I recently helped couple through their downsizing journey in Santa Clarita. It was one of those experiences that reminded me how much real estate is really about solving problems and helping people move into the next chapter of life as smoothly as possible.
They needed to downsize into a single-story home that would better accommodate their adult son, who uses a wheelchair. Their current home simply wasn’t meeting his needs anymore, and even simple day-to-day navigation inside the house had become difficult.
The thought of downsizing can be overwhelming. After all, you have years and years of accumulated memories and items built up. In this case, one of their biggest concerns was what it would take to get their home ready for the market. They knew the home needed updates for buyers to truly see its potential, but because their son was still living in the home and using a wheelchair, they worried that if they completed major improvements too early, things like fresh paint, repaired walls, or updated bathrooms could quickly get damaged again during daily use.
On top of that, they were facing the possibility of a difficult double move (I write about other clever ways to avoid this later on). They would have needed to find a temporary rental that could accommodate a wheelchair, their dog, and all of their belongings while we prepared the home for sale. The entire process felt overwhelming.
As we talked through their downsizing options, I realized they might be a great fit for a program offered through one of our lending partners. The program allowed them to purchase their next home using the equity from their current home before selling it. Then, once their home sold, they could apply the remaining proceeds toward the loan and recast it into a lower monthly payment without needing to refinance.
Just as this family faced the classic downsizing hurdles, one of the biggest questions we hear from downsizing homeowners in Santa Clarita is: “Should we sell our current home first or buy the next home first?”
The answer? Well, it depends.
Every downsizing situation in Santa Clarita is different depending on:
- Which path you go (Buy first Vs Sell First)
- How comfortable you are carrying two mortgages temporarily
- Contingent offers
- Your financing options
- Where in Santa Clarita you’re moving to/ from
- Current Santa Clarita real estate market conditions
After helping many Santa Clarita homeowners downsize over the years, one thing is always true: The biggest stress usually is not the real estate transaction itself, but the logistics of the move. In this article, I hope to show you the different paths in downsizing and things to consider specifically when downsizing in the Santa Clarita Valley.
If you are considering downsizing in Santa Clarita, understanding your options ahead of time can save you stress, money, and costly mistakes.
Downsizing in Santa Clarita: The 2 Paths
When downsizing in Santa Clarita, there are generally two paths:
- Buy first, then sell
- Sell first, then buy
Both strategies can work very well depending on your financial situation, your timeline, and the current California housing market.
Path 1: Buy First, Then Sell
For many downsizers, buying first creates tremendous peace of mind because they already know where they’re going.
That emotional certainty matters more than people realize.
When you already have your next home lined up, you know what furniture will fit and what you’ll need to let go. You also avoid the stress of wondering where in Santa Clarita you’ll end up. .
Buying first can also make preparing your Santa Clarita home for sale much easier. In many cases, homeowners can move out before showings begin, which means:
- no constantly cleaning the house,
- no coordinating pets during showings,
- and less disruption to daily life.
Sometimes the home can even be professionally staged after moving out, helping maximize the final sale price and attract stronger offers in the Santa Clarita housing market.
Path 2: Sell First, Then Buy
Selling first is often the safest financial route.
Once your current home sells:
- you know exactly how much cash you have,
- you can use that equity toward your next purchase,
- and you become a much stronger buyer.
This is especially important if:
- you need the proceeds from your current home to qualify,
- or you simply don’t want the stress of owning two homes at once.
Selling first also makes your current home more attractive to buyers because your sale is no longer contingent on you finding a replacement property.
That usually means:
- smoother negotiations,
- more interested buyers,
- and often a better price for your Santa Clarita home.
The Downsides of Selling First
The biggest downside is uncertainty.
You may not know exactly where you’re going yet, and that can feel very unsettling for homeowners who’ve lived in the same house for many years.
It can also create temporary housing situations where:
- belongings go into storage,
- you stay with family,
- or you rent short-term housing while searching for the next home.
While there are pros and cons to both paths of downsizing, buying first can ultimately help you avoid one of the biggest downsizing headaches: The double move, or carrying two mortgages at the same time.
How Comfortable Are You Carrying Two Mortgages Temporarily?
