It’s common for retirees to think about downsizing every once in a while. Downsizing can bring people many benefits depending on why they want to do it, but those benefits only come to you if you know what you are doing.
Unfortunately, not all retirees know how to do that, so they end up making mistakes and losing a lot of money. Therefore, they need all the help they can get to undergo a successful downsize process.
Are you looking forward to downsizing? This is the page for you! Read on to learn everything you need to know about how to downsize if you are retired!
Analyze Why You Want to Retire
The first thing to do when you start thinking about downsizing is to understand why you want to do it. Retirees downsizing because they want to be closer to their families won’t go to the same kind of property as someone who wants to move out to cut expenses.
We recommend you ask yourself some questions before starting to downsize. The answer to that question will help you get the answer to the following one, which is: what kind of property do you want your new house to be?
As soon as you know why you want to downsize and the kind of place you want as your house, it’s time to think about the space you need to live comfortably and the sacrifices you are willing to make for the downsizing process.
Set Up a Budget for the Whole Process
One of the most important things to know before downsizing is that downsizing is expensive, so you need to save a lot of money for it. People can even take six months or a year to complete the downsizing process, and a significant part of that time is invested in getting the funds for it.
Even if you get a lot of money from selling your current house, you still have many expenses to cover. The first of them is real estate agent fees and the money for the house you want to buy.
Selling your house could also require you to make important repairs to get top dollar.
You also need to rent a moving truck or hire a moving company. After you cover all those expenses, you need to start thinking about taxes such as the capital gains tax.
We recommend you take some time to analyze if you have enough money to downsize or if you should wait until you get enough funds for it.
Sell Your House and Let Go of Your Old Belongings
Selling your previous house is the most difficult part of the process for some people due to the emotional factor of letting go of your home. Downsizing also means selling many of your old belongings, and you need to be ready to forget about items that may have been important to you in the past.
You may not have as much space as you have now in your future house, so you can’t take all your belongings with you. Take some time to get emotionally ready for the whole downsizing process and start thinking about the things you can keep and the ones you need to sell
The selling process is also complex due to how challenging it can be to find a decent deal for your old house. We recommend you hire a real estate agent who explains everything you need to know.
If you can’t find a decent deal for your house, you can contact Falcon Home Buyers to make an offer for it. You can get more information about what our company does by visiting falcon-homebuyers.com.
Search for a New Place
Searching for a new place also requires the help of a real estate agent, so make sure to find one you can trust. One of the most important parts of getting a new property is being realistic since you may not get a place that is exactly as you imagined.
This doesn’t mean you need to change what you wanted initially, but you should be willing to accept some changes.
Downsizing can be stressful and complex, but everything should be alright as long as you follow the steps we have mentioned and avoid common mistakes. Remember you need to have patience throughout the whole process, so don’t be afraid to wait some time to move out.
This article is meant for informational purposes only. We always encourage you to consult with a professional advisor regarding your situation.