Downsizing and selling your home

Around the time of retirement is the ideal time for many people to look into downsizing to a more manageable home and garden.

Any children you have will be grown and, hopefully, moved out into their own homes, so you won’t have a need for so many bedrooms.

Plus you may have less energy and mobility to get around and do the property maintenance tasks you did when you were younger.

You want a home that fits your retired lifestyle and future needs as you age.

Many older Australians also consider downsizing as an option to save money, fund their retirement lifestyle, or prepare for aged care costs.

The additional benefit is the move will help you to declutter, sell or give away any furniture and other items you no longer need and update what you want to, such as the lounge suite or TV.

There are a few options if you decide to downsize including moving into a smaller property in the same town, a sea change, a tree change, finding an apartment or flat, or moving into a retirement community. It is also an opportunity to find a place with the appropriate home modifications for your needs or the option of adding supports such as grab rails as you age.

Selling up

Selling your biggest asset, which will likely hold a lot of sentimental value for you, is a huge decision and you may be wondering what the best way to go about it is.

Most people will go through a real estate agent to sell their property, but you may choose to go it alone or use a seller advocate to help you with the selling process.

A real estate agent has the advantage of their experience and expertise to negotiate the best selling price on your behalf and manage the process for you, from marketing your property to the legal and financial requirements.

The right agent will act in your best interest and ensure there is no stress for you. Before choosing a real estate agent it is worth speaking to a number of different agents and inviting a few to do an appraisal on your home so you can compare their opinions.

When choosing an agent you can consider their:

◆ Experience

◆ Reputation

◆ Market knowledge

◆ Negotiating skills

◆ References

◆ Commission

◆ Marketing budget

Another option is to engage a seller advocate to help you through each step of the process. They can act as an intermediate between you and the real estate agent.

The seller advocate will assess your property’s worth, select an appropriate target market for your home and advise you on how to go about selling it.

They will then select a real estate agent for you and negotiate an agent fee and sale price that meets your expectations.

In most cases the seller advocate’s fee is a percentage taken from the real estate agent’s fee and there is no direct cost to you.

The final option is to sell your home privately, without help from any agencies or advocates.

Selling your home privately could save you money because you don’t have to pay agent commission and are in complete control of how much you spend on advertising.

This may turn out to be a better option when demand for homes is high and it is easy to sell, but you need to be very confident in your own ability to set a price and stick to it, as well as being able to do all the legal work and documentation yourself.

The need to do everything yourself is the main reason why most people don’t choose to sell their home privately.

It is important to do your research properly so you have a realistic expectation of what your property is worth, know the rules and regulations of selling a home and can be sure you have the time and patience, as well as the legal knowledge, to go through the process.

Tips for selling ‘stress-free’

To sell your home ‘ stress-free’ and maximise the benefits of downsizing you can:

◆ Find out what the house is actually worth

◆ Consider how to best present your house - should it be furnished or empty?

◆ Think about how you will sell it - via auction or expressions of interest?

◆ Consider how the sale of your home will impact your finances, especially the pension

◆ Get professional advice from a real estate agent or seller advocate, as well as a financial advisor.

The move

The sale of your home has the potential to become a stressful and busy period of your life, so the more you can do to smooth out the process, the better.

In preparation for the sale, go through your possessions and belongings to decide what you will be taking with you when you move.

First and foremost, know how much space you will have in your new home. Once you know this, you will have some idea about how many personal possessions you can bring with you.

Most people will have gathered a lifetime’s worth of well-loved belongings, so it can be difficult to decide what to keep and what to let go of. And it can be a very emotional process.

Taking an inventory of all your belongings, then asking yourself what you would take with you in the event of an emergency can help you in the decision making process. It will help you take stock of what is important to you, what you can live without and the things you can replace.

To move these items you may be able to enlist the help of family and friends, but you may also need a cleaner, removalist or gardener to assist - which you will need to book ahead of time.

For anything you are not taking with you, think about how you will sell it, give it away, or even pay for it to be dumped if it is broken or unsaleable.

Some tips and tricks for your move include:

◆ Start preparing early and don’t leave everything to the last minute. The first thing to do is decide on a moving date and work towards it.

◆ Gather any quotes from professional services you would like to use, such as removalists, and talk to anyone you would like to ask for unpaid help about your moving date.

◆ Collect any moving boxes and other supplies you will need so you can start packing smaller items ahead of your moving day. Allow plenty of time for packing so you can take your time to sort through everything.

◆ Don’t make the boxes too heavy and make sure you keep removable parts labelled in a bag or taped to the item they came from. Mark all the boxes clearly to help when you start unpacking on the other end.

◆ For large items, be careful when lifting and moving them and get help to load them onto a trailer, or ask your removalist to do this for you.

If you are considering downsizing, look into the professionals you can use to help you with every step of the process and make sure the move is right for you.

Other points you need to consider, and in many cases can get professionals to help you with, include:

◆ Paperwork such as redirecting mail, disconnecting utilities, change of address notifications