As you open your Saturday morning Napa Valley Register, wine auction guests visiting the valley are enjoying the ultimate wine country experience and preparing for tonight’s auction at Meadowood Resort.

Cool nights and warm days during this first week of June provide this showcase opportunity for those from out of the area to explore this special place we call home.

So attractive is our climate and living conditions that many Napa residents have elected to sell their larger home and “right size” to a town home or smaller home that meets both their physical and budgetary needs. Once called “downsizing,” to “right size” captures the green movement and suggests the act of “smart thinking” instead of “settling.” With time becoming a valuable commodity to all generations, consumers are deciding that smaller space meets their needs and frees time and money for other activities.

It is known that “affordable housing” in the Napa Valley and Northern California has become an oxymoron. The decision to “right size” becomes a financial reality for first-time home owners because of the high cost of a home. For those selling their larger home, to “right size” has economic and functional benefits.   

Given the current return on money market rates and a rising stock market, more and more homeowners and prospective homebuyers are buying homes with less living space and less amenities. With the kids out of the house and an increase in the cost of living, more homeowners are concerned with bringing personal debt under control and minimizing long-term fixed debt.

By “right sizing,” homeowners can restructure their personal budget to free up money to reduce debt, increase retirement contributions, fund a college education or create an earlier mortgage payoff.

Moving to a state or area of greater affordability is one popular way to “right size.” But if you chose to stay local you have the alternatives to “buy down” by reducing the size or location of your current single family home or to locate a condominium of lesser price and maintenance. Planned communities offer a menu of amenities and are available in the North Bay from $450,000 depending on your particular needs. If you are older than 55, you can take your old tax base with you and make the move without a property tax increase. Also, you may be free of  gain tax on your sale if you meet the requirements of the current tax law regarding sale of residence.

By setting your sights on an area and type of property that you would like, you can create an after sale model including your net proceeds,  total purchase cost and exactly what your tax and loan situation would be after downsizing. Be sure to obtain all costs and consult a professional tax consultant on the differences between your personal residence, vacation home and an investment rental property.

For many there is a strong desire to be near family and friends and remain in the community they call home. Not satisfied to visit the Napa Valley one week a year, many people want a year-round Wine Country experience and open space. For these reasons, to “right size” may just be the right move for you.

Charles Bogue is a broker with Coldwell Banker Brokers of the Valley in Napa, where he provides real estate marketing services as the CB Team. Call 258-5221 or e-mail cbnapa@napanet.net