Planning to sell your home in retirement?

As you get older, you might be considering making changes to your living situation and selling your house. No matter if you’re thinking about heading for warmer weather, moving in with family or taking up residence at an assisted living facility, there’s still the topic of what you should do with your house. This article talks about when seniors should sell their home and gives eight tips for seniors selling their homes. Let’s get started!

When Should Seniors Sell Their House?

Like any big decision in life: it depends. The real estate market has been on a hot streak in recent years and home values have increased across the country. Selling now could mean netting a nice profit. If you need the cash for later life expenses or to buy your next house, it could be worth selling sooner than later.

But remember, selling your home after you’ve retired means you’ll have to find a new place to live and go through the process of moving. There will be costs of living at your next place whether you buy again or rent.

This issue comes up frequently when people ask: “Should you sell a home before or after moving into senior living?”

Few Tips for Seniors Selling their Homes

Consult with Your Financial Advisor and Family

A good place for seniors thinking about selling their real estate to start is by consulting with your financial advisor and family. You’ll want to discuss the tax implications of selling and determine how the sale of your home will impact your retirement planning.

It’s also a good idea to talk about this with your family and let them know what you’re thinking. Perhaps one of your children want to buy the property from you, or have you live with them while you rent out the property for additional income. You won’t know until you discuss with your family.

Put Your Plan Together

Having a plan is key to successfully navigating the sale of your house and moving as a senior. Create a timeline for when you plan on selling and the steps that need to be taken to make it happen. Be sure to factor in the time and cost required to buy or rent your next place.

Review your plan regularly and check off action items as you complete them. Keep it posted somewhere you see often like the refrigerator to remind yourself of what comes next. Don’t be afraid to get input on any changes or revisions to your plan from the people you trust; they might know something or someone who can help make the process easier and go more smoothly.

Hire a Good Real Estate Agent

It’s important that you hire the right real estate agent when selling your house. Working with the wrong real estate agent can cost you thousands of dollars and time you will never get back. A good real estate agent will price your home appropriately to maximize the selling price while ensuring the home will actually sell, not sit on the market for months.

The right professional will help you plan and coordinate all the pieces that go into a successful home sale and move. They will be by your side the entire way from start to finish. Take your time and interview several agents before hiring one, as you don’t want to rush it and select the wrong person for the job.

New location

While you might feel thrilled with your potential property value increase, remember, your entire community is experiencing the same market. And that means you may need to consider a new location if you’re thinking about saving money when downsizing your home in retirement.

Do your research on new neighbourhoods. Think carefully about whether you really want to leave your current community. After all, this means getting used to new amenities, navigating new streets, and often requires trying to find a new family doctor, dentist, and/or medical specialists.

Retirees and renting risk

If you’re thinking of selling your home after retirement to capitalize on a hot market then renting until the market cools, keep one thing in mind: the housing market is unpredictable.

It could be a few months, or even a few years before the market suits you. This means not only an additional move, but potential additional taxes on the tax-free equity you invest during the time you’re renting.

Moving costs

Moving isn’t cheap. Some of the costs you’ll need to budget for include:

Real estate agent fees fees
Legal fees
Movers
Utility disconnection and reconnections
Land Transfer Tax to purchase a new property

Estimate these costs carefully before making a final decision on selling your home when you retire.

The Bottom Line

Retirement in the 21st century resembles little of the bygone days. There was a time that charting the course for retirement typically involved moving to a community in a region conducive to an aging population. These communities that boomed in the past are now only one of many options. Seniors are more active and vibrant than ever before, and retirement is now the second chapter of life. Today’s seniors are influential, involved in the community and vital to society. Baby boomers (born 1946-1964) will be one of the largest demographic groups to enter their senior years in the next two decades. They are aptly described as the “silver tsunami” and will be a mighty force to be reckoned with. These boomers have shaped the world we know today and will continue to shape the future. No longer are their choices limited to moving in with family, care homes, or waiting for a spot at a nursing facility. These seniors maintain an active and healthy lifestyle and are taking charge of their lives.

Ready to sell or invest?

At Empower Estate agents, We provide a great experience, outstanding marketing & the best negotiations tactics to help our clients to achieve their property goals. One of our best real estate agents in South Western Sydney Sana Ullah, a well-experienced, trusted and reputed real estate agent in Sydney with his excellent marketing skills.

We believe, Buying or Selling a home is one of the biggest financial decisions of your life. That’s why finding a real estate agent with the experience to guide you through the process is key. Our extensive southwest western Sydney real estate market research and strategies will help you to sell your property at the highest value.

Disclaimers: Data provided in this article is of a general nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice.

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