3 Options Seniors Have When Moving Out of Their Home
Updated: Nov 5, 2019
There are many reasons why a senior may choose to leave a home in which they’ve lived for decades. Whether transitioning to a smaller home, moving in with a loved one, or going to an assisted living facility, seniors must decide what to do with their old house. This can be a difficult decision for financial and sentimental reasons. To help ease the stress involved with this process, we sorted the three primary options seniors have when moving out of their home.
Placing your house on the market.
If you don’t mind getting rid of your home, placing it on the market may be the best option for you. This also gives seniors a great headstart when it comes to affording a new home. For those who are downsizing to a smaller home or apartment, this option would also free up a lot of extra cash that can be placed in a savings account or used to pay off bills.
Homes in Grosse Pointe Farms sold for a median price of $325K last month, sold on average for about 1.6 percent below listing price, and spent and average of 58 days on the market. This tells you the market is very competitive, with plenty of potential for a good, quick sale.
Before making any final decisions in the selling process, you should take some time to learn about the market in your area. Attend some open houses, look at online listings, or talk to some real estate agents to determine a common listing price for homes that are similar to yours.
Have your family take over the house.
Some seniors realize the necessity for moving out of their home without having the will to give up their house. After years of creating memories in this home, they don’t see a good reason to give it up now. Since seniors might not be able to care for the home on a consistent basis, they can have members of their family take over the homes instead of getting rid of it.
This could be as simple as having a loved one stop by the home every once in a while to keep everything running smoothly. You could also have a family member move into the home if you have a grandchild or cousin currently looking for a place to live. If you feel comfortable asking for a small fee, you could end up receiving a monthly income as well. Forbes notes there are still tax rules involved with renting to a relative, and there will still be property taxes, utilities, and so forth.
Either way, this is a great option for those seniors who would rather keep their home within a familiar group of people while still retaining ownership.
Finding tenants to rent your home.
The more business-oriented seniors may have an interest in generating a monthly income from their old property through rental. Finances will weigh into your choice again, as you should think about how much rent you can charge, in comparison with your ongoing costs. For example, renters in Grosse Pointe Farms pay an average of $1,800 per month, which may or may not be sufficient to offset your costs.
Seniors should also keep in mind the maintenance required to run a rental property. If you’re not able to put in the time, money, and energy required to be a property owner, renting is still a possibility. You can always hire a professional to manage the property on your behalf. Of course, you would have to pay a fee, but you’d still be receiving a decent sum each month.
Just because you have to move out of your home for medical or financial reasons, it doesn’t mean you don’t have options when it comes to the fate of your property. Consider the advantages and disadvantages of each choice as well as what’s best for your current circumstances.