Removing yourself from public life-surrendering to old age bereft of the pressures of the modern world-is a reward for all that you have done in your younger years. Despite the things that you may have missed in your youth’s seemingly endless pursuit, living in quiet contemplation provides you perspective, resolve, and hopefully, closure. And what better place to do it than your own home?
But for some, staying at an emptier property, (as their kids might have already left it to build lives of their own) might only espouse despondency. This may leave them thinking that selling their home might be a good idea. From downsizing to living in a special home, retirees are led to various decisions that might not always reap the best benefits. If you are among those who are in deep contemplation on whether or not you should be letting go of your property, then this article is for you.
Should You Sell Your Home After You Retire?
It’s a valid question.
It is not without incident as you may have already heard that retirees are eligible for several economic benefits should they choose to put up their properties for sale. And while there is a sound basis for this, this is not always the case.
The first thing that retirees need to bear in mind is that selling their property depends wholly on the status of their finances. On top of that, knowing the actual value of their home is crucial. This entails knowing and understanding how their property is performing in the market or more so, how the housing market is faring at present. These factors contribute in determining if the conditions are ripe for a sale.
However, there are other pertinent factors that should contribute to the sale. That said, a thorough evaluation is necessary.
If you are retiring and thinking of selling your property, then this article is for you. This piece was written to help retirees determine the things to consider in the event that they would decide to sell their home.
Assessing The Situation
First things first. You need to look into your housing and financial situation before putting your house up for sale. For this, you will have to ask yourself a couple of questions. Here are the more important ones:
How much is the property’s worth exactly?
Now this might go both ways. You need to know if your home is actually worth the value you perceive it to have or if it is actually worth more. Either way, selling it might prove the best solution so you may benefit from your property after retiring.
Are you still paying the mortgage? If so, how much is your remaining balance?
Selling you home means having to pay your mortgage in full. If you have already done so within your years of residing in it, then you are entitled to more after-tax funds.
How does your home currently look like? What is its physical condition?
Your home’s current conditions might either attract or repel your intended audience. A well-maintained home (or at least a well-staged one) will win their attention. It becomes especially attractive if it is already ready for occupancy.
Apart from these, it is also important to determine:
The Real Estate market’s overall situation
Remember that the Federal Reserve controls the interest rates and how it affects the housing market. Knowing the monetary policy that governs selling homes is significant knowledge. In general, you should treat your property like any other asset: hold on to it until it reaches the highest possible rate in accordance with the behavior of the real estate market.
Your Planned Timeline for the Sale
Your timeline for selling your house is dependent on several factors. The most decisive ones are the urgency to sell it and your emotional preparedness to let it go completely. These being in the cards, you must know exactly when you are ready to part from your property.
More Info To Come
While these are all sound considerations, probably the most crucial one is your motivation in selling your property upon retirement. There are a number of reasons, all of which may be valid with consideration to their relevance to the retiree’s life.
For the second part of this feature, we will take a look at these motivations. The next segment will also go into the details of the benefits of selling your house to fund your retirement.