We all want the best for our parents. We all want our parents to ride off into the sunset and enjoy their life when they retire. In some cases this means downsizing, and using that home as a cash cow for the remaining years of their lives.
In many cases this is the best option for your parents, but in some cases this may not be the best thing to do for them. There are many reasons to sell the family home and move into a smaller place or a retirement home. Here are some reasons why you should think about a few other options which may be available before convincing your parents to sell their home.
1. In this crazy market, downsizing may not save them much money. Going from a detached home and into a semi, townhouse or condo, may not make them as much as you think. Sometimes staying there longer, will be worth it until its absolutely necessary. The market is jumping so much, a few more years could mean a few hundred thousand dollars. There are also fees associated with moving, and you may have to do some renovations in a new home as well.
2. Moving to an old age home or retirement living may cost more to live monthly. These new places cost a lot of money to live in. It could be cheaper to bring care to your parents home. A few thousand dollars a month, is a lot of money for basic care. It may cost a lot less to hire somebody full time, and dedicate some space in the house to that care person. Or have the care come in daily instead. There are many options these days.
3. Moving a Senior to strange surroundings could affect their health. I have never been around a Senior that likes moving or moving out of a home they have lived in for a very long time. There are a lot of memories in a family home, and it might be very painful and could affect their health in a negative way.
4. Retrofit the family home. This is a great way to keep your parent at home, and do some home renovations to accomodate a new stage of their life. Turning the main level of a house into a one level home is easier than you think. There are many professionals who specialize in this type of renovation. You can use the rest of the house for storage or for full time care person.
5. Reverse Mortgage or Investing with Equity. There are many companies which will use the equity in the home to invest and pay you after a period of time. This is a great option to use the money that the equity is accumulating and re-invest it in other portfolios. Some Seniors choose to do a reverse mortgage, take the equity out and enjoy it right away. These are both options rather than selling to get the money out of the home.
Being an Accredited Senior Agent, has taught me that most children and parents first thought is to sell the house, but I have learned that there are many options that should be thought of before putting the “for sale” sign on the lawn. After these options have been exhausted, the next step may be to sell the house.
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