As more and more baby boomers enter retirement age, the question of whether or not to sell their homes and move will become a hot topic. In today’s housing market climate, with low available inventory in the starter and trade-up home categories, it makes sense to evaluate your home’s ability to adapt to your needs in retirement.
According to the National Association of Exclusive Buyers Agents (NAEBA), there are 7 factors that you should consider when choosing your retirement home.
“It may be easy enough to purchase your home today but think long-term about your monthly costs. Account for property taxes, insurance, HOA fees, utilities – all the things that will be due whether or not you have a mortgage on the property.”
Would moving to a complex with homeowner association fees actually be cheaper than having to hire all the contractors you would need to maintain your home, lawn, etc.? Would your taxes go down significantly if you relocated? What is your monthly income going to be like in retirement?
“If you have equity in your current home, you may be able to apply it to the purchase of your next home. Maintaining a healthy amount of home equity gives you a source of emergency funds to tap, via a home equity loan or reverse mortgage.”
The equity you have in your current home may be enough to purchase your retirement home with little to no mortgage. Homeowners in the US gained an average of over $14,000 in equity last year.
“As we age, our tolerance for cleaning gutters, raking leaves and shoveling snow can go right out the window. A condominium with low-maintenance needs can be a literal lifesaver, if your health or physical abilities decline.”
As we mentioned earlier, would a condo with an HOA fee be worth the added peace of mind of not having to do the maintenance work yourself?
“Elderly homeowners can be targets for scams or break-ins. Living in a home with security features, such as a manned gate house, resident-only access and a security system can bring peace of mind.”
As scary as that thought may be, any additional security and an extra set of eyes looking out for you always adds to peace of mind.
“Renting won’t do if the dog can’t come too! The companionship of pets can provide emotional and physical benefits.”
Evaluate all of your options when it comes to bringing your ‘furever’ friend with you to a new home. Will there be necessary additional deposits if you are renting or in a condo? Is the backyard fenced in? How far are you from your favorite veterinarian?
“No one wants to picture themselves in a wheelchair or a walker, but the home layout must be able to accommodate limited mobility.”
Sixty is the new 40, right? People are living longer and are more active in retirement, but that doesn’t mean that down the road you won’t need your home to be more accessible. Installing handrails and making sure your hallways and doorways are wide enough may be a good reason to look for a home that was built to accommodate these needs.
“Is the new home close to the golf course, or to shopping and dining? Do you have amenities within easy walking distance? This can add to home value!”
How close are you to your children and grandchildren? Would relocating to a new area make visits with family easier or more frequent? Beyond being close to your favorite stores and restaurants, there are a lot of factors to consider.
When it comes to your forever home, evaluating your current house for its ability to adapt with you as you age can be the first step to guaranteeing your comfort in retirement. If after considering all these factors you find yourself curious about your options, let’s get together to evaluate your ability to sell your house in today’s market and get you into your dream retirement home!
This Sunday at 2 a.m., your clocks will jump ahead one hour, the start of more evening sunlight for months to come.
To many a minor annoyance or a bit of relief, Daylight Saving Time reminds us of the sun's daily effect on our lives and tells us spring is on its way. If only we could save ourselves from the seasonal allergies.
But no matter what the time change tells you, Daylight Saving Time is implemented for a reason. The tradition of springing forward and falling back is overseen by the U.S. Department of Transportation and is rooted in saving energy.
The agency boasts people tend to spend more time outside during Daylight Saving Time, meaning they tend to run household appliances and lights less during the nearly 8-month period. Also, it prevents traffic incidents because people are driving around more during the light hours. It also is a crime deterrent, DOT claims, because people are out during the daylight and not at night, "when more crime occurs," the agency states.
Daylight Saving Time was first used in World War I and World War II. But the U.S. didn't implement a nationwide Daylight Saving Time standard, the U.S. Department of Energy said, until Congress passed the Uniform Time Act of 1966. In 2007, the federal government expanded Daylight Saving Time, according to the National Institute of Standards and Technology, in order to reduce energy consumption. Daylight Saving Time now accounts for about 65 percent of the year.
However, not everyone agrees it offers energy saving benefits. Some studies claim the time switch saves energy on lighting but is surpassed by usage increases for heating and air-conditioning.
States are able to exempt themselves. Hawaii and most of Arizona don't take part in Daylight Saving Time. Arizona gets plenty of sunlight and in 1968, decided to opt out of the time change. However, certain Native American reservations in Arizona still participate. Other non-observers are the American Samoa, Guam, Puerto Rico and the Virgin Islands.
Tips for purchasing a short sale home:
Are you a patient buyer? Often it takes anywhere from 2 to 4 months to complete a short sale!
Be sure you completely understand the short sale process before making an offer on the property
The road to home ownership doesn't start with getting pre-approved by a lender or with choosing a real estate agent. The quality of your wallet begins the home buying process. Without an acceptable FICO score, buying a house is more difficult and, you could find yourself renting longer than you expected in Newton County, Missouri until your FICO score is acceptable.
A FICO score is a collection of your years of credit history based on an instrument developed by Fair Isaac and Company. The score ranges from 300 to 850, with the majority of people normally having a score of 600. In recent years, however, some people have seen their score drop dramatically after unemployment, charged off credit card accounts, or credit card accounts that were closed because they don't carry a balance. Some of the factors in summing up your FICO score are:
In reviewing your credit history, you'll see that you actually have three reports. Experian, Equifax and TransUnion. You have a credit score with each of the bureaus.
Lenders want to ensure that allowing you a loan isn't a risk for them. Your FICO score gives lenders an insight into what type of borrower you'd be solely because of your credit history. You'll need a score of at least 700 to get a decent interest rate. You'll still qualify for a mortgage with a lower score, but the interest accumulated over time could be more than double the amount of someone having a superior FICO score.
At First Home Mortgage Company we work with all tiers of credit history. Call Karen Cunningham (417) 624-8778 and I can help you get on the right track to the home of your dreams