3 Considerations for Retirees Downsizing

It is a fact that when we get to retirement, it becomes very difficult to actually "push the button" and want to downsize. You may acknowledge that staying in a large family home may not prove to be practical. It can be costly to upkeep, taxes continue to go up, etc if you remain where you are. If you open yourself up to downsizing you may find some financial benefits and enjoy less up keep of a larger home.

No doubt you worked very hard to get where you are and you are probably not only comfortable with your current house; it is your home. There is in fact an emotional attachment for many of us when we think of a place we have lived for a long time and/or raised children. I often tell my clients that it's a "box of air". Not only does it help me put it into perspective that it is "just a building" for myself, but that "home" can be defined outside of that particular space in the world. Personally speaking, I absolutely have fallen in love with my own house, so I do not write this article with a lack of sympathy. The day I sell my house; will be very hard day for me as well. I will think of memories, my gardens, and the things we did to make it special. I also have to remember that staying here forever will not always be what is best. These are not easy decisions and thoughts to muddle through.

There is no exact right time to make this decision; it is important to know the current state of the market before you decide to sell. These may be some factors you have not considered unless you too are a real estate agent! So without further to do; I'd like to give you a few more things to consider before you make your downsizing move. 

1. Prepare to compete with first-time home buyers.

Like most down-sizers, you probably picture yourself in something small enough to clean in one sweep, but large enough to entertain family and friends. And, best of all, a low list price.

Tough news. You’re not alone.

First time home buyers are jumping on starter homes. There’s a lot of competition out there when it comes to small, affordable homes.

Here’s how to beat out the competition of first-time home buyers:

• Sell your house before you make an offer on another home. Therefore, you can buy the house without waiting for your home to sell. (Remember - first time home buyers don't have houses to sell so they won't have that contingency and if you do end up in multiple offers they could win with this factor alone).
• Offer to pay for the home in all cash. The sale of your previous home could give you the leverage to make competitive offers, which will entice sellers to choose your offer over the rest.
• Work with a real estate agent who’s an expert negotiator. A top real estate agent can negotiate with sellers and get your offer to the top of the pile.

2. Location

I don't mean if you want to retire somewhere warm or down the road from grandkids, though this should be the major consideration before making any purchase! (And in all sincerity if you don't know where you want to go then maybe renting is a better option while you figure this out). 

But what I was really eluding to -  Do you plan to travel? Maybe you want a short trip to the airport. Or you need to be near a major freeway. If you are staying in Minnesota; do you want to be near restaurants and shopping? Go beyond whether you want to live in the city, suburbs, or small town living. Again, very important decisions. But, what else do you need or what will you need soon? I have had people express interest in being near medical facilities, certain family members or maybe you no longer wish to own a car.

Once you decide if you are staying in Minnesota, going East, moving down South...go a little bit deeper into what you need. I have an excellent priority checklist I can share with you. Email me at erica@iHeartMplsHomes.com if you would like a copy. It connects with my Smart Home Buyer Book that you can download for free. 

3. Time to Purge

One of the most eye-opening aspects of becoming a real estate agent was learning just how much junk we all have. It's so overwhelming. Whether I am observing a home sale from a divorce or an estate sale...or even a family that has lived in a house for less than a few years. Where does all of this stuff come from!? 

So let me put it simply. You probably have the same issue as everyone else and while I am not going to use this space to discuss how you can let go of personal possessions.... Do start making piles! Make your pile for donate, discard, or take with you. Even if you aren't making a move this season. Get ahead of this and trust me; you are very likely underestimating how much work this will be. (One of the biggest comments I hear from home sellers is about this topic). If you are overwhelmed there are companies that can help. Let me know if you need a referral. Some help with organization. Some physically will pack up the home. 

I am going to stop myself here. Because today. I just finished a short book/ guide that you can download for free.

It's called 'Things to Consider Before Downsizing your Home'.

I would love to share a copy with you. No strings attached. Just click here for the booklet. I think that this is a very important topic whether you are at your retirement chapter or there is another reason in life a person wants a more simple lifestyle. It's emotional and can't be underestimated that it's important to make these decisions with "eyes wide open". I'd love to be a resource to you, so it goes without saying that whether you are downsizing and staying in the Twin Cities or leaving us for warmer weather; please let me know if I can be of service!