3 Things You Should Consider When Downsizing in Your Golden Years

For the most part, seniors see their twilight years as a time of uncertainty and scary changes. However, it’s also a time for new opportunities. Changes can be made less scary and more geared toward improving your lifestyle, while uncertainties can be alleviated with a good game plan. This can be accomplished with downsizing. 

Now, downsizing can be quite an emotional ordeal, especially if you are unprepared. As such, the key to making downsizing easier and less stressful is to break down what seems to be a gargantuan task into the following small-sized components.

Your finances 

Of the many perks of downsizing, the financial benefits are probably the most welcome. As you retire and transition toward a fixed income, you will find that you really don’t want to be saddled by too many bills and expenses. Not only that, but 

you may also want to redirect your income into more worthwhile pursuits like travel and recreation.

 With these in mind, your downsizing efforts should start with an honest assessment of your financial situation and making adjustments accordingly.

Your home 

There’s little doubt that your home demands most of your income, not to mention energy. With utility bills, maintenance costs, property taxes, and other myriad expenses to consider, continuing to live in your current home may turn out to be more trouble than it’s worth.

It’s no wonder, therefore, that many seniors are choosing to sell their homes in favor of downsizing. And with homes in Santee currently selling at a median price of $598,500 this could prove to be a lucrative choice that not only guarantees that you’re well taken care of in your golden years, but that you also get to enjoy them.

 Another option that you should consider when you’re downsizing is to rent out your home. This can also be quite lucrative as it generates earnings that you can rely on to supplement your fixed income in retirement. The downside is life as a landlord can be quite demanding. You have to find and vet tenants, stay on top of maintenance, and make sure that mortgage payments and property dues are up-to-date. There are, of course, ways to make this easier on you, but they invariably translate to additional costs. So with such concerns in mind, renting out your home, although viable, is definitely not an option for everyone. 

Of course, you can always pass on the family home to your children. However, this option also comes with its own risks. In fact, it’s important to do your due diligence before handing over the deed and the keys to a loved one as this very act could lead to a host of tax issues. There are ways around it, though, so make sure that you know all your options before making this decision.

Your possessions

Making the decision to downsize and leave your home in favor of a more cost-effective and senior-accessible one inevitably means parting with the many possessions that you’ve accumulated throughout your lifetime and the memories associated with them. For many seniors, letting go can be the most difficult part, especially on an emotional level, which is why it’s important to see this not as a necessary evil, but as a meaningful step toward what could be the best years of your life.

You can make this process less stressful by not rushing yourself and tackling the task systematically. As a rule of thumb, anything that hasn’t been used in the last year or so can be given away or sold, while heirlooms and mementos can be passed on to family members. Of course, don’t forget to keep the most special ones for yourself to take with you to your new home.

Remember that when you downsize, you are essentially closing a chapter of your life. Yes, there is room for grief, but know that there’s even more room for growth. So take it one step at a time, slowly but surely, and before long, you’ll be enjoying the life that’s waiting for you.

Compliments of Jim Vogel

Image via Unsplash

Your No Fuss Resource Guide to Downsizing Your Home

 

Moving to a smaller home can free up more time to enjoy your retirement. Before you can kick up your feet you’ll need to manage your downsizing move from start to finish. This includes figuring out how to find a home that fits you and figuring out what to do with all of the things that just won’t fit into that new home. If you need some help planning your move, this handy list of resources can keep you from feeling like you’re in over your head.

 Finding Your Perfect Retirement Home

Before you start planning your move, you need to find your perfect new home.

 

●     Check out the tips from the Talkin Real Estate blog first.

●     Then find yourself a reliable and trustworthy real estate agent.

●     You should also determine how much a new home is affordable for you.

●     Make sure your agent knows you want to age in place.

●     Or maybe you’d prefer to downsize into a senior community.

 

Planning Your Safe and Stress-Free Move

Moving can be stressful and even hazardous but not with the right planning.

 

●     You may also want to print out a detailed moving checklist.

●     Know where to get free or low-cost moving supplies, like boxes.

●     Also know how to pack your stuff so it doesn’t get broken or lost.

●     Budget for professionals if you want to save yourself the hassle and stress of moving day.

●     Or you could even think about hiring a senior move manager.

 

Decluttering and Organizing Your Belongings

Decluttering can feel overwhelming so try to start this project ASAP.

 

●     Take it room-by-room when you are decluttering your home.

●     But know that decluttering can be an emotional process.

●     You may need help letting go of more sentimental clutter.

●     Then you can toss out or possibly donate items you don’t need.

●     A storage unit can help keep your new home from getting cluttered.

 

A smaller home doesn’t have to limit your retirement. In fact, it should give you more freedom and flexibility. Just be sure to use this guide to keep your move organized and stress-free.

 

Photo Credit: Rawpixel

Compliments of Andrea Needham

Avoid Foreclosure--There is Another Way

The COVID-19 Pandemic has thrown many people into financial disaster with job loss and businesses going under.  While the late mortgage notices pile up, many homeowners bury their heads in the ground.  In denial, they allow their homes to go into foreclosure. There is another way.  Home owners need to stand up during the hard time, taking the bull by the horns.   

First, owners should be talking to their lenders explaining their situation.  Those impacted by COVID-19 should check with their cities to apply for CARES ACT funds provided by the state to prevent rental eviction and mortgage foreclosure.  For the City of Santee and El Cajon check out this website for more information.  

At this time, most people have equity in their homes due to the rise in home prices from the limited home inventory.   In this case, it is best to cut your losses and sell rather than let the bank foreclose and lose the remaining equity. Put the proceeds in savings and save for when things are better financially.  There will come a time to buy again. 

