11 Things Retirees Shouldn’t Overlook When Buying a New Home

One way seniors waste money is by keeping a home that’s too big. Downsizing after retirement can save people a significant amount of money.

They’ll likely have lower utility costs and could have a smaller mortgage payment or none at all. Fewer repairs and lower maintenance can also decrease costs and make everyday life more convenient.

However, because needs can change as we age, retirees should consider home features that could matter now and later when shopping for a new home.

Climbing up and down stairs typically becomes more difficult as people age, and even if you have no issues tackling stairs now, you might in the future. After all, you’re likely purchasing a home you’ll live in for many years.

Choosing a house with a first-floor primary bedroom can reduce the risk of falls 10, 20, and even 30 years down the road.

Access to laundry on the first floor can also reduce fall risks. Carrying laundry baskets into the basement isn’t just inconvenient. It can reduce your field of vision and tie up one, if not both hands, so holding onto a railing can become difficult, if not impossible.

Something as simple as grab bars can prevent nasty falls. Ideally, the bathroom would already have some installed, but if there aren’t any, it’s not an automatic reason to pass on the house.

You can always have grab bars installed yourself. So, if there aren’t, check to see if there’s adequate room for them by the toilet and in the shower area. The average cost to install a stainless-steel grab bar is about $250.

Interior stairs, such as those in the bedroom and laundry area, aren’t the only stairs to consider. You’ll also want to assess the steps that lead into your home. How many steps are there? Are they steep? Is there a railing to hold onto?

Some homes might have several steps for one entrance but none for another. If you're considering a home with an elevated front entrance, consider using another entry, such as a back door. Or consider if it’s possible to install a ramp into the home.

Having a sizable lawn has its benefits, but consider whether it’s something you want to tackle in your retirement years. Even if you don’t perform lawn care yourself, hiring someone else could become expensive.

Lawn care included in an HOA fee or a smaller lawn are things to think about if you want one less worry as you age.

Lowering yourself into the tub or stepping up and into the shower could become more difficult as you get older. A walk-in shower could make things easier and help prevent unnecessary injuries.

If you can’t find a home with a walk-in shower or tub, you may be able to add one yourself. If that’s something you choose to do, it’s a good idea to consider renovation costs when shopping for a new home. 

A walk-in bathtub will run between $5,000 and $8,500, depending on the type of tub.

There’s no way to predict the future, but decreased mobility is common among older people, and there’s a possibility you could find yourself using a wheelchair years down the road.

Choosing a home with wider doorways will eliminate the need to renovate later should you or your spouse need a wheelchair.

There are several things to think about when considering taking out a mortgage as a retiree. For example, do you expect to live long enough to take on a traditional 30-year mortgage? What are your plans for the home once you pass?

If you want to leave your new home to an heir, are you comfortable with them taking over the mortgage payments? You might decide to use funds from your old home or dig into your retirement savings to purchase a new home outright.

You’ll want to consider how long you’ll live in your new home before buying if you don’t want to pay capital gains tax. (Capital gains tax is a tax you pay when you sell a home worth more than you originally paid.)

To avoid paying capital gains tax on a home sale, the home must have been your primary residence for at least two out of the five years preceding the sale. So, you’ll likely want to ensure the home will work for you in the long run before closing the sale.

When choosing a location, property taxes are something to consider. After all, you’ll still pay taxes, even if you don’t have a mortgage. Some areas have higher property taxes than others, even with similar home values.

Additionally, some states offer seniors significant property tax breaks, while others don’t. So, if you haven’t decided on a location yet, it’s a good idea to research property tax regulations before buying a home.

Another factor to consider when choosing a location is convenience. How close is it to medical facilities?

If you don’t have your own vehicle or think you may no longer drive one day, you’ll also want to consider public transportation for traveling to medical appointments, getting groceries, and anything else you’ll need to do.

Individual needs vary, so features that matter to some retirees may not be as important to others. Regardless, finding a home that checks every box can prove difficult. The good news is that you can add many features yourself if you can’t find the perfect home.

Downsizing is a common way people prepare for retirement, but there’s more to think about than square footage. 

Considering what your future will look like 10, 20, and 40 years from now can help you purchase a home that will meet your needs throughout your entire retirement.