The old saying “strike while the iron is hot” — which means you should act when you see an opportunity instead of waiting to see if conditions change — can be applied to so many different situations. Whether it’s asking that special someone out for coffee, jumping at the chance to switch careers, or investing in something with the potential to really deliver, taking a leap of faith when such an opportunity arises can pay off in any number of great ways.
It’s very much the same when it comes to selling your home. Sometimes, the stars align just right, and the conditions for a seller’s market dominate. Capitalizing on such good timing is a major boon for anyone with plans to move, especially if you’re looking for ways to maximize your nest egg for retirement.
The perfect storm of conditions is upon us. Here’s why now is the best time to sell your home.
Time and Circumstance
There are plenty of different variables that go into whether it’s a good time to sell your home, and the current real estate landscape ticks just about every box. Traditionally, the spring season is the busiest, as home buyers begin looking in
earnest once the weather turns warm again after a long, cold, wet winter. This means your home will attract lots of attention if you put it up on the market during the spring.
The spring real estate market rolls around every season, though; it’s pretty predictable. What isn’t, however, is how hot the real estate market is for other important, albeit temporary, reasons. First, post-pandemic trends have seen people leaving urban areas, driving up demand for larger homes in nearby suburbs. Plus, interest rates remain historically low, which means it’s much easier for buyers to afford larger mortgages. Additionally, with so many people opting not to move during the pandemic, this sky high demand meets unusually low supply. Taken together, this means the market supports historically high home prices – for now.
More Reasons Why It’s a Good Idea to Sell Your Home Now
Seasonal and situational market conditions that favor sellers won’t last forever. Eventually, the spring busy season will end. Meanwhile, life continues to approach normalcy after the coronavirus pandemic, and this may slow down the COVID-inspired housing spree. Not only that, but rising inflation rates are likely to trigger increases to base interest rates, which would result in mortgage affordability being negatively affected. All of these reasons are excellent examples of why selling your home at this exact moment is such a great idea.
But it goes further than that, especially for anyone either approaching retirement age or who is currently enjoying their retirement at home. While you certainly can hold onto your family home after you retire – a practice called aging in place – there are lots of really good reasons why you shouldn’t. Here are just a few of them.
Aging in Place Costs More than You Think
Once you retire, that’s it – you better have a good nest egg saved in the form of retirement savings and income. Owning your own home might give you a place to keep all your stuff, but the upkeep on a large house is killer.
Between utilities like heating, cooling, water, and electricity, the costs of yard work and trash removal, and having to repair or replace any damage to your home, that nest egg of yours could begin looking pretty sparse. And that’s to say nothing about paying property taxes! In other words, though your home may be paid off, it’s far from lacking in high expenses.
This is why so many retirees decide to sell their homes and move to an independent living community instead. The cost of living at one of these communities is often more affordable than maintaining a large property, comes with fantastic amenities, and leaves you with no responsibilities for things like maintenance and repair. Plus, the sale of your home will provide you with plenty of equity for the move – anything left over goes right into that nest egg!
Click here to read about the hidden costs of home ownership after retirement.
Some Independent Living Communities Help You Save on Medical Expenses
Besides the cost of simply living, the biggest expense seniors can face is healthcare. Medical expenses that aren’t covered by Medicare can run high, and having the resources to pay those expenses is important to live comfortably. Thankfully, this is where selling your home now and moving to an independent retirement community can help immensely.
Some modern retirement communities, called continuing care retirement communities, work on a principle of continuity of care. This means that your medical needs can be met if your health situation ever changes. For instance, if you a spouse find themselves needing help with daily living, you won’t need to move off campus to an assisted living facility. You can get assisted living care of even skilled nursing care right on your current campus, around your current friends. The best part, though, is that moving to a continuing care retirement community locks in the cost of your medical care from day one – those costs never change over time. So selling your home and retiring now means you don’t need to fear unknown future medical expenses!
Click here to learn about the average cost of an independent living community.
Other Benefits of Moving to an Independent Living Community
Affordability is a huge reason why people often sell their homes and move to an independent living community. Stress-free living certainly can’t be undersold! But living in one of today’s modern retirement communities offers so much more, as these gorgeous, resort-style campus settings offer so many different amenities that living in one of these communities is like being on permanent vacation.
Inside and out, these communities have it all. Recreational spaces like swimming pools, fitness centers, walking trails, picnic and gardening areas, game and card rooms, and library reading rooms are just the tip of the iceberg. Activities like painting, drawing, and pottery lessons in fully-equipped art studios or woodworking instruction in crafting spaces also abound. Plus, opportunities exist for fine on-campus dining experiences and entertainment in performing arts rooms are all part of the deal.
Don’t just downsize – rightsize! Read 13 tips for downsizing your living space.
Act Now – Or At Least Do More Research
Real estate market conditions change so rapidly that you can easily blink and miss it. There’s no guarantee that we’ll see such a great seller’s market again any time soon. So it’s a great idea to act now!