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Common mistakes retirees make when downsizing their homes

On Behalf of | Nov 21, 2022 | Real Estate

Many people move to Florida after they retire. Sometimes, it’s necessary for retirees to downsize their homes because of their new, fixed incomes. These are four common mistakes they make in that area.

Overestimating the cost of your current home

It’s easy to overestimate your home’s value and list it to sell at too high a price. Learn its true value by comparing it to that of other, similar homes in your area. Overestimating can lead buyers to believe that you’re trying to take advantage of them.

Living beyond your means

Before you retired, you probably grew accustomed to a certain financial level of spending. After downsizing to accommodate your retirement, it’s possible to try to sustain your previous spending level. However, this is a mistake that can quickly cost you. Because of your new fixed income, you should calculate your finances and work out a new budget you can live with going forward.

Underestimating the cost of a new home

In real estate, downsizing means finding a smaller home you can afford. Unfortunately, many retirees make the mistake of underestimating the cost of a new home, even when it’s much smaller than their old one. It’s crucial to consider the area and the type of home. You should also explore the market to see the value of homes in any new neighborhood you’re considering because it could give you a better idea of how much you might spend.

Not considering long-term issues

Moving into a smaller place after retirement is wise, but not considering potential long-term issues you might face is a mistake. As you grow older, your health might decline, and you might have mobility problems. Making sure your new home is accessible for disabilities can prevent such issues in the future.

Avoiding these errors can help you make the most of your move after retiring.