Downsizing in a year or in a couple of weeks

storage containersAll too often downsizing happens after a homeowner ends up in a nursing home or after they die. As a homeowner and a mother, I made the decision long ago that I would take responsibility for my own stuff while I am still able to deal with it.

I have less stuff. I buy less stuff and I have gotten rid of many items that were stored in the basement or shed for years. When I had to move my parents out of their condo I had to figure out what to do with all of their stuff. Some of it ended up in my basement and some of it remains, ten years later.

There was furniture that I was going to “upcycle”.  Clothing that for some reason I just couldn’t part with. I got rid of stuff that I brought with me when I went off to college.  I sold a few items. Gave items to family members who put them to use. I recycled a few items and donated items to charity.

Sometimes older homeowners decide to move. If you are over 55 and have lived in the same house for 20 years or more give yourself some time to downsize. When the process is compressed due to an emergency we don’t always make the best choices. When we have time to think and plan the process goes much more smoothly.

We live in a society and culture where it is very easy to accumulate stuff and difficult to get rid of it. Some folks just toss it in the trash. That isn’t even as easy or inexpensive as it once was. Getting rid of stuff takes more time and planning than accumulating stuff ever did.

Getting a home ready to sell is all about cleaning and decluttering. Homeowners who plan ahead and allow enough time for both have a better and more stressfree experience.

There comes a point in our lives when “stuff” is more of a burden than a blessing.

Know where you want to live before you sell

Craftsman style living rooms
Living room – Craftsman style bungalow

Seniors who are planning to downsize, rightsize, or move often start the process by asking what they need to do to sell their house. They want to know how much it will sell for and what they can do to get top dollar for it and they will need that information.

In the current sellers market the first step for people who wish to move is to decide where they want to go.

  • Choose a housing style. That might be a condo or townhouse or an apartment or a house.
  • Choose a neighborhood or area. Not all housing styles are available in all neighborhoods.

Choosing a housing style or neighborhood can be done in any order. Often people choose an area and then they choose from the housing styles available in the neighborhood.

  • Decide how much to spend.
  • Make sure the desired housing is available.

Sometimes it is hard to find a house that is or will be on the market that is a good fit. It is a good idea to figure this out before putting your current home on the market.

In today’s local market home sellers have an advantage. They are calling the shots. Buyers on the other hand are competing with other buyers over fewer houses.

Some buyers who are downsizing buy before they sell. Not everyone is in a position to do that. Most people put their house on the market while they are looking for another home.

Putting a house on the market is just one part of the process. It can take time to come up with a plan for where to move to, which type of housing to buy or rent, and when to put your house on the market.

Storage container season begins today

storage containersI like to think of it as the cycle of consumerism. People buy “stuff’ to give as gifts during the holidays. We all get gifts. Some will sit in a drawer for the rest of our lives.

If you go to a big box store today like Target, you will see displays of storage containers. Some are red or green or both and those are for Christmas decorations. There are clear plastic tubs and a large assortment of baskets and boxes.

Don’t buy the storage containers. Sure there are a few things we need to store like holiday decorations and seasonal clothing.

Rethink what goes into the containers and why. Most of us have too much stuff which is why I think of storage containers as the enemy. I have a tall stack of empty storage containers in my basement. They were all full at one point. I have no memory of what was in them.

I gave some of the stuff away and donated some to charity. Some of it was recycled and some of it ended up in the trash.  I do enjoy looking at the empty containers.

Resist the temptation to buy storage containers for items that you do not want or need. Get rid of the excess stuff that sits in storage. Make some space for nothing or for something that matters.

Cash buyers do not wait until spring to buy

January can be the perfect time to put a home on the market. We have sold more homes to cash buyers in January than in any other month. Home buyers who plan on getting a home loan often wait until after they get an income tax refund before they buy a house. That is why March 15th is considered an ideal time to put a house on the market.

Quick sales happen all year long and so do cash sales. Putting your home on the market in January can lead to a higher sale price, a shorter time on the market, and a cash offer.

Money is money but with a cash offer, there is no appraisal. There are fewer steps that the buyer and sellers have to go through. There is no waiting for underwriting approval.

loft style condo - kitchen
Loft style condo

 

About online reviews

Online reviews of real estate agents, doctors, and books are an excellent idea. Unfortunately, they are not very helpful. Most if not all real estate agents have five-star ratings. Often the questions asked on the surveys don’t hit on anything that matters. Often it is only satisfied customers who are offered a survey.

Sure the doctor was on time and he gets a 5 for that but he is also a bully and his “charts” contain inaccurate information. That kind of information is valuable to people who are looking for a doctor. Sure being on time is important too but doctors can do things or not do things that cause a lot more harm than keeping patients waiting.

I have worked with hundreds of real estate clients over the years and I can tell you that no two clients are the same and neither are any two properties. First-time home buyers who have only had experience with one agent may not even notice that their agent did not do a good job. They don’t understand that for agents being on time and answering the phone is a small part of what is important.

A better way to vet an agent is to ask friends, neighbors, co-workers, and family members for recommendations, especially those who have recently worked with a real estate agent.

Rent free and mortgage free retirement

Mortgage lenders don’t like this idea and neither do landlords. There are some huge advantages in owning a home free and clear in retirement. In St. Paul the property taxes are high but property tax refunds are available through the State of Minnesota for low-income property owners.

In 2020 according to Zillow, 37% of Americans own their homes free and clear. The number went up by 5.5% after the Great Recession. In 2017 41% of baby boomers owned their homes free and clear. For seventy-year-olds, an estimated 68% are mortgage-free, in 2022 that number grew to 70%.

Over the years, I have read tons of advice suggesting paying off a mortgage isn’t a good idea. It makes sense that if paying off a mortgage means using up savings and retirement accounts it probably isn’t a good idea. Other debts should be paid off first, especially credit card debt.

Owning a home free and clear means lower housing costs during retirement. Those property taxes are killer but still lower than renting or paying taxes and making mortgage payments.

It might even be possible to retire without having a million dollars by owning a modest home that is paid for and no debt.

It isn’t possible to save up enough for long-term care. To get help paying for care seniors will need to spend all of their savings. In most cases, homeowners do not have to sell their houses to pay for care as long as they live in the house.

There are some psychological benefits of not having to make house payments can be liberating. Something to consider when planning for retirement.