towards the buyers a bit more

So I’ve just checked. If l were to move to somewhere that cost 350 k which wouldn’t get much round mr, stamp duty would be about 17000.

I don’t need to move. Why would l pay out 17000 for something smaller when l don’t really need to move: I might be more tempted if it wasn’t there.

But stamp duty is ridiculous. It’s way too high. When l bought my first house, stamp duty didn’t kick in until 250k. And that was 30 years ago. And now it’s payable at lower rates than that not even accounting for 30 years inflation.

I'm not sure I understand the issue here. You expect them to sell their house for less than a person would who was upsizing? Is this because you judge them to be using up too much space? You think they should be obligated to give up the house to a family who needs the room more?

I'm paying 30k stamp duty in a couple of months for an overpriced terrace 🤬

😳😳😳

i can't afford to upsize again 😆

As a previous poster said, part of the problem may be that one person would like to move, but the other would not. That is certainly the case with my parents. They're mid-70s and in very good health, but I can tell that my mum cannot keep up with the housework in the way that she used to. It's a very large 4-bed semi with a huge garden and large driveway. It's just the two of them rambling around it and my mum would like to move to a more modest house, but my dad will move over his dead body. So they stay put.

A house like my inlaws would cost 130k in stamp duty, it's insane.

If you’re 58 OP, is now the time to be upsizing? Won’t you be downsizing again soon? As another poster has said, it’s a sellers’ market right now, so you’re not likely to get the bargain that you’re obviously seeking. Maybe wait a year or two, although you’ll be 60 yourself then, which is old to be upsizing in my opinion 🤷🏻‍♀️

Oops, you’re not 58 are you?!! Sorry, got muddled there 😮

Ideally as you age you decrease the amount of stuff you have, à la Swedish death cleaning. My grandma is constantly giving me her stuff!