Downsizing for retirement: a guide
Retirement can be an exhilarating time; however, it can also be a time of anxiety, frustration, and stress if financial resources are tight. Downsizing for retirement is one of the best ways to lower costs and live a more comfortable and happy retirement. Perhaps that is why the typical home seller in 2020 was 60 years old, according to the National Association of Realtors.
The benefits of downsizing your living space
Selling your existing house gives you a return on probably the greatest investment of your life—your house. Selling your house allows you to purchase or rent a smaller space, which is more affordable in several ways.
Purchasing a smaller house has many benefits. Consider how much you’ll save on lower homeowners insurance costs, cheaper utility bills, and more affordable property taxes. These savings add up and help fund your retirement. Downsizing to a smaller house also results in less maintenance, therefore freeing up more time to do more enjoyable things.
If you decide to rent rather than buy, you will no longer be bothered by having to mow grass, shovel snow, rake leaves, clean gutters, or make repairs to your home—or pay someone else to do these things. Leaky faucet? Maintenance is just a phone call away, and it is free.
Additionally, the profit you make after selling your house and relocating to a smaller residence will provide you with a financial cushion.
Downsizing for retirement: tips
Once you make the decision to downsize for retirement, you will need a plan of action to make your relocation go smoothly. When you know where your new living space will be, you will have a good idea of what furnishings will fit there.
Although it seems like a huge task to declutter for downsizing, it is manageable if you go through it methodically. Start by going through closets and small rooms and go through all items, deciding what should be kept, donated, sold, or given away. Place items in different piles to keep them organized. Progress to larger rooms and leave the garage for last, as it usually has the most odds and ends and random things.
How much does it cost to downsize?
The cost of downsizing depends largely on which option you use to sell your existing house.
1. Hire a real estate agent. Selling through a listing agent gives your house more exposure to potential buyers. Additionally, the real estate agent negotiates on your behalf and is an expert when it comes to the transaction itself. COST: A real estate agent takes a percentage of the profits from your sale as a commission, and you have to pay closing costs and other fees. If money is tight (or even if it is not), you may want to sell the house yourself or consider other options.
2. Sell the house yourself. Otherwise known as FSBO, “For Sale by Owner.” COST: This option saves you from paying fees and commission for your own listing agent, but you still have to pay two to three percent commission to the buyer’s agent. FSBO is a lot of work, from finding a photographer to shoot photos of your home, to learning all the ins and outs of the paperwork and legal process, to negotiation. Due to these drawbacks, only ten percent of house sales (2021) in the United States were FSBO.
3. Perhaps the very best (and most hassle-free) option to sell your house in Atlanta or the surrounding area is to use HomeVestors®. We have been in business in the Atlanta area since 2000, and we know the Atlanta housing market inside and out. We can give you a fair cash offer and close on your house fast. Even more importantly, we buy houses “as is.” There is no need to clean or make repairs. COST: Nothing.
Why sell to HomeVestors®?
HomeVestors is a network of local franchises that are independently owned and operated. We have a 95%* satisfaction rate, and our aim is to make the sale of your house as fast, easy, and hassle-free as possible. We can often give a free cash offer on the same day as our visit. If you accept our offer, we can close fast, sometimes in as little as three weeks. Call us today at 866-200-6475 for a free, no-obligation consultation.