Looking forward to retirement? It can be an exciting transition. Unfortunately, some people find themselves in tough circumstances due to unwise real estate moves. Here are some mistakes to avoid.
Don’t make impulsive decisions
If you’ve been planning to sell your current home to downsize or move to a new location, you’ve likely done research and given some thought to the idea. If not, though, a quick decision right after you retire could lead to disappointment or financial difficulty. Take time to explore all the factors that go into any move you’re considering. You can also discuss your ideas with a REALTOR®. He or she has experience helping many others who have made the same kinds of moves you’re now contemplating.
Remember that retirement isn’t the same as a vacation
You may have loved going to your favorite vacation spot each year and dreamed about one day retiring there. But vacationing in a place is not the same as living there. Before you make that move, spend time in the area and imagine it as your permanent home. Does it have the year-round amenities, weather, and lifestyle that work well for you? Also, can you afford the kind of home you want and the ongoing cost of living there?
Don’t forget your health and mobility
Whether you want to remain in your current home or sell it and buy something else, think about how your life could change as you age. Does your location provide access to the medical care you may need? Is the home itself navigable if you become less mobile? Planning for these possibilities now may save you from having to move again if your health declines.
Keep the costs in mind
Whether you’re thinking about buying a second home or selling your current house and buying something nicer, be sure to carefully run the numbers. It’s easy to underestimate all the costs of homeownership. Can you really afford the homeowners association fees, insurance, maintenance, and taxes without depleting your retirement money too quickly?
Have a plan for your sale proceeds
If you make a sizeable profit from downsizing, what will you do with that money? A new car and lavish vacations may be tempting, but soundly investing your proceeds may be just what you need to shore up your retirement nest egg.
Learn more about real estate transactions and search for a Bryan-College Station REALTOR® at bcsrealtor.com.
Patty Spiller, REALTOR®
2016 Association President