I once consulted a couple who were preparing to downsize their large home near Miami. They were torn between moving to a condo or a smaller single-family home. I first explained how the two options differ within the same budget. While condos come with maintenance fees, they require less attention to upkeep, whereas smaller single-family homes have no maintenance fees but require the owner to manage items like the roof and air conditioning.

The recent median sale price in Miami is around $594,250, which is a 0.96 percent decrease from the previous year. The sale-to-list price ratio has dropped to 94.68 percent, and the percentage of offers exceeding the asking price is only 8.72 percent, indicating a market that favors buyers in negotiations. For sellers planning to downsize, setting a realistic price has become more important than before.

In such a market, the role of an agent includes the following:

• Comparative market analysis to determine appropriate selling and buying prices
• Drafting offers and negotiating
• Reviewing contract clauses
• Coordinating inspection and appraisal schedules
• Managing the entire closing process

Downsizing involves transactions that intertwine selling and buying, making the ability to coordinate the closing schedules of both contracts particularly important.

Since the NAR lawsuit settlement in 2024, it has become standard for buyers to sign a written Buyer Agency Agreement before viewing properties. In a downsizing transaction that involves both selling and buying, understanding the commission structures of both the seller's and buyer's contracts makes it easier to predict the overall timeline and costs.

When reviewing the options of condos and single-family homes, working with an agent who understands both the language and culture allows for accurate verification of contract clauses in Korean. You can also compare the proximity to areas with a high Korean population, Korean markets, and religious communities, and if the agent has experience with procedures for transferring assets to children in Korea or handling international remittances and non-resident foreigner tax issues, they can guide you through the process without missing any steps. A reliable network of attorneys, mortgage brokers, and inspectors can make the process of making significant decisions after retirement much smoother.

In downsizing transactions, changes in commission structures must also be considered. In the past, the seller's commission often included the buyer's share, but now the commission rates must be negotiated separately for both the seller's and buyer's contracts. If the same person is both selling and buying, it can be helpful to compare the commission terms of both contracts side by side. When considering condo maintenance fees, it becomes easier to determine which option has a lower overall burden.

Coordinating appraisal and inspection schedules also becomes doubly complicated in downsizing transactions. You need to ensure that the inspection dates for the home being sold and the one being purchased do not overlap, and you should assess in advance whether temporary housing will be needed between the closing dates of the two transactions. Meeting with an agent who meticulously handles these practical arrangements can significantly reduce the unique hassles of downsizing. If the gap between the closing of the home being sold and the one being purchased is too short, it can disrupt moving company schedules, and if it's too long, it can incur double housing costs, so balancing these dates is a practical contribution from the agent. After closing, there are still things to check. If it's a condo, it's wise to confirm any planned maintenance fee increases or special assessments before moving, and for a single-family home, you can finalize the transaction by checking whether the title transfer has been properly recorded with the county.

This article is not investment or legal advice, and tax and maintenance fee conditions may vary by building and county, so consulting with a professional before finalizing any contracts is recommended.