You started out with a smaller starter home. Once you had built up some equity, and the kids began to get angry at having to share bunk beds, you moved to a larger home with room for everyone─you turned that starter home into one that was perfect for your larger family. Now that you are looking at retirement and those rooms are empty, does it make sense to stay in the larger family home?

Downsizing your home may be the right decision. Here are some things to consider while trying to decide if it is time to downsize your home.

 


How Much Does Your Home Really Cost?

The main reason to move to a smaller home is to reduce the costs you are spending on housing. While it is great to have the room for everyone to stay during the holidays, is it worth spending your retirement on heating and cooling rooms that spend most of the year empty?

Even if your home no longer has a mortgage payment, things like utilities, taxes and maintenance all start to add up for a larger home. If there is no real reason to continue paying those bills then why should you?

Start by adding up actual costs of your home and compare that to what you would be paying with a smaller one.

 

There is More to Home Than a House

Your home is more than just the walls that make it up. There are memories inside of those walls. You have friends and neighbors who care about you and whom you care for. If you are considering moving, you need to think about what you will be leaving behind.

Carefully consider the emotional cost of your move as well as the financial cost. If you find that moving away from friends, family and neighbors is more than you are willing to deal with then it is possible the time is not right.

 

Don’t Over-Estimate the Value of your Home

Your home is sure to net you a nice amount of money for your savings. Just don’t overestimate how much your retirement savings is going to increase once you have sold.

Selling off your big home and buying a smaller one can give a boost to your retirement accounts, but be realistic. Make sure that you are asking the right price and getting a fair one for the new home.

 

Run All the Numbers

If you look at what your house is appraised for and then look at only the sticker price on a new home, you are not being realistic. You need to run all of the numbers─closing costs, realtor fees, potential repairs, taxes, insurance and all the other things that add up when buying and selling a home.

 

Need Help with Elder Law Issues?

Do you need the services of expert elder law attorneys? Then contact Stano Law group today!