Real Estate News

Downsizing Homeowners Face New Considerations Before Listing

Downsizing homeowners must carefully evaluate market timing, financial implications, and personal readiness before listing. Key considerations include current home equity, target market analysis

flareAI Services

20 Sep 2025 — 6 min read

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Picture a retiree in West Michigan, gazing at a sprawling family home now too big for their needs, or a Florida couple ready to trade their beachside retreat for something simpler. Downsizing is more than a move it's a life shift, driven by retirement, cost-cutting, or a craving for less upkeep. But in 2025, selling to downsize comes with new rules. The NAR settlement has shaken up real estate commissions, forcing homeowners to rethink costs, services, and strategies. For downsizers in high-demand areas like Michigan and Florida, this evolving landscape offers both opportunities and obstacles.

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A New Era for Selling

Downsizing has always appealed to those seeking simplicity retirees moving to condos, empty nesters shedding square footage, or families chasing affordability. Yet, the 2024 NAR settlement has transformed the process. Commissions, once a predictable 5-6% split between agents, are now negotiable, giving sellers more control but not always lower costs. Yahoo Finance notes that while flexibility has increased, many sellers still face fees close to traditional rates. The difference lies in choice: platforms like Sidedoor let homeowners pick specific services say, a listing on the Multiple Listing Service (MLS) or contract support without committing to a full-service agent.

In regions like Holland and West Michigan, where retirees are flocking, and Florida, a hotspot for second-home sales, this shift is reshaping decisions. Sellers can now tailor services to their needs, but they must navigate a market where well-funded competitors, like those at West Edge Realty, use slick marketing to dominate. The challenge? Balancing cost savings with the emotional and logistical demands of downsizing.

Trends Redefining the Market

The NAR settlement has sparked a wave of innovation. Sellers can haggle over commissions, with some agents offering rates as low as 1-2% for targeted tasks, according to List with Clever. But lower fees can mean less agent effort fewer showings or scaled-back marketing. In Michigan, where affordable homes draw fierce competition, full-service agents still hold sway, leveraging hefty ad budgets to attract buyers. Florida's market, flush with retirees and second-home sellers, faces similar dynamics.

Enter a la carte services. Platforms like Sidedoor empower sellers to select only what they need: professional photos, a title company like Chicago Title, or a lender like Lake Michigan Credit Union. This approach cuts costs and streamlines coordination, especially in Florida, where downsizers juggle multiple providers. Social media, from Facebook to Instagram, amplifies these efforts, with local agents showcasing tailored marketing to reach niche buyers.

Still, misconceptions persist. Some sellers believe commissions are now “free” or drastically reduced, but as Yahoo Finance reports, savings depend on negotiation and market conditions. Downsizers must stay sharp to avoid overpaying or underselling.

Real-World Wins

Picture a Michigan retiree downsizing from a large family home to a smaller condo. Instead of paying a traditional percentage-based commission, they combine services hiring a photographer, bringing in a contract specialist, and working with a local agent for negotiations paying only for what they need. In Florida, a couple selling their second home takes a similar approach, using one platform to coordinate with a title company and lender, streamlining the process and closing faster. These scenarios show how customized real estate services can help downsizers save money and move more efficiently.

Sidedoor's strength lies in collaboration. Agents, lenders, and inspectors work as a team, not siloed players. A West Michigan agent, active on Facebook, praised this model for letting them focus on deal-closing while clients save on extras. In Florida, where second-home sales thrive, platforms streamline complex transactions, ensuring all parties meet the seller's goals.

Hurdles to Clear

Yet, challenges loom. New platforms face skepticism from sellers used to polished websites from giants like Realtor.com. “Startups can feel untested,” one Holland seller admitted, citing less flashy branding. Competitor's marketing muscle think YouTube ads or TikTok campaigns can overshadow smaller players. And myths about commission changes, like “agents work for free,” mislead sellers, as Yahoo Finance clarifies. Lower commissions can also reduce agent enthusiasm, potentially leading to fewer buyer showings.

Emotionally, downsizing is tough. Letting go of a family home stirs nostalgia, and some sellers prefer traditional agents for hand-holding, even at a higher cost. Platforms must balance affordability with empathy to win trust.

Seizing the Opportunities

The new landscape offers clear wins. A la carte services slash costs $2,000 for a listing and photos versus $15,000 for a full agent package. Transparency empowers sellers, with platforms like Sidedoor detailing fees upfront. In Michigan and Florida, where downsizing is surging, this flexibility is critical. Coordinated services also speed up closings, as seen in Florida's second-home market, where agents, title companies, and lenders align seamlessly.

Strategic moves matter. Staging smaller homes or targeting retiree buyers can boost appeal. Instagram posts from local agents show how niche marketing draws the right audience without massive budgets. For downsizers, it's about aligning services with goals saving money while selling smart.

The Road Ahead

Experts predict more disruption. U.S. News suggests the NAR settlement is just the beginning, with digital platforms set to grow in tech-friendly markets like Michigan and Florida. A Michigan venture capital report highlights rising investment in real estate tech, pointing to a future of streamlined transactions. Sellers should prepare by:

Learning the new commission landscape.
Comparing a la carte versus full-service options.
Using platforms that integrate agents, lenders, and inspectors.

As competition heats up, staying informed is key. Negotiate commissions, explore digital tools, and prioritize efficiency to maximize value.

Downsizing with Confidence

In 2025, downsizing is a journey of strategy, not just sentiment. The NAR settlement has opened doors to cost savings and flexibility, but success demands savvy choices. Platforms like Sidedoor offer a lifeline, connecting sellers in Michigan, Florida, and beyond with tailored services that save time and money. Whether you're leaving a West Michigan family home or a Florida beach retreat, explore these tools to navigate the new real estate world. Your simpler life awaits start planning today.

Frequently Asked Questions

How has the NAR settlement changed real estate commissions for downsizing homeowners in 2025?

The 2024 NAR settlement has made real estate commissions fully negotiable, giving downsizing homeowners more control over costs and services. While traditional 5-6% commission splits are no longer standard, many sellers still pay similar rates unless they actively negotiate. The key difference is choice homeowners can now select à la carte services like MLS listings or contract support instead of full-service agents, potentially saving thousands on their downsizing sale.

What are à la carte real estate services and how much can downsizing sellers save?

À la carte real estate services allow downsizing homeowners to select only the specific services they need, such as professional photography ($500), contract specialists ($1,000), or negotiation support at reduced commission rates (1.5% vs. traditional 6%). For example, on a $300,000 home sale, this approach can save over $12,000 compared to traditional full-service agent fees, making it particularly attractive for retirees and empty nesters looking to maximize their proceeds.

What challenges should downsizing homeowners expect when using new real estate platforms and services?

Downsizing homeowners may face skepticism about newer platforms that lack the polished branding of established companies, and reduced agent enthusiasm due to lower commission structures can sometimes result in fewer showings. Additionally, myths persist about commission changes, with some sellers incorrectly believing services are now "free." The emotional aspect of letting go of a family home can also make some sellers prefer traditional full-service agents for additional support, even at higher costs.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

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