We did it 2 years ago, my beautiful 6 bedroom house with living room/dinning/study/craft my biggest lost, the utility room, I didn’t realise how much I would miss it !
it was just the 2 of us and bad health meant a bungalow. 4 bed, two bathrooms (1 en-suite) supper large living room the reason we chose this one, conservatory and large kitchen / dinner. I have bed 3 as my craft room, and hubby has the double garage for his woodwork. It has a beautiful garden which makes it worth while. Trouble is our daughter has now moved home so bed 2 is now used but we still have a spare room so manage ok using that as spare room / office ( both retired but do charity work needing office space )
it was very difficult selecting what to bring and what to loose. I would suggest you go round with some stickers, red keep/blue would like/yellow go, you both do it !
you then measure and double measure to see what fits and adjust the red stickers.
the biggest best advice I can give, is hire a storage place, we had loads we weren’t sure about and some we really wanted but didn’t think would fit, all this went into storage. The first year felt we were forever switching about what was in store and what we had, but eventually I think we have it sorted though we’ve kept the storage unit as it’s easier to use than getting in and out the loft and well we still have stuff 🙄.
it is hard, very emotional letting things go, and yes being in a smaller property is difficult especially now with 3, but you adjust, just have somewhere which is your own space, mine is the craft room and his the garage but you get that even in a big house you need somewhere to hid.