The Benefits of Selling a Property to a Cash Buyer for Downsizing in Retirement

1. Free up funds

Perhaps one of the most common reasons for downsizing is to increase cash flow. In the sunset years, most retirees get stuck in the “asset rich, cash poor” bracket. Selling your property for cash and purchasing a smaller one with the proceeds allows you to reinvest the surplus in your checking accounts.

Also, a smaller home translates into lower mortgage rates significantly reducing your outgoings from your pension. The leftovers can go a long way in funding your new lifestyle and improving your bottom line.

2. Lifestyle upgrade

A larger house is more stressful to manage. By downsizing, you have fewer possessions, less clutter, and more time on your hands. Smaller homes mean fewer household tasks, having a space you can uniquely make yours, and fewer repairs to undertake. This goes both ways if you sell your house on an as-is basis. Putting a home up for sale "as-is" lets the homeowner skirt the need to fix the place up for a potential buyer. In other words, a home that's placed on the market as an as-is listing is being sold in its current state. No upgrades or improvements will be made by the seller before the sale. The home may need major repairs or it might simply require a style and décor update. The buyer takes responsibility for repairs and modifications when a home is listed as-is, including problems that may not be apparent at the time of sale.(1)

With spare time, you can leverage your creative juices, indulge in art, socialize with friends, and catch up with the buzz. Not to mention you can have a spontaneous life. Just lock your house and travel the world.

3. A perfect space for your needs

After retirement, your needs drastically change. You may now favor the quaint and quiet life of the countryside over the bustle and buzz of town life. Downsizing offers the perfect opportunity to live in a new space in line with your needs. A cozy home in the Sunbelt states or a house by the sea presents a new canvas you can fine-tune to your liking. When you downsize, you can get rid of the old décor, style your house as you like, and build a space reflective of your story.

4. Lower utility bills

Smaller homes cost less to heat up, less to water, and less to light. Reduced square footage after downsizing reduces your monthly utility bills by a margin. Lower utility bills aid in a predictable monthly bill that you can factor into your monthly spending. In addition to lower utility bills, trading in your property for a smaller home reduces the cost incurred in maintaining your HVAC, water supply, and drainage, all of which drive up your utility bills. 

5. Lesser workload

For many seniors, cleaning the gutters, mowing the lawn, replanting flowers, and repainting the porch sounds like a lot of work. And it is. Energy levels wan in the retirement period. Your home however requires the same upkeep and maintenance. Sadly, to keep your property in pristine condition requires money. Downsizing helps you reduce the workload and cost associated with maintaining your home. A smaller workload equals lesser stress which is what you are aiming for in senior living.  Moving to a smaller home not only reduces the workload but directly reduces the stress that comes with maintaining a larger home.

6. Bypass mortgage rates

Inflated mortgage rates are another thing to contend with when downsizing. The major perk of selling your property for cash is you can purchase a new home with the proceeds without feeling the pressures of high mortgage rates. Mortgage rates have increased by 2.5 percentage points since the start of the year. To put this into perspective, a $400,000 mortgage would attract a $2,341 monthly payment and over $443,000 in interest costs for a 30-year long loan averaging at 5.78% p.a. 



When you sell for cash, you could get better deals for houses since you are also paying in cash. Say goodbye to pricey mortgages.

7. Capital gains

If you’ve owned your home for a long time, you may be eligible for capital gains. Selling for cash is a common option to bypass the taxman. Before you sell your home to a cash buyer, consider having an expert asses the value of your property and whether you are eligible for tax breaks. Pezon offers the two solutions in one therefore reducing the hassle of seeking a real estate valuer or underwriter. 

How to sell your property for cash

If you’ve decided to downsize and want to sell your home for cash, we buy houses Philadelphia offers you the perfect avenue. there are a few steps you need to keep in mind. Before selling your house, you will need a cash buyer. We have already done the heavy lifting for you in simplifying your search for a buyer. 

After you contact the company, a property evaluator will inspect the property’s condition and offer a review with a drafted contract. You can accept or decline the offer based on the value you are getting. While reviewing the offer, do not sign anything until you have understood the terms and are comfortable with them. Once the agreement is signed, you will receive the cash and wheel away to finding a retirement home. Cash deals typically take between 10 to 14 days to complete. Always remember to work with a reputable company to avoid scams and loss of property.

Outlook

Selling your property for cash when downsizing is a good way to increase your bottom line, increase cash flow, and find a new home that suits your needs. When downsizing or retiring you need to consider the benefits of selling your home to a cash buyer. With the benefits in mind, you can make better decisions on seeking cash buyers for your property. 

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