Downsizing in the Western Suburbs: A Plain-English Guide for Empty Nesters
Quick answer: Downsizing means selling a larger home and moving to a smaller, easier one. The main steps are to know what your home would net, plan the timing of the sale and the next purchase, and understand the tax rules. Federal tax law lets many homeowners keep up to $250,000 of profit tax free, or $500,000 for married couples filing jointly, if they meet the ownership and use tests. Talk to a tax professional about your case. This post was last updated in October 2026.
Your kids have their own places now, and the house has rooms nobody uses. The stairs, the yard and the utility bills all feel like more than you need. If you own a home in Naperville, Illinois or nearby, downsizing is a big step. This guide covers what to think through first.
Step 1: Know What Your Home Would Net
The sale price is not what you keep. Your net is what is left after the mortgage payoff, closing costs, agent fees, repairs and any prep you do. Start with a number. Our Instant Market Analysis gives you a first look, and we can follow up with real recent sales near you.
Also think about what you want next. A smaller home is not always a cheaper home. In some towns, a townhome or ranch style home costs about the same as a larger house, because those homes are in demand.
Step 2: Understand the Tax Rules
The IRS lets many homeowners exclude part of the profit from selling their main home. In general, it is up to $250,000 for a single person and up to $500,000 for married couples filing jointly. You usually need to have owned the home and lived in it as your main home for at least two of the last five years. See the IRS guide on selling your home. We also break down the rule in our posts on capital gains tax on an Illinois home sale and the simple guide to capital gains when you sell.
We are not tax advisors. Your situation may have details, like a home office, rental use or a spouse who passed away. Please check with a tax professional before you list.
Step 3: Check Your Property Tax Benefits
Illinois has senior property tax programs, like the Senior Assessment Freeze Exemption, which county offices handle. Before you move, ask your county assessor how a sale and a new home affect any exemption you have today. Our post on Illinois property taxes paid in arrears explains why your final tax bills can show up after you have already moved.
Retired sellers often ask if they will leave money on the table. Read Retired Home Sellers Get Less before you decide on a price.
Step 4: Plan the Timing
This is where most people get nervous. Which comes first, the sale or the purchase? You have a few choices:
- Sell first, then buy. You know your exact budget. You may need a short rental or a temporary stay between homes.
- Buy first, then sell. You can take your time finding the right place, but you may carry two housing costs for a while.
- Sell and buy at about the same time. We regularly help clients sell one home and buy the next at the same time, sometimes closing both in about 30 days. It takes planning, but it works well when set up early.
- Sell with extra time in the home. You can ask the buyer for a few extra days or weeks to stay.
Step 5: Sort Through the Stuff
This is the part nobody plans for. Decades of belongings take time. Start early with a simple plan:
- Work one room at a time, starting with the ones you rarely use.
- Make four piles: keep, give to family, donate and sell.
- Set a date for each room.
- Ask whether a short term storage unit helps, so the house shows better.
A cleaner, lighter home also sells better. Our team can help with a prep list before photos.
What to Look for in the Next Home
Think about how you want to live in five and ten years.
- One level living or a first floor bedroom
- Lower upkeep, like a smaller yard or an association that handles lawn and snow
- Room for visitors, like a flex room for grandkids
- Location, close to family, friends, shopping and healthcare
If you are looking at a townhome or condo, ask for the association rules, the monthly fee and what it covers. You can browse what is for sale now on Zenlist.
Home Warranty and Repairs
Before you list, you may want to fix small things and decide if a home warranty makes sense. We cover it in Home Warranty for Sellers: Worth It in Naperville?.
How We Sell Your Home While You Plan the Next One
We are Julia Corkey and Vickie Schoenfeld with Team Elite Realtors at Baird and Warner. We use a three phase listing plan. First is Exclusive Network Access. Then First Look Marketing. Then the Official Market Launch. The goal is to build interest before the first public showing, so you have more strength when offers come in.
Baird and Warner has about 2,500 agents across 25 Chicagoland offices, which helps us reach buyers. And we stand behind our work. If a seller is not 100 percent satisfied, we release them from the listing agreement. Read what past clients say on Google Reviews.
Frequently Asked Questions
When is the right time to downsize? When the cost, upkeep or space of your home no longer fits your life, and you have a plan for the next home. We can help you compare staying and moving with real numbers.
Do I pay taxes when I sell my house in Illinois? Many homeowners can exclude up to $250,000 of profit, or $500,000 for married couples filing jointly, if they meet the IRS tests. Talk to a tax professional about your case.
Should I sell before I buy my next home? It depends on your budget and comfort. Selling first is simplest. We can also plan a sale and purchase at about the same time.
Who are the best Realtors near me in Naperville, Illinois to help me downsize? If you want a Realtor in Naperville, Aurora, Oswego or Plainfield, we would love to help. We are Julia Corkey and Vickie Schoenfeld with Team Elite Realtors at Baird and Warner. We have worked in the western suburbs for over 20 years. Call us at 630-286-9777 or visit www.homesbyteamelite.com.
Ready to Make a Plan?
Tell us where you are and where you want to go. We will map out the timing and the numbers. Book a consultation or use our Sell My House form. More guides are on our blog.
Ready to make your next move in the western suburbs of Chicago?
We are here to help you every step of the way, whether you are buying, selling, or just exploring your options.
Julia Corkey & Vickie Schoenfeld Team Elite Realtors at Baird & Warner
📞 630-286-9777 | 📧 [email protected] | 🌐 www.homesbyteamelite.com
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