Less house, on your terms.
Selling the family home and buying something smaller is two decisions at once. Here's how to sequence it, what you'll keep after taxes, and the Iowa property tax breaks you may be leaving on the table.
What you keep, and what's next.
Everything else follows from two figures: what you'll net from the home you're in, and what the next one will really cost each month with taxes, insurance and any association dues.
Every line between the sale price and what lands in your account, including Iowa's property tax proration.
See the net sheet → BuyingThe next paymentMonthly cost with taxes and insurance, whether you finance part of it or pay cash.
Run my payment → TimingSell, buy, move onceSell first, buy first or both together, and the tools that bridge the gap.
Read the guide →Most of the gain is yours.
If you've owned and lived in the home for 2 of the last 5 years, you can usually exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly. Iowa starts from your federal taxable income, so gain excluded federally isn't taxed by Iowa either.
Iowa's retirement income exclusion for people 55 and older covers pensions, IRAs and similar income. It doesn't cover home sale gains, so if you've owned a long time and expect a gain above the exclusion, talk to your tax preparer before you list.
Sources: IRS Tax Topic 701 (updated Sept. 2026); Iowa Department of Revenue, IRC conformity and retirement income guidance. Not tax advice.
File these on the next home.
These don't move with you. When you buy the next home, you file again for that address. Inside Cedar Rapids, file with the Cedar Rapids City Assessor. In Marion, Hiawatha, Ely and the rest of the county, file with the Linn County Assessor.
File by July 1 after you move in. A 2026 law turns the old homestead credit into an exemption of 10% of taxable value (at least $5,500, at most $20,000), starting with taxes paid in September 2027.
An additional $6,500 of taxable value is exempt once you're 65. It's filed once, on the same form as the homestead exemption, by July 1, and carries forward while you qualify.
For homeowners 65 and older (or totally disabled) with household income under the state limit: $26,219 for 2025 claims. It pays a share of your property taxes on a sliding scale. If you're 70 or older and under a higher income limit, it can freeze your tax at the first year you claimed it. File with the Linn County Treasurer between Jan. 1 and June 1, every year.
Sources: Iowa Department of Revenue (homestead exemption page, June 2026; Elderly and Disabled Property Tax Credit page and 2025 claim form); Linn County. Limits change each year. This is general information, not tax advice.
What to look for this time.
The best downsize is the home you won't have to leave again. A few things to weigh before you fall for the view.
A bedroom and full bath on the main floor, and as few steps at the entry as you can find. Stairs are easy to ignore at 60 and hard to live with at 80.
Condos and townhomes trade yard work for monthly dues. Read what the dues cover, how much the association has saved, and any planned special assessments.
Doctors, groceries, friends and family. Fifteen minutes saved on errands matters more every year.
Use your sale proceeds and skip the mortgage. Simple, but it ties up money you might want liquid. Compare it against a small loan.
Put part of your proceeds down and finance the rest. You keep a cushion, and the payment is your tradeoff.
A reverse mortgage used to buy your next home. You put a large down payment toward the purchase, the reverse mortgage covers the rest, and there's no monthly mortgage payment. You still pay taxes and insurance and keep up the home, and counseling is required first. Talk to a lender who offers them before you shop.
Sources: HUD and the Consumer Financial Protection Bureau on HECM for Purchase. Not financial advice.
What downsizers ask me.
Should I sell first or buy first?
It depends on whether you can buy without your sale proceeds. If you can, buying first means one move and no rush. If you can't, a rent-back after your sale gives you time. We decide on the first call.
Should I fix up the house before I sell?
Usually less than you think. Fix what an inspector would flag, clean and clear it out, and skip the remodel. The selling guide has the full list.
What do I do with 30 years of stuff?
Start early, one room at a time, and decide what's moving before you list. The listing photos go better, and so does the move.
Will my property taxes go down?
On a smaller, lower-valued home, usually. The rate depends on the city and school district, so I pull the actual bill for any home you're considering.
Start with what you'd keep.
The first call is free, by phone or over coffee somewhere in the Cedar Rapids area. You'll leave with your likely net, a budget for the next home and the order to do it in.