Many seniors find themselves reconsidering where and how they live as they age. Empty nesters may decide to downsize, while those with health issues must consider whether it makes sense to adapt their home to meet their aging needs or to move elsewhere. From a financial standpoint, it may be time to think about maximizing the investment you’ve made in your home over the years.

Everyone’s situation is different, and only you will know what works best for you at this stage of your life. Working with an SRES® (Seniors Real Estate Specialist) designee can be your best option for knowledge, understanding, and support throughout the home buying and selling process. Key issues to consider include:

• Downsizing vs Renovating: A smaller home can make life more manageable and give you greater financial freedom. If aging issues make it difficult or dangerous to navigate your home, moving to a ranch-style residence or condo affords the ease of one-level living. Or you may decide to adapt your home to fit your lifestyle changes. However, it’s possible that the cost of renovating will exceed the cost of selling your current home and buying one that already suits your needs. Your SRES® will review all of the factors involved to help you make a decision. 

• Relocating: Whether you have lived in a particular state or county all your life or have made an area your most recent home, you will have set down roots. Your friends, doctors, social activities, and favorite restaurants and stores are all nearby. However, moving may allow you to enjoy a warmer climate, be closer to (or farther from) children and grandchildren, or live in a 55+ community that offers plenty of amenities and activities.

• Reverse Mortgages: From the time you purchase a house, you are directing money towards the principal and interest, property taxes, insurance, and maintenance. At this stage of your life, you may want to explore ways to make strategic use of your housing wealth. Primary options include a Home Equity Conversion Mortgage (HECM), also known as a Reverse Mortgage, a Cash-Out Refinance, and a Home Equity Loan or Line of Credit. Only the HECM has optional monthly principal and interest payments, easier credit requirements, and a growing line of credit that lasts as long as at least one borrower remains in the home. 

Working with a SRES® (Seniors Real Estate Specialist) is the key to making choices that work best for you.