Important things to consider before downsizing your home: First, what is the financial impact? Moving to a smaller home isn't always less expensive than staying in the home you have now. Secondly Amenities. Be sure to identify which amenities are important to you. Downsizing doesn't necessarily mean you need to compromise your standard of living. Third, Neighbors and Community. Who you live around can make or break your experience in a new home. Fourth, Living Space. As you get caught up in the excitement of moving, it can be incredibly costly to get a move wrong. Fifth-Long Term Plans. Be sure to consider your LONG-TERM PLANS, including your potential LONG-TERM CARE NEEDS before choosing your next home. And lastly, OVERALL HAPPINESS LEVEL. Downsizing can improve your overall well-being. A recent study says that people who downsized as part of their retirement plans were ultimately happier than those who stayed put.