The biggest concern of selling first and buying second when downsizing is the financial risk. Some homeowners worry about temporarily carrying two mortgage payments, bridge financing, or additional debt while waiting for the current home to sell.
That’s why having a solid downsizing plan matters.
If we can show our sellers exactly how we’re going to prepare the home, market it properly, and maximize the sale price, it often gives them much more confidence moving forward with purchasing the next home first.
Avoiding Two Mortgages: Selling Subject to Finding a Replacement Home
There’s also a middle-ground option some downsizers choose. In this situation, a seller puts their home on the market and accepts an offer, but the sale is contingent on them finding and closing on a replacement property first.
This option gives sellers:
- time to search for the right home,
- confidence that their current home is already in escrow,
- and the security of knowing they are not forced to move if they can’t find the right replacement property.
The downside is that some buyers may feel hesitant because there is uncertainty around the seller’s timeline and whether the seller will ultimately remove the contingency.
So while it’s not always the ideal setup from a buyer’s perspective, it can absolutely be a useful strategy in the right situation.
Contingent Offers Are More Common Than People Think
Across California, and really across the country, more sellers are becoming open to contingent buyers depending on the market.
But there are levels to how strong a contingent buyer is.
For example:
- A buyer who hasn’t listed their home yet is in a weaker position.
- A buyer whose home is already on the market is stronger.
- A buyer already in escrow with inspections and loan approval completed becomes much stronger.
The strength of a contingent offer depends heavily on timing, preparation, and current market conditions.
Financing Options That Help Downsizers Buy Before Selling
Many downsizers don’t realize how many financing tools exist today to help bridge the gap between buying and selling.
Understanding these options can make downsizing in California much smoother.
HELOCs (Home Equity Lines of Credit)
If you have substantial equity in your current home, a HELOC may allow you to access part of that equity before selling.
That money can often be used for:
- the down payment on the next home,
- moving expenses,
- or even purchasing the next property entirely.
In some cases, homeowners can actually use their equity to become cash buyers temporarily.
Once the current home sells, the HELOC is simply paid off from the proceeds.
For many longtime Santa Clarita homeowners, this can create tremendous flexibility.
Mortgage Recasting
A mortgage recast is one of the most underutilized downsizing tools.
Here’s how it works:
A homeowner purchases the next home with a smaller down payment initially. Then after selling their current home, they apply a large lump sum toward the new loan principal.
The lender then “recasts” the loan by re-amortizing the remaining balance.
The benefits:
- lower monthly payments,
- keeping the original interest rate,
- and avoiding a refinance entirely.
For many downsizers, this creates tremendous flexibility while preserving favorable financing terms.
Bridge Loans
Bridge financing allows homeowners to purchase the next home before selling the current one.
While bridge loans can be more expensive short-term, they can also:
- eliminate contingencies,
- strengthen purchase offers,
- and simplify the transition.
Sometimes spending more upfront creates negotiating power that saves money overall.
Bridge loans can especially make sense for homeowners who:
- have substantial equity,
- but lower qualifying income,
- or situations where a HELOC or buy-now-sell-later program may not work.
Buy Now, Sell Later Programs
Some lenders now offer programs specifically designed for homeowners who need to buy first.
These programs may temporarily exclude the existing mortgage debt from qualifying calculations, allowing buyers to qualify for the new home before selling the old one.
Once the new home closes, the previous home is then listed and sold.
These programs can be especially helpful for downsizers who have strong equity but are limited by debt-to-income ratios.
Lastly, Consider Where in Santa Clarita You Are Moving To
**This section needs some workshopping** Do we want to go the route of just briefly touching on some popular communituies folks in SCV move to when their downsizing, overview of all 55+ communities.
When downsizing in Santa Clarita, another important question to ask yourself is “what type of community is right for me?” Do you want to stay in the same neighborhood, just in a smaller home? Or would a 55 plus community make sense. Santa Clarita is home to 8 55+ communities including:
Thinking about downsizing in Santa Clarita but don’t know where to start? We are here to help with your downsizing plan from start to finish
HOLLY THOMPSON HOMES
(661) 714-2772
Holly Thompson, Realtor DRE 01825192
REMAX OF SANTA CLARITA
