Deciding to sell your home after retiring is a difficult decision to make. By this time in most people’s life, they don’t want too much change. They have a lifestyle they are comfortable living in a community they love that supports them when they need it. Unfortunately, there comes a time when you have to choose what is best for you financially in the long run.
Here are few questions to ask yourself when debating whether to sell your home after you retire:
Do you have enough money saved?
Even if your home is paid off, weigh out your options. It adds up when you have to keep up with property taxes, maintenance fees, and homeowner’s insurance. If you find you will run into financial issues down the road, it might be best to sell your house. The money made from your house can be used to invest in your new life.
Is moving too expensive?
If you sell your home, you will make a nice profit to move, but make sure you are using that money wisely. People who decide to move after they retire often move into a smaller living space but purchase more amenities. If you’re going to purchase another home after retiring, make sure you factor in all of the expenses it takes. These can include: realtor fees, closing costs, moving expenses, and much more. It is important that before you make a quick decision, you need to stop and do some research and thinking. You don’t want to move into something that will put you in financial trouble down the road. Do some research on today’s prices and find a budget that makes you comfortable. See everything the community you’re interested in has to offer.
Have you thought about a reverse mortgage?
If you are age 62 or older and live in your home, you could qualify for a reverse mortgage. How this works is by using equity built in the home. You’re allowed to borrow money against your home in order to not have to repay the loan as long as you live there. The loan is based on the home’s value and your lender’s approval. This plan sets you up to receive payments as a single sum, line of credit, monthly payments or a combination of the three. These loans can be confusing, so make sure you pay close attention to any fees that will come up along the way. A reverse mortgage isn’t the right choice for every homeowner. But if you are looking to stay put in your current home, it could be the solution for you.
Remember these considerations:
- You want to make sure you can live comfortably during your years of retirement. You don’t want to run into financial issues along the way.
- Weigh out the benefits of staying versus moving.
- Unexpected finances can hit you at any time and you want to make sure you can afford them while maintaining your lifestyle.
At some point, you’ll likely have to pay for certain renovations in your home as you get older for safety and stability. As retirement approaches, do your research, see what you can afford, and make the best decision for you in the long run. Contact me if you have questions.
-Gary