Tips for Purchasing a Retirement Property
Many choose to downsize to a smaller home or relocate to a favorite place upon retirement. Here are some tips and things to think about:
What size and type of community will fit your needs for many years to come?
Consider the amenities of the community and if these are amenities that you think you will use in the future. Sometimes with more amenities or gated communities comes higher HOA fees. Usually those who are retiring can be on a fixed budget, so plan ahead that some of the HOA fees may increase over time. Is the location of the community near places you’d visit frequently such as grocery stores, doctors, and other retail. There are also 55+ communities that offer many activities and lifestyle calendars in which cater to those who are retired.
What features are you looking for in a home?
Usually a retirement property will be your last home for many years. Does the floor plan work for you and your spouse as you age? For example, most would prefer a master bedroom on the first floor and not too many steps to deal with. Are the doors and shower areas easy to access if you had to have a walker or wheelchair? These questions may seem so far away in happening, but it’s always easier to have a home that you can grow old and comfortable in and not have to make too many changes in years to come to accommodate any future disability or struggles.
What are the benefits of buying before you sell?
If you are financially able to buy before you sell, then you won’t have the stress of rushing to pack and move to your new home by a deadline. Also, you’ll have more time to find the “right” home for your retirement. You will have more control over the move of your new home and do things in a comfortable and stressless manner. Also, you’ll be able to move out of your prior home into the new home, making it easier to stage your current home to sell. In addition, it will be easier to show as you won’t have to constantly clean the home to get it ready for showings. Your home will also be appealing to buyers knowing that you can close immediately and that you have flexibility for closing.
What are the benefits of selling before you buy?
Unfortunately, not every is in a situation where they can buy before selling their existing home, but if you aren’t, then there are still some advantages of selling before you buy. Having the knowledge of how much money you really have from the sale of your home can really help you be in a good position to determine how much you want to spend on a retirement home. Also, you won’t have the stress of wondering how long it will take to sell your current home and how long you may have to make extra mortgage payments, and pay taxes, insurance, and HOA fees for two properties. You’ll have to plan a temporary place to live and store personal belongings until you secure a new home purchase.
Are there benefits to selling “subject to the sale” of your current home?
One option of purchasing your retirement home may be to make an offer on the retirement home with the contingency that’s “subject to the sale” of your current home. It will put you in a weaker negotiating position as not all sellers will find this as an attractive offer since they may not be able to determine the market of your current area. Sometimes this contingency is used once you have your current home under contract and that creates a stronger offer. If you haven’t gotten your home under contract yet, then there is usually a time limit that the seller will grant you to get your home under contract while they continue to market their home. If the seller were to get another offer on their home, then they may give you 48 hours to secure financing and remove that contingency. If you aren’t comfortable with removing the contingency, then the contract would cancel and the other qualified buyer would be able to proceed.
