Thank you to our Guest Blogger Julia Aldrich from HomeLight.
It seems like just yesterday you were signing off on your dream home, the space where you would live out the rest of your days and potentially raise a family. While a house, especially a large one, may seem like a dream when you’re younger, it can be a hassle when you reach old age and you may ask yourself when should you sell your home before retirement?
Downsizing is a great option for many older individuals who face the issue of maintaining a house that they just don't need anymore. However, when is the right time to downsize? There is no perfect time, but there are a few indicators that show when the time for selling before retirement is prime.
1. You find yourself struggling to take care of the house.
If the house is becoming a burden to maintain and to clean, then you may want to consider selling it in the near future. This is especially true if you have no close relatives who can help with day-to-day chores.
Additionally, hiring a service to clean the house, tend to the landscape, or whatever else is a waste of money, especially when you have the option of selling and downsizing. This problem isn’t going to go away and will likely worsen.
2. The cost of housing in your area is on the upswing.
Selling your house may be a great investment where you can make a few dollars that you can use towards retirement. Many regions in the United States, including Scottsdale, are experiencing an upward trend of housing costs. In fact, the cost of housing here in Scottsdale has gone up about 6.6% in the past year.
Want to sell your home and retire? Research the best time to sell your house in Scottsdale or wherever you live, and, if you’re in doubt, contact a real estate agent who can help forecast when the best time to sell is.
3. You’ve paid off your mortgage and have earned equity on your home.
Sometimes, selling a home that still has a mortgage on it can be tricky. However, if you’ve long finished paying off the property and the house has gained equity, then you may want to consider selling.
A house that’s increased in value, for whatever reason, is a house worth selling because you’re bound to earn money from the sale. This is a great financial decision, especially for those who plan on retiring soon, and it’s one of many fantastic downsizing tips for seniors.
The best time to sell your house before retiring varies depending on your personal situation. Money, ease of access, and other factors contribute to the decision of when to sell.
For more on this topic or other financial planning guidance, contact Shanna Tingom of Heritage Financial Strategies.
Julia Aldrich is a content writer and real estate blogger for HomeLight.
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