Downsizing For Your Retirement.

Thinking of Retiring?
Thinking of Retiring?

Downsizing before or during retirement is a smart decision for seniors. It means less upkeep and maintenance with a potentially less expensive monthly payment. Make downsizing easy by following these tips from Mel Foster Co.

  1. Work with a Realtor®

Working with an experienced Realtor® is the best decision you can make when looking to downsize. The seller pays the commission so you have nothing to lose by utilizing professional resources. A Realtor® can help you determine financial qualification, size needed and available listings. Condo purchasing contracts also are very different from other types of residence. Even with out of town listings, Mel Foster Co. has relocation specialists to help you find your new home anywhere in the world.

  1. Determine what Property you Need

You should communicate with your real estate agent to let them know exactly what you’re expecting from your new home. Are you looking for a high-rise, a cozy one story house or a small home with a spacious garden? Have an idea of your needs before you talk with your real estate agent so they can find you a property to exceed expectations.

  1. Find Sufficient Storage Options

The smaller space is a huge plus for many retirees. It means less upkeep and maintenance, but also less storage. If you have furniture, photo albums or decorations, you may want to consider renting a storage locker. They’re inexpensive and can be climate controlled so you don’t need to worry about damage to your more fragile items. Talk with your real estate agent to see if there are any storage options near the properties you’re considering.

  1. Consider a Rental

If you’re concerned about a long-term commitment, consider renting. It’s a great way to see if you enjoy the location in a new area. You can decide later with your real estate agent if you want to find a more permanent home. It’s often more cost efficient to rent, and most maintenance is taken care of by the landlord. It can help you determine what size home you need, and the lifestyle changes that come with downsizing.

Find an agent with local or national experience to find a home where you can comfortably downsize.

Is a Reverse Mortgage Right for You?

Is a reverse mortgage right for you?
Is a reverse mortgage right for you?

Reverse mortgages are a great way for senior homeowners to generate a steady flow of income, or receive an immediate lump sum for expenses, if you qualify and determine this is the right option for you.

A reverse mortgage works exactly how it sounds. The bank pays you an upfront lump sum, monthly distributions, a credit line or a combination of all three. The upside is you don’t have to pay back the interest accumulated on the loan during your lifetime, unless you move out of the house.

To qualify, you must be at least 62 years old and own, or nearly own, a house. You also have to make sure your house is in good condition and have no other outstanding loans. If you meet these criteria, a reverse mortgage might work for you.

Be sure to consider the entirety of costs involved in getting into the agreement. Interest is accumulated over the course of the agreement, and when you move or pass away, interest is owed to the bank. The interest is deducted from your estate.

If you’re planning on leaving a substantial amount of money from your estate to friends or relatives, consider how much is going to be deducted due to the reverse mortgage interest payment.

Ask a preferred mortgage lender at University of Iowa Community Credit Union (UICCU) about a reverse mortgage, or contact the trusted lender of your choice.

Why You Need A Real Estate Guru.

Are you in the market to buy or sell a home? It is important that you consider working with a licensed Real Estate Professional in order to save yourself time, money, and hassle. There can be a lot of confusion and guesswork when you are out there navigating the market on your own. Here are a few reasons why it’s in your best interest to work with a Real Estate Professional.

Negotiations

From the appraiser, to the home inspector, to the buyer, there are nearly a dozen people that you will have to answer to while selling your home. Let an agent do this busywork for you. Negotiating effectively can mean thousands more saved or earned.

Paperwork

Let an agent with experience navigate and prepare the documents needed when closing on a transaction. Missing something here or there can cost you time and money. Also, each state has different regulations surrounding the purchase or sale of a home. A Real Estate Professional has the experience needed to guide you through.

What Is Your Home Worth?

Pricing your home correctly will attract the right buyer and make sure it isn’t on the market for too long. However, you need the eyes of someone not emotionally attached to your home, to ensure the true value is assessed. The National Association of REALTORS found that, “the typical FSBO home sold for $184,000 compared to $230,000 among agent-assisted home sales.”

Value of an Agent
Value of an Agent

3 Tips To Consider When Buying A Home.

Tip #1: Keep Your Money Where It Is.

One thing that you want to avoid before purchasing a new home is making any other large purchases. You don’t want anything to negatively impact your credit score before buying a home. This includes opening new credit cards, or taking on new debt. Lenders want to feel confident in your ability to be financially responsible, especially when they’re considering you for a loan. In short, don’t take any risks with your credit score if you’re planning on investing in a new home.

Tip #2: Bigger Isn’t Always Better.

When you’re buying a house, you may gravitate towards the biggest home on the block. It’s important to consider what your potential resale value will look like. If you have the most expensive home on the block, it will only go up in value as much as the homes surrounding it. The largest house only appeals to a few people. If you’re planning on reselling, you want to have the largest number of potential buyers possible. Instead of searching for the best house on the block, you should search for the house that best fits your needs.

Tip #3: Survey the Neighborhood.

People often fall in love with their homes, but they often fail to consider the neighborhood. If you’re planning on having children, you need to determine what school district the home is in. Even if you aren’t planning on children, you still should research what schools are nearby because it may impact the resale value of the home. It’s also not a bad idea to try your morning commute from the house, to determine if that would impact your decision. Don’t be afraid to drive through the neighborhood during different times of the day to really get a lay of the land.

Exterior Home Shot
3 Tips When Buying a House

Toss Out Your Shovel And Rake

Enjoy your retirement and let somebody else take care of the yard work and exterior maintenance. It’s time to downsize and start spending more time with your hobbies and less time taking care of your home. A condo in an active senior community might be just what you need.

Having a condo means you can travel all year without the stresses that come with maintaining a home while you’re away. It’ll be easier to just lock the door and head to the sunshine in the south if you aren’t concerned about lawn care or shoveling.

In a senior community, you’ll be surrounded by your peers with similar interests and life experiences. Friendships can be formed easily and some neighborhoods plan group activities or trips. There is also less concern about loud and rowdy neighbors in a senior community.

Many communities offer a range of care, allowing you to easily transition from independent living to assisted living. You might also be able to enjoy dining privileges at a clubhouse or exercise in a community gym.

The demand for active senior housing is increasing. Find out what options are available in your town by contacting one of Mel Foster Co.’s Senior Real Estate Specialists ® (SRES®). Click here to find an agent.


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