Retirement involves a lot of changes. Most are aimed at making your retirement more comfortable. One change that many homeowners consider making is to downsize to a smaller primary home.
Selling your home and moving into a smaller space is a big jump however and before you take the plunge, there are a few questions you should ask yourself. Read on to discover a few of the main questions to consider before selling your house for retirement.
What’s your Motivation?
While numbers do play a big role in the decision to downsize, selling a home isn’t only about the money. Most people planning for retirement are looking for ways to make their lives easier – aka, to eliminate maintenance and housework.
In fact, a recent study by Merrill Lynch showed that “64% of seniors who downsized in retirement did so to lower their monthly housing costs, and 44% felt that a larger home is too much work.”
Also, if you do decide to sell your current home, you’re likely to be able to be choosier and get a home that’s perfect for you in this stage of life. If you have kids who have left the nest, you won’t have to consider which school district you’re in, and soon enough proximity to your workplace won’t matter either. This means your new dream home is more in reach than you might think.
Buying or Renting?
When you’re looking for a new home for your retirement years, your first thought will likely be to look at a smaller home or condo you can purchase. However, there are many cases in which renting, not buying, would be the wiser choice.
Repairs and maintenance are major headaches of homeownership – and it might just be a headache you’re willing to say goodbye to forever. Besides making things easier, renting a property also means your monthly expenses are predictable, as any problems with the properties will get passed over immediately to the landlord, rather than fall on your shoulders.
Even better – renting means you can change your mind. Making a big move is a big life change, and you might find there are things that you miss, which your new property does not have, or even things that it does have that you hardly ever use or would prefer to do without.
Cash, or Assets?
Downsizing usually results in a lot of savings – however, when you’re moving home, you’re likely to discover costs you hadn’t considered along the way.
Moving to a warmer climate, for example, might end with you investing in new furniture (and a new wardrobe). Even in a condo, you’ll want to make sure you understand any Homeowner’s Association costs you could be responsible for if your condo or neighborhood is making upgrades.
When you’re looking at a new property, be sure to include any upcoming health or lifestyle changes in your long term budget, so you’re sure to leave enough of the proceeds from your sale liquid, so you can cover any needs (or wants) during your retirement years.
Should you Fix Before you Sell?
If you’ve lived in your current home for a while, it’s likely to need some work before you can sell it on the open market. However, you might not have the funds – or the desire – to undertake a big renovation project prior to selling.
Instead of an open market sale, you might consider selling to a real estate investor who will buy your home for cash, in whatever state it’s in. It could save you the headache of fixing up, listing, and waiting for your home to get bought on the open market and get you off to a life of leisure faster.
Finding a Buyer for Your New Jersey Home
If you are retiring and want to sell your house fast, Rock Hammer Investments buys houses in and around Clifton (and other areas too!). Rock Hammer Investments does not list your house… we’re the ones buying your house. Because we pay cash, we’re able to close quickly… or on your schedule.