Can't Sell Before Retirement? 4 Options To Recoup Your Money

As generations change, their housing needs vary. Many baby boomers are finding that their larger homes are difficult to sell to younger generations with different interests. Generation X and millennials are simply not interested in sprawling homes with multiple bedrooms and big yards. 

What can you do if your pre-retirement home isn't selling as well as you'd hoped? Here are four options you have.

Reverse Mortgage

A reverse mortgage is a great option for many seniors, but it's particularly valuable for those who can't get a good value for their home. In a reverse mortgage, as its name suggests, the mortgage company pays you each month instead of the other way around. The company takes ownership of the home and pay a monthly fee to you for living in it. Then, when you pass away, they can sell the home to recoup their investment. A reverse mortgage is the simplest way to get the value of your home upfront when you need it. 

Renting out the House

If you don't want to live in a large home anymore but can't sell it, why not rent it? Becoming a landlord has some challenges — namely overseeing repairs and collecting rent as well as vetting potential renters — but it is also a source of monthly income that may exceed what you owe on the home. If you own a home outright, you may just owe taxes and insurance on it. In this case, monthly rent could provide enough income to pay for a smaller home for you and your spouse.

Sharing the Home

If your home was originally designed to house a family, it might still do exactly that. Many baby boomers have friends or family who could benefit from either a live-in companion or the ability to share expenses. Sharing a home reduces your overall costs and prevents loneliness. This is a great option for adult children who may have a hard time making it on their own or for adult siblings whose families have moved out.

Become a Vacation Rental

If your family isn't interested in sharing your home, why not consider renting it short-term? Unlike long-term renters, short-term vacation rentals come with little commitment. You can rent out a room, a portion of the house, or the whole house for as few nights or as many as you'd like. This is the most flexible way to take advantage of a larger home, as it can be adjusted to fit your own needs and schedule.

Which of these strategies can help you cover the costs of a home that you're unable to sell? Whether it's a complete payment — such as a reverse mortgage — or just a supplemental income to cover expenses, you'll surely create a more stable retirement plan and a happier time for years to come. 

About Me

Budgeting For Your Family Years

Hello everyone, I am Avery. I would like to explore budgeting practices to adopt upon finding out you are expecting a child. The way a child impacts the bottom line must come into consideration to keep your finances healthy through the child raising years. I will talk about the major and minor purchases required throughout these years. Perhaps more importantly, I will share information about accounting practices you can use to make sure you always have the funds available for these items. Please come back often to learn more about budgeting for a family. Thank you for visiting my site.