A Quick Look at the Way Forward for Downsizing Seniors

Downsizing after 60 in Colorado: the way forward, step by step

Downsizing later in life is two moves at once: selling the house you know and buying a home that fits the next twenty years. In Colorado that plan has its own rules, from the senior property tax exemption to how 55+ communities work. REALTOR® Brian Lee Burke and our team of real estate agents at The Kenna Group at Keller Williams DTC have walked many Denver-area homeowners through it, and this is the order we recommend. Start with a free Smart Pricing Report on your house. Call or text 303-955-4220. A live person answers.

Downsizing in the Denver metro · Colorado 55+ communities · Downsizing in Highlands Ranch

What the next home should have

Most downsizers we work with ask for the same short list. Use it on every tour:

• One level or a main-floor primary bedroom. Search ranch homes or homes with a main-floor primary, and read the listing for stairs at the entry.
• A step-free way in from the garage or the front walk.
• Wider doorways and a walk-in shower, or room to add them; ask a contractor for a price before you offer.
• Lever handles and good lighting are cheap to add. Structural changes are not.
• Who does the outdoor work. Patio homes and townhomes often include snow and landscaping in the HOA dues; read what the dues cover. See 55+ patio homes in Colorado.

Brian spent 25 years in construction, 13 as a multifamily construction superintendent, so we point out on the tour what a change will cost and what the house will not allow.

55+ communities and the senior property tax exemption

Federal fair housing rules let a community limit sales or rentals by age only if it qualifies as housing for older persons. For a 55+ community that means at least 80% of occupied homes have at least one resident 55 or older, the community publishes and follows policies showing it is meant for people 55 and older, and it verifies ages, updating those records by survey at least once every two years (24 CFR 100.305 to 100.307). Housing for people 62 and older is stricter: every occupant must be 62 or older. So a 55+ label does not mean every resident is 55; the community’s own rules set who else may live in the home.

Colorado senior property tax exemption. An owner who is 65 or older on January 1 and has owned and lived in the home as a primary residence for at least 10 straight years can have 50% of the first $200,000 of actual value exempted, filed with the county assessor by July 15. A 2024 law (SB24-111) let a senior who already had the exemption move it to a new home for tax years 2025 and 2026; SB26-116 ends that portability starting with tax year 2027. If you are selling a long-held home to buy in a 55+ community, ask the county assessor how the exemption applies before you close.

Compare communities on the Colorado 55+ communities map and in the 55+ community rules and costs guide.

Paying for the move

• Sell first: you buy with cash from the sale and no second payment. See sell first or buy first when downsizing.
• Buy first: a bridge loan uses your current equity for the down payment; it costs interest and has qualifying rules.
• Pay cash, then mortgage later: delayed financing lets you take a mortgage after a cash purchase.
• Property tax deferral: Colorado lets homeowners 65 and older defer property taxes through the state program, applied for through the county treasurer.

See selling and buying a house at the same time in Colorado for the full comparison.

Sorting and moving without the rush

Give yourself more time than you think. Sort in three piles (keep, give or sell, discard), one room a day, starting with storage rooms. Measure the new home and place the furniture on paper first. Decide early who gets which pieces. If you hire a moving company, ask for a written in-home estimate and proof of its federal or Colorado registration. Read downsizing before a move, room by room for a checklist.

Talk it through first

A short call answers most of the order-of-operations questions. Call or text 303-955-4220. A live person answers.

The Kenna Group is a real estate group with Keller Williams Realty DTC, LLC (Keller Williams DTC), formerly known as Kenna Real Estate Group, serving Denver metro home buyers and sellers.

We are real estate agents, not tax advisers or loan officers. Confirm tax exemptions with your county assessor and loan terms with a lender.