Whether you’re retiring, downsizing or you’re helping your parents, there are a lot of things you need to think about. You’re dealing with the larger property that will no longer have an occupant, and you have to find a smaller one that fits within the budget. Retiring and downsizing is a lot different from moving – retirement is a new life phase, and there’s a lot to handle during the preparation process.
With so much on your plate, you want the process to be as safe, swift, and easy as possible. There are a few ways to approach the situation, but the simplest approach is usually the best one. Consider the budget you’re working with, the new properties you’re looking at, and the kind of property you’re leaving behind before you get moving.
Making Wise Financial Decisions
Income stops during retirement. Everything becomes fixed. Most retirees receive payments from social security, 401ks, IRAs, or other private retirement plans. This means retirees know what their monthly income is going to be, and they need to plan a lifestyle that is sustainable on that fixed income. Many retirees downsize to economize and reduce their living expenses, and any new property they purchase or rent needs to fit the bill.
What many savvy retirees choose to do is sell their current property in order to purchase a new one. If the house is completely or mostly paid off, the profits from the sale are often as substantial as the amount they have in retirement savings. By taking that money to purchase a new property outright, they eliminate a monthly mortgage expense. This makes it easier to budget month to month by eliminating a large bill.
Some retirees will sell their homes and use the profits to fund their stay in a care community. This makes end of life planning a lot easier, because a property won’t get caught up in probate and no one needs to figure out what to do with it once they’ve inherited it. Thinking ahead is wise, and it makes every day a little less complicated.
Finding a New Place to Live
If retired people decide that they’d like to continue to live independently, they generally want a smaller property without any stairs and several assistive features, such as hand rails in areas like bathrooms. Lower counters and shelves are easier to use, and wide hallways are easier to navigate. These are simple properties and they’re usually substantially less expensive that the typical family home.
If you plan to move away in your retirement, make sure you try your new location before you buy it. Places like Florida may look great on paper, but the hurricanes and the humidity might make it more than what you bargained for. After you sell your home, take some of the proceeds to go on a lengthy vacation to a place you’d like to live in before you start looking at purchasing property. You’ll be able to make a better decision regarding whether or not you’d actually like to live there for years to come.
Some retirees prefer to move in with family members and save the profits they made from selling their homes. It’s a personal decision, and some families feel more comfortable sticking together and looking out for each other.
Selling the Property
If your family has owned the property for a long time, it might be out of date. If you haven’t changed much in the years that you’ve lived there, that property may not fit the criteria that the modern buyer has already set. This can lead to the house sitting on the market for much longer than anyone would prefer. Even if the house is in great shape, people looking to move in will prefer some aesthetic changes.
As people age, they tend to stop maintaining their home the way they used to. The house may be long overdue for some important repairs. This can lead to significant damage over time, and damage is harder for buyers to overlook than outdated countertops. This can sometimes make selling difficult, and maybe even expensive.
Retired people often don’t want to deal with repair people or service providers coming in and out of their home. Renovating and repairing can get in the way. It’s a loud and messy process that disrupts both personal space and a quiet environment. If you don’t have the time, budget, or desire to deal with this process, you’ll need to find someone who is willing to purchase the property the way it is.
Who Will Buy My Home?
It’s normal for selling the property to be a little upsetting. People make memories in their homes, and when they move, they might feel as though they’re leaving those memories behind. Working with a respectful buyer who understands the situation makes the process a little better for everyone. Many retirees will find that working with a professional home buyer is a great solution.
Professional home buyers purchase properties in all conditions. They have cash, and they’re ready to make a fair offer for properties that are in any state – even run down. They’ll do all the work they need to do once the occupant moves out, so no one finds their life turned upside down with noisy hammers and saws in their kitchens.
It’s a clean, simplified process. The professionals know how to handle the paperwork, and they understand the needs of the retired person. Everything can be optimized for the seller, even if the seller needs a family member to help take charge of the process.