But then there are some out there, where the owner owes more on the house then the home is worth.  Known as a "Short Sale".  A short sale should be called a Short Pay.  The bank loses the difference between what you still owe and what it sells for.  Those facing Short Sales and Foreclosures should always consult their lawyers and accountants before listing their homes because there could be tax consequences. 

While they are called "Short Sales", it is the furthest thing from a short process.  It takes anywhere from  6 weeks to 6 months once an offer is accepted.  After the seller provides proof of their financial hardship which includes a letter of hardship explaining why they can't make their payments anymore, as well as the bank reviews their bank statements, tax returns, and retirement accounts.  Once the bank determines they will allow the short sale, they will order an appraisal to insure the agreed upon offer is reasonable.  

Even though a short sale and foreclosures impact your credit scores, in reality, the short sale shows creditors that the seller took responsibility for the problem and it will impact your credit for normally 2 years versus foreclosures impacting your credit for up to 7 years.  These time frames vary depending on the lender, credit score, down payment, and the type of loan. 

"According to FICO, if your credit score is 680, a foreclosure will drop your credit score on average to 85 to 105 points.  If your credit score is excellent at 780, a foreclosure will drop your score by 140 to 160 points.  In other words, the higher your credit score the more it will get smashed!" says financialsamurai.com

 

The last thing people in financial crisis want to do is spend more money on a sinking ship. However, when selling a short sale it can actually get multiple offers when the home is clean and free of clutter. When there is trash thrown about and the weeds are growing out of control, buyers have a hard time seeing the potential.  Hire a qualified agent who has handled short sales before and who you can trust to guide you through the emotional and challenging process.

--Virginia Hall

    San Diego East Foothills Keller Williams Realty

    (619) 258-8585

For more information go to  VirginiaHall.com

How to Keep Your Home Primed for Last-Minute House Hunters

                                Image courtesy of Unsplash

When you put your home on the market, you want to avoid turning away house hunters whenever possible. You just never know when that last-minute call will be the one you’ve been waiting for. Here’s how to keep your house in prime condition so you never have to turn away a tour.

Pare Down Belongings

If you are struggling to figure out how, exactly, to clean and declutter, these links have some practical advice that can get you cleared out in no time.

●    Declutter every nook and cranny

●    Part ways with extra stuff

●    Store surplus necessities discreetly

●    Move boxes and extra furniture offsite

Set a Great Stage

Your home’s appearance is more important than you might think. From making it a welcoming environment to showcasing it from the street, this is how to set the stage for selling success.

●    Create a welcoming atmosphere

●    Give kids’ rooms special attention

●    Don’t ignore curb appeal

●    Hire out for a deep clean

Address Daily Details

Unless your home sells on day one, you have to pay special attention to how it looks until

you’ve accepted an offer. Here are some ways to do just that without adding stress and strain to

your day.

●    Gather tools for quick tidy-ups

●    Review the big picture

●    Get your kids involved

●    Clean before you walk out the door

Getting a house ready to sell can be nerve-wracking. However, with a few smart strategies, you can take last-minute calls in stride. Do some paring down, clean thoroughly, and tidy up daily, and soon you’ll get that offer you’ve been waiting for!

Compliments of Alice Robertson

How to Sell a House and be Safe-- COVID-19 Precautions

Selling a home during this challenging time, may seem daunting but the California of Realtors (C.A.R.) has outlined steps to protect you and your buyer while selling your home. 

C.A.R. has released two new forms to help clarify how to protect the seller and buyer: One is a Listing Agreement Coronavirus  Addendum or Amendment (RLA-CAA) for sellers and listing agents to sign, and the other is a Property Viewing Advisory and Declaration (PEAD) that is to be given to and signed by the seller, buyer, agents and anyone else who will be entering a property.

Seller should expect Buyers and their should follow the steps that were previously discussed agents in How to Safely Buy a House--COVID-19 Precautions.   Other guidelines that Sellers should follow: 

1. The written approval of the seller for all pre-marketing activities must be obtained by the listing agent. No third party can enter the property if they have not agreed to follow CDC, Center of Disease Control and Prevention, Guidelines. Even for contractors and workers, gloves and other protective gear are mandated, as is the declaration that they are asymptomatic and agree to follow the CDC guidelines.
2. Listing presentations and staging should be done virtually.
3. Virtual photography using a video-based system. Keep in mind that the usual copyright  considerations governing photographic images still apply.
4. Shoe covers, gloves and hand sanitizer should be located near the front door.  If hand sanitizer is not available, soap and water at a designated sink should be made available. 
5. Sellers should be gone during all showing appointments that are scheduled for individual parties, one set of clients at a time. 
6. No open houses, broker tours or broker previews should be held. A virtual open house or showing scheduled for a specific time with the Seller's permission, can be scheduled; however, no one will be present other than the listing agent holding the virtual open house.
7. REALTORS® CANNOT BE conducting any face-to-face marketing during the COVID-19 related declaration of emergency.
8. Flyers will be posted on the on-line multiple listing service.  No paper flyers at property.
9. After each showing, the agent or seller should clean doorknobs and counter tops with disinfectant wipes and follow the CDC's Cleaning & Disinfecting Guide recommendations.
10. All negotiations and discussion regarding the property will be done by phone or virtually.
11. All transaction paperwork will be done by electronic signature systems. 
12. For HOAs, he seller should obtain a copy of any new rules that may govern showings of common areas or entry to the property.

Using these COVID-19 precautions, sellers should be able to safely show and sell their home. 

Written by 
Virginia Hall, CRS, ABR, CNE, SFR
Keller Williams Realty
619.258.8585