Here are a few things you should and should not do when thinking about rightsizing.
Do start planning three to five years in advance.
If you’ve been in your home for 20, 30 or even 40 years, there are a lot of things you need to take care of before you can think about selling. Rooms filled with furniture, memories and heirlooms that you need to sort through. Your home HAS features that are outdated. It’s just reality. Does it need a facelift in order to maximize your selling price? MAYBE. But should you fix anything? Talk to a realtor first—it simply may not be worth it. Check this out… Here are 9 Renovation Projects, Ranked by Their Return on Investment according to a 2018 Consumer Housing Trends Report,
It takes time to sort through your belongings, heirlooms and valuables and decide what to offer your children and other relatives and make some needed updates and repairs to the structure and appliances within your home.
Do determine what is important to you in the home you want to live in next. (That’s where I come in).
How many bedrooms will you need? Do you want a stand-alone home or a condo? What kind of community do you want to live in? Will a ranch-style house, patio home, condo, apartment, 55-and-older community serve you best? What about a continuing care retirement community later? What is best suited for you now and in the future?
Do consider your geographic options.
What about taxes? Does it make sense for you live in a state with higher property and income taxes or should you move somewhere with low or no state taxes?
Determining where to live requires multiple considerations. Do you want to be close to family? Do you prefer a warmer or cooler climate?
Do understand all aspects of financial independence.
Before you make any decisions, who is working with you to help determine what actions make the most sense for your future? Financial, tax, real estate and mortgage advisors must be working together to ensure you’re getting well-rounded advice that will work best for you.
Don’t spend more money procrastinating.
Don’t throw everything into a storage unit to figure out later because you’re in a rush to sell. You’re only putting off the inevitable, adding to your expenses and increasing your workload in the future. Instead, start early so you can relax in retirement and focus on activities you’d rather be doing than cleaning out a storage unit.
Don’t underestimate the impact of aging.
Selling and moving is expensive. Living in a home with stairs and a big yard will catch up with you. Think to the future when making these decisions so you don’t have to go through the trouble or expense of moving again.
Don’t keep your plans a secret.
No matter how you think they’ll react, make sure your kids and other family members are aware of your plans so there are no surprises. Rightsizing may mean getting rid of their childhood home, so they may need time to prepare for it emotionally just like you do.
THE BIGGEST ONE OF ALL–Don’t overestimate your finances.
In retirement, you may not have the same disposable income as you do now. Banks ONLY lend to people that have the ability to repay. Before you declare you have more than enough and take a portion of your hard-earned money and lock it away where you can never use it make sure that is the best plan. Realize your limited access to money when you’re no longer earning a paycheck, so you don’t overestimate your spending lose the house you just bought. (More on that found here: http://affluentology.com/)
What we have and need now may not be the same as what we’ll need in the future. Thinking about rightsizing into a smaller home and living off different sources of income are big steps in your retirement planning and should be thought through thoroughly and with the help of professional advisors. Please click here and let’s find a time to talk: https://calendly.com/yestodd