Start with what your current home is worth
Many long-time owners in Cottonwood Heights and nearby cities have built up a lot of equity. In Cottonwood Heights, homes sold for an average of $925,319 from January 1 through October 6, 2026, based on MLS data. Knowing your number first tells you what you can buy next and how much you keep.
Decide what "smaller" means for you
- Single-level living: a rambler or a main-floor primary suite, so stairs are optional.
- Less yard: a townhome or patio home where the HOA handles snow and landscaping.
- Lock and leave: a condo if you travel or spend part of the year somewhere else.
- Close to what you use: grandkids, doctors, church, trailheads or TRAX.
Attached homes come with HOA dues. Ask what they cover (snow removal, roofs, exterior paint, water) and read the HOA's reserves and rules before you commit.
Sell first, buy first, or both at once
- Sell first: you know your exact budget, but you may need a short-term rental or a rent-back from your buyer.
- Buy first: you move once, but you need to qualify for both homes or use a bridge loan or home equity line.
- Contingent offer: you make your purchase depend on your sale. It works best when the seller has few other offers.
We help you pick the order based on your equity, your lender and how fast your home is likely to sell.
Tax rules worth knowing
- Capital gains exclusion: the IRS lets you exclude up to $250,000 of gain on your main home, or $500,000 if married filing jointly, if you owned and lived in it at least 2 of the last 5 years.
- Utah's residential exemption: a primary residence is taxed on 55% of its market value, because it gets a 45% exemption. Vacation homes and cabins do not qualify, so keeping your old home as a part-time getaway raises its property tax. A long-term rental still qualifies.
Talk to a tax professional about your own situation before you sell.
Salt Lake County property tax relief for older homeowners
Salt Lake County offers several programs. Here are the 2026 rules; apply with the County Treasurer by September 1 each year.
| Program | Who qualifies | Benefit |
|---|
| Circuit Breaker | Age 67 before Jan 1, 2027 (or a qualifying widow or widower); 2025 household income up to $44,221 | Tax credit of up to $1,412 on your main home |
| Indigent Abatement | Age 65 before Jan 1, 2027, or receiving Social Security Disability; income and assets generally up to $44,221 | Up to $1,412, no more than 50% of remaining tax |
| Senior Deferral | Age 75 before Jan 1, 2027; household income up to $88,442 | Defer current-year property taxes |
Downsizing timeline
- 6 to 12 months out: get a home value report and talk to your lender and tax professional
- 6 months out: decide sell-first, buy-first or contingent
- 3 to 6 months out: sort belongings into keep, gift, sell and donate
- 2 to 3 months out: tour single-level homes, townhomes and condos; review HOA documents
- 1 month out: book movers; plan furniture for the new floor plan
Right-size worksheet: list the rooms you use every week, your must-haves (single level, garage, yard), your monthly budget including HOA dues, and the neighborhoods on your short list.
Your next step
Start with your number. Request a free home value report, or call or text (385) 318-3259 to talk through timing.
