What are some common downsizing mistakes to avoid?

1. Overestimating what your current home is worth. It’s easy to fantasise about the high price your house will fetch, especially if you’ve been out of the market for some time. Get a valuation by a real estate agent – and look around online at what similar houses in your area sold for. This will give you more realistic expectations.

2. Underestimating what a new home will cost. Everyone wants and likes to think they might score a bargain but these are extremely few and far between, especially in Australia’s housing market in recent times, so don’t bet on it.

3. Ignoring the pension or tax implications. There are implications to banking the proceeds of your home sale, and they can mean losing your Age Pension, so it’s important to know the rules around that and the tax implications.

4. Forgetting about the costs involved in selling a property. There are all sorts of fees for agents, auctioneers, marketing, conveyancing and lender’s fees. Get across these before you set about downsizing.