Q1 2021 - South Bay Market Report

Tips for Buying a Bigger Home for Your Retirement

By Bob Shannon
Photo by Pexels

While downsizing is a popular move for many retirees, some opt to “rightsize” by finding a bigger home that can support homesteading hobbies and host family gatherings. As you search, be sure to look for options that will allow you to explore your hobbies and that have enough room to have kids and grandkids over for holidays and long weekends. Chhabria Real Estate Company can help you find a home that’s perfect for your retirement.

 Considerations When Buying a Bigger Home

A bigger house might be great for your retirement goals but might not fit perfectly into your budget. It’s important to take an in-depth look at your finances before getting too deep into the home-buying process, and consider how much space you actually need.

When you’re ready to begin the research for a new home, start by diving into your finances. It’s important to determine whether your current or projected retirement income will cover a larger mortgage payment. This can be challenging for retirees who are on a fixed budget, so it’s vital that you do the math and be sure you can afford the monthly payments. 

If you know that your mortgage will increase when you buy a new home, you can start preparing for the extra expense by adjusting your budget now. Consider getting a budgeting app or a personal finance advisor who can help you find ways to save money. Look at all aspects of your spending habits and see if you can save money by eating out less or taking fewer trips in your car.

Beyond checking your finances, determine how much space you’ll actually need. While it may sound great to have three extra bedrooms for the whole family to visit on the holidays, the additional space will end up costing more for heating and electricity. Consider if you can get away with fewer bedrooms, or think about how those bedrooms could be used for hobbies when they’re not needed as guest rooms. 

By determining your precise needs for your hobbies and guest rooms, you can envision and start looking for a house that’s right for your retirement.

Managing Finances

One of the most challenging aspects of buying a new home is dealing with outstanding debt. If you have considerable debt, it will be much harder to get pre-approved for a new mortgage. It’s important to swiftly eliminate debt before trying to buy a new home, so consider debt relief options with a specialist. 

Some of the options for debt relief include debt settlement, debt consolidation loans, and credit counseling/debt management. There are a few factors that will determine what option is best, including your employment status, ability to pay back the debt, and the amount of debt you owe.

Getting Ready to Move

Along with doing the research and getting your finances in order, make sure you have a plan for moving day. For seniors moving to a bigger home, it’s important to have movers or family help you with the process. There are moving companies that are specifically designed to help seniors: do some research and find a company near you that’s reliable and affordable.

Buying a house for your retirement is exciting, but it will be a much smoother process if you have a better understanding of the true costs of moving to a bigger home. Consider how much space you really need, and then start researching home prices. Come up with a plan to reduce your overall debt, and then find a house that will fit within your budget. 

Are you looking for your dream retirement home in Palos Verdes? Contact Chhabria Real Estate Company for help finding your next home! 310-902-7227.

How to Navigate the House-Hunting Process During COVID-19

Written by Katie Conroy | Photo by Bram Naus

If you’re looking for a new home during COVID-19, then you’re not alone. The real estate market is still very much alive! While there are still many great homes on the market, you may not be able to visit and tour them all in person. From house-hunting to moving, you will have to navigate a few extra steps in the home-buying process in order to keep yourself safe during the pandemic, but you should be able to find a great home nonetheless. Keep reading to learn how you can use virtual tech and online tools to continue your housing search from home!

How Has the Coronavirus Affected Real Estate?

 The coronavirus shutdown has impacted the market in significant ways. Due to economic uncertainty, it might be harder to find your dream home and secure a good mortgage rate.  

• While it’s true that you can buy a house during the pandemic, consider whether this is still a good time for you based on your financial situation and job stability.

• Coronavirus restrictions have discouraged many sellers from putting their homes on the market, so you might have fewer listings to choose from.

• The lockdown has caused mortgage rates to fall, but getting a mortgage could be more difficult right now, especially if you have a low credit score.

• Reach out to a top agency like Chhabria Real Estate Company for all your home-buying needs.

Online Tools for Virtual House Hunting

 Social distancing orders have forced the shutdown of home showings and open house events, but you can still tour homes and neighborhoods using virtual tools.

• Use Google Street View to explore the neighborhood surrounding your favorite homes. 

• Search for home listings with 3D tours so you can visit each room and zoom in on the features that catch your eye.

• When viewing houses online, pay attention to the placement of windows so you can get a better idea of the natural light in the home.

• Many sellers offer live video-chat tours to show off their homes from a safe distance. 

• When you find the perfect home, use electronic signature apps to complete your official offer or enter into a purchase contract.

Tips for Planning Your New Home Repairs

Many homes on the market need some work. If your home inspection reveals problems, you should start planning your repairs so you’re ready to hire contractors and get everything fixed before moving in.

• Make a new home maintenance and repair checklist so you don’t forget any essential tasks when you finally move in.

• Find out how much it costs to replace or repair different components of your home, such as a fuel or water storage tank.

• Budget for your new home repairs now. Major issues like a leaking roof or HVAC failure could be very expensive to fix!

Believe it or not, you don’t have to put your house hunt on hold during the pandemic. Take advantage of the slow real estate market to find a great deal on your dream home and lock in a low mortgage rate! And when it comes to touring homes, don’t be afraid to ask sellers and listing agents to provide video walkthroughs so you can get a better view of the home you might be buying. With the right tools, searching for a home online can be a lot of fun!