make housing costs a reality
One way to avoid surprises like this is to thoroughly check the housing market before posting the “for sale” sign. Older homeowners should consult with several realtors and appraisers to get a realistic idea of how much their home can sell for and how much a small home will cost.
This is especially important to do now. Local markets vary, but empty nesters looking to make a fortune on the sale of their family home may be disappointed. Rising mortgage rates and falling stock markets are making it increasingly difficult for young home seekers with families to afford the down payment and monthly payments for a large, expensive home.
Haas said many older homeowners have been delaying downsizing during the worst of the pandemic and their homes now remain on the market. , the sale price fell, she said. At the same time, older buyers are competing with younger buyers for cheaper, smaller homes, she said. “There aren’t many small Ramblers or single-level townhouses to go to,” Haas said.
In addition to determining the selling price, homeowners can get an idea of possible savings by comparing the expected cost at the new location to the cost at the current location, experts say.
One of the often overlooked items for sellers: closing costsAccording to real estate website Zillow, this can reach 8-10% of the selling price. These typically include his 6% real estate agent fee, but the seller can negotiate a reduction in that fee. Moving costs and home staging such as new paint, floors, and remodeling also weigh on profits.
Mike Robinson, a real estate agent in the Atlanta suburb of Peachtree, Georgia, said homebuyers who plan to move into condos or independent homes in a planned retirement community of 55 or more will also have budgets for monthly fees. He said he had to stand up. These Homeowners Association fees go toward security, grounds maintenance, and amenities such as pools and fitness rooms. These are generally not tax deductible and range from $100 a month to he over $1,000.