When the house buying process is about comfort and culture rather than square footage and yard space, some of the rules change. Here are 12 tips to help you find the right property for your current needs.
1. Do I have the right agent for my current needs?
Real estate agents specialize, and you want the dedicated expert in buying and selling smaller properties in good neighborhoods, not the high flyers who are trying to do business with borrowers who are trying to flip a property a week. You need an agent who will pay attention to your needs and not push you aside for some million dollar deal.
2. Do I want to buy or rent to own?
Choosing the type of financial arrangement that you want will narrow down your property search, speeding it up and reducing your stress at the same time. Deciding whether you want to buy or rent to own will also help you to choose the appropriate real estate agent.
3. Have I taken an inventory of what I want to keep?
Less floor space means that you may have to let some of your less precious items go. Get a sense of the property size that you want so that you can determine whether that standup bass or the 50 year old sewing machine that takes up half of a room needs to go into storage.
4. What about a garage sale?
Once you have determined the items that you want to keep, why not throw a garage sale so that you can earn a little money towards your move? One man’s trash is another man’s treasure, and you should not assume that other people will not be interested in the things that you want to leave behind.
5. Am I protecting my financial and personal records?
If you are moving into a smaller house, now is the best time to take stock of all of the old bank records and other personal documents that could cause a problem if the information on them were stolen. You will be dealing with a lot of paperwork during the buying process. Do yourself a favor: Invest in a professional shredding company to help you get rid of all of the old personal and financial records that you do not need before you move. ID thieves target retirees who are moving because of the possible confusion that moves cause. If you are unsure of whether to keep certain records, you can scan them into a digital drive before shredding them.
6. Should I throw a party?
Say goodbye to your old house in style, but use the party for another purpose as well. Maybe you have a friend that has always wanted that sundress that you are trying to get rid of. Declutter your house in preparation for your downsizing by inviting friends to take what they want from the inventory that you choose.
7. Should I try a homeowner’s association (HOA)?
An HOA can be a great idea for people who are looking for less responsibility in a property. Not only will the HOA bring much needed community support, but the HOA fee takes care of some of the maintenance that would otherwise fall on the homeowner.
8. How much do I want to spend?
As retirees, you are more likely to have different options for your financial arrangements. Deciding how much you want to spend will give you an idea of which of your assets you may want to use in order to pay for your new residence and save a great deal of money on the transaction.
9. How do I want to pay for this house?
Assuming that you have other large assets or equity in businesses or retirement accounts, you should take a look at your options with a certified financial planner. There are many ways to reduce your interest rates, fixed fees, and closing costs depending on how you negotiate your assets, your time, and your cash.
10. Where do I want to live?
Deciding on your location is of the utmost importance. Depending on your needs, you may only want to consider properties that are near family. This will affect the amount of money that you need to spend and also the neighborhood cultures that you will run into. You may also be able to take advantage of certain government sponsored entities (GSEs) such as the Rural Housing Program from the United States Department of Agriculture (USDA) depending on where you move.
11. Does my new house have the amenities that I want?
If you have a family pet that is inseparable, then you will need to choose a house and a community that is conducive to that contingency. Think of all of the other nuances in your life that you are not going to be able to let go of, and make sure that the communities you are researching agree with your tastes.
12. Does my new house reflect my lifestyle?
You will likely not be looking at fixer uppers as you downsize. You may also need a certain architecture depending on physical limitations as well. These amenities are built into some housing structures, and they can be very expensive to build into houses that do not already have them. Save yourself the hassle and ask your agent to look up properties that are completely turnkey for your individual needs.
2 Point Highlight
Do yourself a favor: Invest in a professional shredding company to help you get rid of all of the old personal and financial records that you do not need before you move.
Deciding how much you want to spend will give you an idea of which of your assets you may want to use in order to pay for your new residence and save a great deal of money on the transaction.
