Downsizing Your Home in Texas: A Guide for Empty Nesters and Retirees
Thinking about downsizing your home in Georgetown? How to time the move, count the real costs, decide which home comes first, carry your over-65 school tax ceiling, and clear out the house.
Downsizing your home in Texas usually starts with a quiet realization: the kids have moved out, the upstairs rooms stay closed, and the yard takes a whole Saturday. Retirement or an empty nest makes a smaller place appealing, but the move has more moving parts than most owners expect. This guide walks through timing, real costs, which home to handle first, Texas property tax rules for owners 65 and older, and how to clear out decades of belongings.
When is the right time for downsizing your home?
The right time is when the house costs you more in money, effort or worry than it gives back, not when a calendar says so. Watch for rooms you no longer use, stairs that feel harder each year, repairs you keep putting off, and a property tax bill that weighs on a fixed income. If two or three sound familiar, run the numbers now rather than waiting for a health event to force a rushed decision.
Talk it over with your spouse and your adult children early. Downsizing touches family memories, and the conversation goes better when nobody is surprised. Decide together what matters most in the next home: one story, less yard, a shorter drive to the grandkids, or simply a lower monthly cost.
What does the move really cost?
The true cost is the price gap between the two homes plus every expense on both ends of the move. Before you commit, write down estimates for each item instead of guessing. On the selling side that list usually includes repairs or updates buyers may ask for, an agent's commission if you list, title and closing charges, and the mortgage payoff if one remains. Ask your lender for a written payoff statement and use that figure.
On the buying side, add closing costs on the new place, movers, possible storage while the timing settles, and furniture that fits smaller rooms. Then compare the new home's taxes, insurance and any HOA dues against what you pay today. Downsizing saves money for many owners, but only the written numbers will tell you whether it saves money for you.
Should you sell the big house first or buy the small one first?
Selling first gives you a firm budget and no double payments, while buying first lets you move once and on your own schedule. Selling first can mean a short-term rental or a stay with family if the new place is not ready. Buying first works best when you can carry two homes for a while, or when the purchase contract allows for the sale of your current home.
A middle path is to line up both closings close together, or to negotiate a short stay in the old house after closing so you only move once. Whatever you choose, get the timeline in writing with both the buyer and the seller you are dealing with.
What happens to your over-65 property tax ceiling when you move?
Your school tax ceiling does not stay behind; Texas lets you carry it to the new home as a percentage. Under Texas Tax Code Section 11.26(g), when an owner who has the ceiling qualifies a different homestead for the same exemption, the school district may not tax the new home more than its normal tax multiplied by the fraction of tax you actually paid on the old home versus what you would have owed without the ceiling.
Section 11.26(h) entitles you, or someone acting for you, to a written certificate from the appraisal district where the old home sits. For a Georgetown home, request it from the Williamson County appraisal district once you qualify the new home for the exemption, then give it to the appraisal district where the new home is located and ask how they want it filed. A person may receive a homestead exemption on only one home in the same year, under Section 11.13(h), and Section 11.43(g) says you must notify the old appraisal office in writing before May 1 after your entitlement there ends.
The timing rules also matter. Most exemptions are judged on your qualifications on January 1, under Section 11.42(a), but Section 11.42(c) makes the over-65 exemption effective for the entire tax year in which you qualify. Ask both appraisal districts how they will handle the year of your move before you close.
What if you deferred property taxes on the house?
A deferral pauses collection; it does not erase the taxes. Texas Tax Code Section 33.06 lets owners who are 65 or older, or disabled, file an affidavit that stops collection on their homestead while they own and live in it. The deferred taxes keep growing with interest and have to be paid off when the home is sold. If you ever filed one, order a tax certificate showing the deferred amount so your net is not a surprise at closing.
How do you clear out decades of belongings?
Start early and work one room at a time, beginning with the spaces you use least. Sort into four groups: keep, give to family, donate or sell, and discard. Measure the rooms in the new home first, so you know which furniture will actually fit, and offer family heirlooms to your children before anything goes to an estate sale.
Photograph items you love but cannot keep. Book donation pickups and a junk hauler ahead of time, and leave the hardest rooms, such as the garage or a parent's old things, for when the easy wins have built momentum.
What are your options for selling the larger house?
Most downsizers either list with an agent, which usually means preparing the house and allowing for showings, or sell to a buyer who purchases as-is. Listing can bring a higher price for a house in top shape. A direct sale can make sense when the house needs updates you do not want to manage at this stage of life. If a direct sale appeals to you, Austin house buyers who purchase as-is around Georgetown are one choice to compare against a listing.
The same choice comes up for downsizers in other Texas towns. If you are leaving a longtime family home in Seguin and comparing buyers there, see how companies that advertise we buy houses in Seguin, TX handle an as-is sale. Either way, get every offer in writing and compare your net after costs.
This article is general information, not legal or tax advice. For your own situation, talk with a Texas real estate attorney, a tax professional or your appraisal district.