Should I Sell My House When I Retire?
Retirement is an exciting and emotional time for most people. On one hand, it is completely full of new opportunities and much needed rest. On the other, it can be hard to leave behind a career and lose those daily connections. If you are planning to retire soon, you are probably wondering what comes next. Many people sell their homes at this point, which is why we wanted to explain why people do this and the benefits that it can offer.
Benefits of Selling Your Home in Your Early Retirement
Selling your home when you first retire can be a particularly advantageous decision to make depending on your plan. One of the biggest incentives that people find when making the decision to sell their homes is the increase in disposable income. If you own your home or have the ability to make a little extra by selling it, this might be beneficial to you. It is a good way to ensure that you have money in the bank during this big change.
Beyond simply making money, you can sell your home to save money. Homes, particularly older ones, require quite a bit of maintenance. While you might be able to handle it now, as time goes on, that might not be the case. Paying people to conduct maintenance on homes can be an expense that adds up very quickly. If you sell your home and move into a space that requires less, you can save quite a bit of money in the long-term.
Outside of financial benefits, selling your home can be particularly beneficial if it has a lot of space or stairs. Many retirees own homes with multiple floors. While they can be beneficial for a family, with time, they can become a hazard. As more time passes, you might realize that it would be nice to only have to clean a small space, or you might realize that you don’t like walking upstairs anymore. Consider these changes now to save yourself trouble later.
The Single Biggest Asset You Own is in Your Home. How Does That Fit Into Your Retirement Plan?
As you get older, there is simply no guarantee of where life will take you. In modern times, a surprising number of older Americans are falling into uncomfortable debt. It might be caused by a lack of preparation, difficulty managing a limited budget, or medical expenses. In the end, it can create a very real problem.
Entering into retirement with debt can also be dangerous. Most of us are not truly used to living on a highly limited income. With this change, we can run into quite a few problems. Living on a fixed wage that is lower than traditional income is a hard adjustment and might make it difficult to pay off debt. Some people sell their homes to pay off outstanding debt in order to ensure that the money that they have is enough. Debt is an expense that often grows faster than most people pay it off.
Should I Sell My Home and Rent When I Retire or Not?
Trading homeownership for renting is something that a lot more Americans are considering each and every year. There are benefits to this approach depending on your circumstances. First, consider whether you want to rent long-term, or if you simply want to rent while you wait to buy a new, cheaper home. Knowing this will help you to make a good plan.
It can be beneficial to sell for a high price and then rent until the home you want to buy is a little cheaper, but that doesn’t mean it is right for everyone. There is no guarantee that a house will be less expensive later, so weigh the potential risks.
Tips to Sell a House in Retirement
When you consider selling your home, you might be wondering if it is worth the effort. Fortunately, there are a few ways to effectively sell a home in retirement. The first way to guarantee success is to enter the market at a good time. Make sure that homes are selling for a good price in your area before you consider selling.
Another key focus is to make sure that you know what you stand to gain financially. Run the numbers and see what benefits there are for you up ahead. Consider how much you will make, how much you plan to spend, and how your savings looks. Knowing when the right time to sell is can make a big difference in your life.
Sell Your House and Rent in Retirement
Depending on your financial standing, you might not have to sell your home in order to by another. If that is the case, you might be considering renting it out—and that isn’t a bad idea! You can rent out your home to make extra money, but make sure to keep in mind the potential risks. Being a landlord takes a bit of practice and a lot of research. This can also be a great opportunity if you are risking a loss on your home by selling in the current market!
Choose a Reliable Real Estate Agent for Selling Your Home
Your real estate agent can make or break the outcome of the sale. With a great and passionate real estate agent, you can rest easy knowing that you will sell it for a good price point—and find a great replacement! Make sure that you take your time in selecting an agent and find one that you can truly trust. It can make all the difference for your sale.
Real estate can play a huge role in retirement planning, which is why you want to be smart about it. As you consider what this strategy has to offer, remember to weigh every risk and variable. While we cannot predict the future, we can often prepare for a good portion of it. If you are considering a sale, be sure to put in a little extra research work to find an option that truly works for you!