While your idea of retirement might include sitting quietly at home and opening a new book each day, selling your home upon retirement might be a better option. Though the idea of retirement seems quite exciting at first, it can also be tremendously stressful at times. Setting aside enough money to live off for the remainder of life poses enough challenge as it is, and meeting that goal can be an even bigger challenge. But what if you can't save that much? What if it's not enough? With so many factors to consider for retirement, you might need more money than you think. Selling a home might be the best option for retired people who need some extra cash to live off of. Or, for retirees who aren't as able-bodied as they once were, selling their homes might make sense when senior apartments or assisted living centers become more suitable. If you are wondering if you should sell your home at the time of retirement, consider these factors.
If your home is not paid off by the time of retirement, it might be time to consider selling it to pay it off. Paying your mortgage month-to-month can cost too much over time, especially when there's no more money coming in. If you really want your own home, you might even consider buying a smaller home instead. You'll not only pay less per month, but you'll save on maintenance costs per month.And if your mortgage is already paid off, selling your home will be easier and will net you even more cash since you won't have to pay off your mortgage.
Another reason to consider selling your home is to avoid the costs of home maintenance. By selling your home and renting an apartment instead, you'll save a ton on home repairs that you would otherwise need to take care of on your own. While renting, you'll no longer need to worry about trimming the hedges or mowing the lawn. Likewise, you won't have to worry about when your home appliances fail. The landlord will also handle and emergency repairs like gas leaks or flooding, which are both things nobody wants to worry about when retiring. Older adults are much more vulnerable to medical emergencies that can end up costing thousands of dollars even with insurance. For this reason, many retirees prefer the peace-of-mind offered by living in apartments, where residents are never surprised by sudden repair bills or other costs.
Selling your home in favor of renting or buying a smaller home in an area where stores and activities are close by may be a good idea as well. Since retirees no longer need to worry about being close to work or school, they can live where all their other needs are met. If supermarkets, doctor's offices and shopping centers are close by, you won't have to drive long distances to get there, so you'll save on a ton on gas, especially if you use public transportation. Or, perhaps you might want to live closer to other family members? This is especially important for seniors who no longer feel comfortable driving.
Retirees who cannot care for themselves may need house cleaning services, at-home nursing care, gardening services and other such services. The cost of these services -- which may be necessary for retirees who have difficulty getting around -- can be quite expensive over time. If you'll require these expenses for the rest of your life, selling your home can help you pay for them in the end. When taking all these factors into consideration, the right choice might seem a bit clearer.