You did it! You finally retired. All those years of hard work and commuting are now a thing of the past. Your time is your own. Once retired, financial management is the primary concern because you often live on less income. Managing expenses becomes a priority. On the other hand, you have your lifestyle to consider. Perhaps it is the right time to sell the house. The market is strong and you may be in a great equity position.
Selling your house can have its advantages. It can provide an influx of cash that you can invest in something more liquid so it is readily available for unexpected expenses. A sudden illness can impact your wallet as well as your family. If you have a shortfall when it comes to covering your monthly costs in retirement, the equity in your home can help bridge the gap. Remember that even if you don’t have a mortgage, living in your home is seldom free. Maintenance of a house, particularly an older one, can surprise you with a bill at the most inconvenient time. If you have to replace your roof that can upset the balance of things financially.
Before you make any decisions to sell consider what you have ahead of you.
First and foremost you should know where you are going. Another City, another County, another State? Bigger, smaller, brighter, cozier? Closer to family …..or perhaps further away?
Secondly, you have to manage your move. Hire the movers, pack it up, realize there is just too much stuff, unpack, donate, repack and then unpack again once you get to the new place.
Then you have to tell everyone where you moved to. Change of address for your mail, credit cards, bank statements, driver licenses, auto insurance not to mention notifying your friends, family, and Amazon!
You know every creak, sound, and whirr your house makes. At times it is even comforting. Change is sometimes difficult. There are other options.
If you are having trouble parting ways with those walls that you have grown accustomed to, a sale Leaseback may be right for you. With a leaseback, you have the benefit of cashing out your equity and the advantage of not having to move. You have a closing similar to when you bought your house, any outstanding mortgage balance and standard closing costs are paid and you receive any proceeds. At closing, you sign a lease with the new owner and you become a renter. Major maintenance and repairs are handled by your Landlord and you can continue to enjoy your home.
Whatever decision you make, you should consult your financial professional to see if a Leaseback is right for you.