Downsizing in the Lakes Region: A Practical Guide to Selling Big and Buying Right
Downsizing in the Lakes Region: A Practical Guide to Selling Big and Buying Right
How do you downsize in the Lakes Region without losing your footing? Decide the order of the sale and the purchase, start sorting the house early, and know what you want in the next home. Then check New Hampshire's property-tax rules, which depend on your town and your timing.
Sell first or buy first?
Here's the thing: neither order is right for everyone, because each has a trade-off. Sell first, and you know your budget but need somewhere to land in between. Buy first, and you may carry two housing costs for a while. A bridge loan is short-term financing secured by your current home; lenders set their own terms, and for a Fannie Mae-backed mortgage the lender must document that you can carry the new home, the current home and the bridge loan together. A rent-back, also called post-closing occupancy, lets you stay for an agreed period after closing. Get any rent-back in writing and have your attorney review it.
A lifetime of stuff
Start earlier than feels necessary, and start with the rooms you use least. Sort everything into keep, give, sell or toss, and measure the next home before you decide what moves with you. Ask family about meaningful pieces now, not the week of closing. Oil-based paint, stains, solvents and pesticides are household hazardous waste, so ask your town office when the next collection day is.
Choosing what matters in the next home
Make your own list. Common items are a bedroom, bath and laundry on the entry level, lower maintenance, and a plan for winter. A condominium or HOA usually trades monthly fees for shared upkeep, and what the association covers depends on its documents. A small single-family home gives you more control and more to look after. For a resale condominium, RSA 356-B:58 requires the association to provide, within 10 days of a request, a package that includes anticipated major expenditures for the current and next two fiscal years, the reserve status, the declaration, by-laws and rules, and any special assessments made in the last three years.
Then ask who plows. Under RSA 229:5, Class V town roads are ones the town has the duty to maintain regularly, while Class VI roads are existing public ways the town does not maintain that way. Private roads have their own arrangements. Find out who plows the road, who plows the driveway, and who pays.
How 55-and-older communities are defined
Some communities operate as housing for older persons under the federal Housing for Older Persons Act (HOPA), an exemption to the Fair Housing Act's familial-status protections. Under HUD's 55-and-older rules, a community must be intended and operated for occupancy by persons 55 or older, with at least 80% of occupied units having at least one resident who is 55 or older. It must publish and follow policies showing that intent, and verify residents' ages, with updates at least every two years. The exemption covers familial status only; it does not permit discrimination based on race, color, religion, sex, disability or national origin.
That describes how the rules work, not a recommendation for any household. Each community's own published policies and documents govern who may occupy it.
New Hampshire property-tax relief to ask about
Two programs are worth a call, and neither is automatic. The elderly exemption (RSA 72:39-a and 72:39-b) is adopted by each town, which sets the amounts and the income and asset limits, within state minimums. Amounts can differ for ages 65 to 74, 75 to 79, and 80 and older. Applicants need three consecutive years of New Hampshire residency, and applications go to the town by April 15 (RSA 72:33). If you move, an amended application is due by December 1 after the move.
The second is Low and Moderate Income Homeowners Property Tax Relief from the NH Department of Revenue Administration (DRA). It looks at household income and your homestead, not age. You must own the homestead and have lived in it on April 1, and claims are filed with DRA between May 1 and June 30 (RSA 198:57). Limits can change, so check with your town's assessing office and DRA before you plan around either one.
What sellers should know
Choose your timeline first, then price and prepare around it. Ask for a written net-proceeds estimate before you commit to buying, so you are planning around real numbers. April 1 matters here: it starts the property tax year (RSA 76:2), and both programs above look at that date, so ask your town how a closing date could affect you before you set one.
If you have owned for many years, ask a tax professional how the federal home-sale exclusion's ownership and use tests apply to you (IRS Topic 701 and Publication 523). And pull any septic, well and dock paperwork now.
FAQ: Downsizing in the Lakes Region
Should I sell my house before I buy a new one? It depends on your finances and how you feel about carrying two housing costs. Talk with a lender and your attorney early, and I can help you compare both orders against your timeline.
What is a bridge loan? It is short-term financing secured by your current home, used to help buy the next one before the first sells. Terms and costs vary by lender, so compare offers.
What does 55 and older mean for a community? Under HUD's rules, at least 80% of occupied units need at least one resident who is 55 or older, and the community must publish its policies and verify ages.
Is there property-tax relief for New Hampshire homeowners? Ask your town about the elderly exemption and ask DRA about the low and moderate income program.
This is general information, not legal or tax advice, so confirm the details for your situation with your town, DRA, an attorney or a tax professional.
Thinking about downsizing?
Whether a move is near or years away, I am happy to talk through the order of sale, the timing, and what your current home is worth today, with no pressure.
Cami Navoy - Cami Navoy & Associates, Keller Williams Lakes & Mountains Realty, Meredith, NH
