Since the empty nest sometimes arrives in conjunction with retirement options, there are some decisions to make about what to do with the family home. The answer is usually emotional and varies for individual situations, but usually involves asking some hard questions. Realtors are often a good resource when pondering the big question of whether to move and buy something smaller, since they have a good understanding of the current status of the real estate market.

Saratoga Realtor Kathy Stakey of Coldwell Banker sells an average of four to six homes a year for folks who are retiring out of the area.

"Primarily, most of the retirees I have assisted have moved closer to their children or grandchildren. In every situation they have made an exploratory trip to locate their new home and, upon returning, immediately began the marketing of their local residence. The ecstasy of being close to grandchildren makes the transition an easy one," said Stakey.

Realtor Joette Schenck of Alain Pinel Realtors in Los Gatos encourages her empty nester and retirement-age clients to make the decision to stay or move by considering the proximity to friends and family. She believes downsizing is a great idea, but for many people it works best if the smaller home is in a familiar setting.

"I've known several retired couples who have moved based primarily on the cost of living in the new area. There is no way to put monetary value on the ease of calling a longtime friend or family member when one is temporarily ill or needs a quick helping hand. If retirees are planning to move from a community in which they are established, they should do so only if they are moving to another area with a group of friends or family to whom they feel connected," said Schenck.

Another consideration when deciding whether to downsize or not is the cost and effort of upkeep and maintenance of a big house versus a smaller house, condo, townhome or retirement community. The appeal of living in a place where someone else mows the lawn needs to be balanced with what could become a dramatic change in lifestyle.

Taking an inventory of maintenance issues and evaluating any long-term repairs that may be needed on the existing home may make the decision easier, since repair costs can add up if a roof, heating system or other large component needs to be replaced anytime in the near future. When considering a new home, it is also advised to plan ahead for future needs.

"Be sure the new home is easy to take care of, with few or no stairs, and is near public transportation and the types of doctors and hospital that may be needed in the future," said Schenck.

Tom and Jan Gallagher, a Realtor couple with Coldwell Banker in Los Gatos and residents of nearby Rinconada Hills, feel that the guarded community is a good choice for retirees. They find that many residents have moved to Rinconada Hills, located in Los Gatos off Pollard and Quito roads, from Saratoga, Los Altos and Palo Alto.

"Many of the townhomes are over 2,000 square feet, so this is not a drastic downsize from their previous homes. Residents move here to stay close to their families in the area, perhaps maintain their present jobs or work as consultants. The environment allows them new companions, a secured environment, tennis, walking trails--all within the walled community," said Jan Gallagher.

Residents tend to move into Rinconada in their late 50s and early 60s, although the age group of residents varies from those in their 30s to those in their 80s. Gallagher finds many people take advantage of Proposition 90, which allows them to keep the same property tax base from a home they may have purchased 20-30 years ago. They can move to a townhome with the same taxes, providing a savings that could be as much as $2,000 to $3,000 per year.

"Making such a move at this time of their lives allows them an opportunity to buy a second home for their families to share in such places as Palm Desert or Tahoe. Without the maintenance of the single-family home in Saratoga, they can leave the guarded community without worry and feel safe that all is well at the home front," said Gallagher.

When weighing all the options about whether to stay in the family home or to move, finances become a big factor. While the house may be too big, it may still be the best choice to stay close to family, friends or medical facilities. And, for some folks, there may be just too many memories to leave behind.

As a result, home mortgage consultant Jimmy Kang with Wells Fargo in Menlo Park said, there has been an increase of calls regarding reverse mortgages from empty nesters or retirees who are looking to tap into the equity in their home.

"Reverse mortgages allow elderly homeowners to tap into their equity without ever having to make another payment. Thus, the homeowner can afford to live and stay in their present house and not have to worry about making a mortgage payment. In fact, some can even receive a steady flow of equity each month, such as an extra $300 to $500 per month, potentially tax-free," said Kang.

Whether to stay or go can be a difficult decision. Getting the facts and options from a Realtor and/or financial professional can help determine what to do when retirement or an empty nest prompts a reassessment of living arrangements and lifestyle.

Check out Silicon Valley Association of Realtors at www.silvar.org for listings for local Realtors or other industry professionals.