Are you downsizing in retirement? If so, you may still be trying to decide what to do with your old family home. It can be a tough decision and you should take your time making it.
As you weigh your options and come up with a plan, there are few things you may want to keep in mind to make the process of downsizing and transitioning to your new life easier. Here’s some key tips.
Take a Vacation to Test Drive New Cities
You wouldn’t buy a car without test driving it, so why move to a different city or neighborhood before giving it a spin? You can look into local vacation rentals to try out potential new areas before committing to buying a home there.
Try to find a vacation rental that’s near neighborhoods and activities you’re interested in. Vacation home rentals are a great way to live like a local and find the perfect new location for your retirement years.
Speaking of vacation rentals, this could also be an option for your current home. Turning your home into a short-term rental will provide you with additional retirement income while allowing you to hold onto the property for the time being.
Hire Professionals to Help With Downsizing
Whether you decide to sell or rent out the family home, you will most likely need to declutter and downsize all of the stuff inside of it. If you’ve been living in the home for several decades, this project can take on new meaning; don’t be surprised if some complicated emotions pop up.
Decluttering is one of the most important staging steps a seller can take, so this will be key if you are planning on listing your home before moving. You should speak with a realtor to get additional prep and staging recommendations. If you feel overwhelmed by the prospect of decluttering and downsizing on your own, you can also hire professionals to help.
For example, you could hire a moving company to assist with packing and relocating your belongings to the new home. You will want to budget for this carefully, so keep in mind that things like the moving distance, moving day preference, and decisions around sharing truck space with other families can all impact the final expense for hiring professional movers.
Put Any Wishes for The Home in Writing ASAP
Downsizing and decluttering can be tough because many retirees feel like they’re getting rid of memories, not just things. The same can be true for the family home, and you may feel like keeping it and passing it on to your children is the right choice for you. If so, you should work with an estate attorney to ensure these desires are clearly included in your will.
You should also speak with your attorney about the best way to handle a transfer of the property to loved ones while you are still around. If you own the home outright this may seem like a straightforward process, but take the wrong steps and your loved ones could face hefty taxes.
Things can get especially complicated if you plan on transferring the deed to your home to a loved one while still living in it. In this scenario, you’ll run into fewer issues with the IRS if you agree on a seller-financed sale and then pay your family member’s rent while remaining there.
The decision to downsize is very personal for seniors; so is deciding how to handle the place you’ve called home for decades. At the end of the day, you should do what’s best for you and the plans you have for your golden years. No matter what you decide, keep this guide in mind.
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