Deciding what to do with your home is tough when you are also downsizing. You already have so many other decisions and tasks on your plate, so the less effort you can put into this one, the more energy you will have to manage your big move. So how can you make deciding how to handle your home when downsizing less of a hassle? You can start by taking these steps to ensure that the final decision you make is the right one for your retirement.
Research Your Downsizing and New Home Costs
Are you downsizing to an assisted living facility? Assisted living facilities are designed for seniors who need help with daily activities, such as cooking meals or taking care of household chores, but who also want to maintain a certain level of independence. By doing your research and visiting a few options, you can easily see which facilities offer the services and amenities you need, as well as the costs for various local communities. For instance, the average monthly expenses for assisted living in San Diego fall between $1,500 and $11,150. You can factor these costs into your home decision but also look for other ways to pay for assisted living, so that you won’t feel rushed into a decision. Even if you are not moving into assisted living, there are other downsizing costs to think about as well.
Weigh All Options for Selling Your Current Home
After thinking about your downsizing expenses, you may have decided to sell your home. Selling before retirement is a common choice for seniors, and it can be the right choice for you if you need additional funds to supplement your retirement, cannot afford the upkeep on your current home, or just need some additional freedom from maintenance or expenses. If selling does make sense for your retirement, your next move will be to find ways to make this step in your downsizing process go as smoothly as possible. Thankfully, you can also check online to find helpful guides for selling your home. These guides will contain practical advice on how to find a real estate agent to help sell your home and how to stage your home so that it sells faster. What these guides don’t tell you, however, is how to handle the complicated emotions of parting ways with a home that is filled with memories and love. Processing those emotions can take time, but you can also help yourself stay positive by focusing on the freedoms downsizing will offer and all of the things you can look forward to in this next chapter of life.
Consider Whether Keeping Your Home Makes Sense
If you need to pay for assisted living expenses, then using home equity in other ways may be a more sound financial option than selling your home altogether. For example, you could look into a conversion mortgage loan to get the extra cash you need for assisted living or other downsizing expenses, while still holding onto your home. Since you will no longer be living in your home, you can also use some savvy home rental tips to earn some extra profits and further fund your downsizing move. Make sure you understand how leases, maintenance responsibilities, and rent payments work before you decide to rent out your home after downsizing to a smaller one. You may also want to hire a property manager to reduce the stress of being a landlord. Finally, know that you can always give your home away to children or loved ones if you do not need the money to make the downsizing process more affordable.
A part of your life has unfolded in your current home, so it makes sense that deciding what to do with it is a bit stressful. To keep that stress from overwhelming your downsizing move, you just need to focus on the positives and stay objective when making your final decision. What you decide now could impact your quality of life after you make your downsizing move.
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Article courtesy of Michael Longsdon.