Downsizing & Empty Nest
Transitions
Posted: September 13, 2017 by Cathy Miller
Retirement is one of life's biggest stages and transitions. Every aspect of life, from daily routines to personal goals to financial situations, will undergo a huge change. Your monthly income may be reduced and among other priorities, you may need to find ways to cut expenses or generate cash.
Thoughts about simplifying one's life are top of mind. One or two people living in a large home with lots of bedrooms for children who have since moved on to their own homes is impractical. You don't need all of the space anymore, and as you get older, you'll need it even less. Apart from all the unused space, management of such a home requires spending money. There are a number of reasons why many retirees downsize their homes. Of course, moving to a different part of town or the country will probably involve a home sale and the purchase of something more practical in your new location. But even if you don't plan to relocate, keeping the house you've lived in throughout your working life may no longer make sense.
Most importantly, downsizing saves money. If you plan to stay in the same area, rushing the sale of your house is not necessary as you can wait for the right buyer at the right price. You don't need to jump at the first offer if it's significantly below what you want to get. You can simultaneously be looking for a more suitable house for you to purchase. If you need to generate cash from your swap, let your agent, Cathy Miller, know how much cash you need and she will know how aggressively to price your home.
Downsizing will save money on utility bills. A big house cost more to heat in the winter and keep cool in the summer. Bigger homes have more electrical fixtures and more televisions with cable hook ups. Bigger homes have bigger yards that cost more to keep up. And if your home is older, it may need repairs and you may need to make at least a few repairs to make the house more suitable to sell.
The biggest issue with downsizing, even if you are just moving around the block, is dealing with your possessions. If you have been in your current home for decades, it's probably full of a lifetime's worth of furniture, appliances, books, clothes, and knickknacks. You will need to decide what is needed in your new place, at least as far as furniture and major appliances are concerned. Even if you don't know exactly where you are moving to yet, you may at least have some idea of how many rooms you will have and how much of your furniture will fit there.
Start sorting, room by room, closet my closet, shelf by shelf. Will your children want or need any of the excess? Are there valuable pieces that you can sell online at Craigslist or eBay? It may be less stressful to donate items to Cedar Lake Lodge, St. Vincent Depaul or Goodwill and take a tax write off. If you have a house full of valuables that call for a sale event that is more highbrow than a yard sale, hire a specialist. In that case, I recommend a company called Everything But The House.
Once you have shed a lifetime's worth of accumulated baggage and have moved into your smaller home, you will be ready to start enjoying your retirement in style!
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