We are retiring in a couple of months. We plan on selling our current home, buying a summer cottage in Canada, and spending the winters down south. We’ve asked three Realtors what our house is worth, and all have given us a value below what we think it will sell for. Should we take their word for it, or wait for the market to come up before we list? – PLANNING AHEAD
DEAR PLANNING: I don’t recommend that you spend your retirement somewhere you don’t want to be.
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Whether your last 40 years of work have been a joy or a grind, you should look forward to this next chapter with excitement. I’ve often described retirement as the chance to revert to a better version of your teenage life: there is less responsibility when the kids leave the nest, you no longer have a curfew, and the equity you’ve built can pay for a night out without having to get a part time job at McDonald’s.
It sounds like your Freedom 55 (or 65) plan is in place, which sometimes creates a challenge I’ve seen a few dozen times through the course of my career. Occasionally, new retirees with the best of intentions feel they know more about the real estate landscape than the professionals working in it, and think their home offers more value than the market can provide.
A number of years ago, I met with someone from my neighbourhood to do a market evaluation of their home. They were newly retired, had picked out where they wanted to buy their cottage, and were ready to hit the ground running. The homeowner thought their house was worth more than I suggested, and listed with another agent. They proceeded to chase the market for the next six years, always keeping their list price above market value. When the house finally sold, it was for 12 percent more than they originally wanted (but the market had increased nearly 60 percent by then). I’m not sure how satisfying it was to waste six years of their precious retirement trying to beat the odds.
Billionaire investor Warren Buffet hit the nail on the head when he said this: “I can buy just about anything I want, but I can't buy more time.” The time to sell your house is when you’re ready and able to retire, and there are many ways to market it so that you wring every dollar out of the sale. If you’re trying to sell a home that’s consistently overpriced, you could spend months (or even years) delaying the chapter you’ve worked so hard to reach. When I have this conversation with clients, most just want to know that they’re getting fair market value for their home.
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PRO TIP: I think everyone should retire the moment they can afford to. Many people love their jobs, but I’m sure few graduate from planet earth wishing they’d worked a few more years. Embrace the opportunity to make new memories, you can’t get this time back. #Advice #AskDavid #TheNegotiator
David is a top-selling Broker in Kitchener-Waterloo Region. He works personally with you when selling or buying your home. Call or text today for your free home evaluation! 519-577-1212.
