Downsizing can be a complicated topic. Sometimes, it’s an exciting move where you can look forward to the next chapter in your life. Other times, it’s a conversation everyone dreads, but you know you must have it eventually. The truth is that planning early can make the difference between a positive experience and an unpleasant one. However, a lot can happen over the course of the next few years, and it’s essential to be prepared for anything.
How Is Your Health?
Health is another topic many people would prefer to avoid, especially if you’re a private type of person. Still, you need to address it to create a realistic and achievable plan for your future and retirement. If you’re healthy and mobile, the world is your oyster after you sell your house. You can travel, explore the world, and do many of the things you didn’t have time for while managing a large family home.
But none of us is getting any younger. The idea that you might need more support as time goes on is something to consider. In that case, you may have a trusted relative who is happy to provide you with the help you need. If you’d prefer not to lean on family, you can look into community assistance programs that might be available in your area. This is a bridge you don’t necessarily have to cross yet, but it’s always a good idea to see what your options are.
You may have never considered becoming a real estate investor after selling your home, but many people do it! The following posts may provide some food for thought:
- A Complete Guide to Real Estate Investing in Guelph
- Full-Service, Senior Transitions
- Growing Your Wealth Through Real Estate Even in a Recession
- Negotiating With Tenants as a Guelph Real Estate Investor
Should You Assign Power of Attorney?
A POA (Power of Attorney) is someone who makes important decisions on your behalf when you can no longer do so or if you no longer wish to. You can assign two types of Power of Attorney, one for health and one for finances. The caveat is that you must make this decision while you are still capable.
If you become unable to manage your own affairs without POA, your family may have to appeal to the courts to handle selling your home and other financial decisions. That can be a heavy burden for everyone involved, which is a good reason to start at least thinking about a POA. Who should you grant such authority to?
- Your POA can make all kinds of decisions on your behalf, so you want to ensure that you choose someone you trust to act in your best interests. Often, this will be a spouse, an immediate family member, or a long-time friend.
- Trust is one aspect. You also need someone with the knowledge and ability to handle the responsibility.
- Remember that you can have more than one POA. Everyone has different skill sets. One relative might be your POA for health, while you choose someone else to manage your finances.
- When making this decision, it’s important to know your rights and what power you are signing away.
After you’ve made your decision, you always have the option to revoke or reassign another POA. Your lawyer will be able to advise you and provide more detailed information to help you choose the best path.
Selling Your Family Home: The First Step
The downsizing process typically begins with selling your family home, which can be a big project in and of itself. Getting the best results from your sale empowers everything you do from now on. How can you ensure a successful transaction when the real estate market has changed so much over the last few years?
A great way to start is to consult with an experienced Realtor® who is familiar with the nuances of your particular area. They will know who the buyers are, what they’re looking for, and how to reach them. Your agent will guide you step by step through the process, which likely looks something like this:
- Conducting a CMA (Comparative Market Analysis) to determine approximately how much your house is currently worth.
- Preparing your home to appeal to buyers and potentially increase your final selling price, which includes cleaning and decluttering, strategic home improvements, and effective staging.
- Devising a marketing strategy to bring your listing to the attention of the most likely buyers.
- Negotiating with buyers and their agents to earn the highest possible price and best terms for your sale.
Looking for even more ideas for a successful sale? The following resources will get you off to a great start:
- Refining Your Offer Strategy When Selling First House
- Best Practices for Selling a Home in Today’s Market
- Renovating Vs. Selling Your Home As-Is
Your Bright Future Awaits!
Turning the keys in your family home for the last time can be emotional. But once you receive the funds from your sale, the future is wide open to you, with so many possibilities to choose from. Here are just a few paths you might take:
Rent a smaller home or apartment. Renting doesn’t build equity, but the interest you earn from the proceeds of your sale might cover most or all of your monthly carrying costs. You’ll also have the freedom you never had when you had a large property to care for. Repairs and maintenance are your landlord’s responsibility. And once your lease expires, you have the option to pack up and move somewhere else.
Buy a less expensive condo. Buying a smaller place grants you more control over your property and still allows you the pride of ownership. Plus, your equity will grow as your condo rises in value.
Explore the world. You have the money from your sale and no repairs or maintenance to worry about. If you also have the travel bug, now’s your chance to see the world!
When you plan it right, downsizing never has to feel like the end of an era. Instead, you can see it as a new beginning, where you are free to choose your next adventure.
Are you ready to explore the possibilities for your future after selling your home? We have worked with downsizers at every stage in life and would love to help you get started. Contact us today at info@gowylde.ca or call 519-826-7109 for more information.
