Buying a new home in retirement gives you the opportunity to downsize, invest, and make valuable lifestyle changes. Whatever your reason for moving, make sure you have the knowledge and tools to make your move a success. The following guide explores how to navigate your financial options, address challenges, and find the home that’s right for you. If you want to start your real estate journey off right, keep reading!
Know What Your Home Is Worth
A thorough understanding of your financial options will help you make educated decisions during the selling/buying process. A great place to start is by researching the average listing price of homes in your area. You can do this by exploring local real estate listings and finding homes that are similar to yours in location, size, age, and upkeep. Say you live in Irvine, California, and discover that the average selling price of a home is $837,000. Knowing the average market price of comparable homes in Irvine will help you determine a listing price and provide you with an estimate of how much you could make in a sale. Additionally, knowing the potential sale price of your home will influence your budget for a future home.
Ask a Real Estate Agent
Asking for help and clarification from industry professionals is one of the best investments you can make during the moving process. Real estate agents are incredibly knowledgeable of the intricacies of home sales/purchases and will work with you to set a sale price, find prospective buyers, and negotiate offers. Your realtor will also handle the majority of the complex paperwork pertaining to property taxes, transfer taxes, and invoices. Real estate agents also work with clients to find and purchase a new home (there’s a reason 90 percent of home sellers use a real estate agent).
Talk to a Mortgage Broker
Mortgage brokers assess your finances, gather documentation, and offer advice on types of mortgages. If you have concerns about obtaining a mortgage, a mortgage expert may be able to mitigate your concerns by offering valuable information and advice. During this process, it is important that you are asking the right questions and that your broker is providing you with clear answers. Don’t be afraid to ask how their mortgage application process works and what type of experience their team has. You might consider asking for clarification about how much their services cost, what interest rates they can offer, and what your monthly payments will be.
Find the Right Home
Once you have consulted a real estate agent and a mortgage broker, it’s time to start searching for the perfect home. Most people begin by identifying the location they want to live. Consider asking yourself the following: Which location has the best weather? Who do I want to live near? Do I need to be near any particular services (hospitals, doctors, shopping centers, public transit, etc.)?
After you have identified your dream location, make a list of what your ideal home looks like. Maybe you want a yard, guest bedroom, garage, and large kitchen — write it down and search for homes that align with your list. Your real estate agent can work with you during this process to find homes that fit your individual needs.
Think you have found the perfect home? Connect with a home inspector who can identify any structural damages and recommend repairs and improvements. The report your home inspector gives you can help guide your final purchasing decision.
Buying a new home is a great opportunity to start fresh, change scenery, and enhance quality of life. While the real estate world can seem complicated, there are numerous experts who can answer your questions, address concerns, and explain confusing topics. Don’t let yourself be held back by industry jargon or complex financial information — ask for advice, get answers, and plan for the future. Best of luck on your journey to a new retirement home!