What lifestyle do you want to live?
Are you planning to be active in retirement? Do you want to be in a place with lots of open space and outdoor activities? Or do you prefer somewhere closer to a city with all the arts and restaurants and the late-night stuff that goes on there?
Do you want to live in a community that includes amenities or where a la carte options like club memberships and golf packages are offered? Deciding on the correct type of community for your goals makes selecting the home much less complicated.
First, envision your lifestyle day to day, week to week, month to month. What does that look like? Once you have this identified, we can determine a property to help achieve your goals.
Some mistakes people make when making this decision include buying based on a magazine vision or simply copying what their friends have done.
What’s the best approach? Usually, there’s a split. You have half who are methodical and do understand their long-term vision. Others say, “Hey, I’m going to buy based on the lowest price and size,” and they focus on the house first, not the community. But while thinking that they can get a house for a certain amount, they neglect to think about where it is located in relation to everything they want to do. Consequently, they spend a lot of time not enjoying where they live, then end up selling that property and buying another to get the lifestyle they truly want.
When you get clear on the lifestyle you want to live, you’ll be able to find the right property, the right location, and the right size, and maintain the proper budget.
This may point you toward a 55+ community with a vibe that offers activity options and amenities geared toward a similar age group. Or it may point you toward a Country Club community that offers the whole lifestyle without the retirement community feel—more of a club mentality. Residents do many things like golfing and boating together, and even parties.
A middle ground would be finding a traditional home, with social clubs or activity hubs easily accessible but not required. Some of these listings are in areas of investor properties, bringing a constant parade of Airbnb or VRBO traffic to the neighborhood. This would be an excellent fit for someone who loves meeting new people because the activity and hustle-bustle will allow you to still feel in the thick of it. “I may be retiring, but I’m not old.” But if you aren’t interested in that atmosphere, being surrounded by short-term rental properties can create a nightmare environment.
How can you clarify which of those communities is best for you? Are there resources? Do you need a real estate agent to help? Do you need someone on the ground in the location where you’re aspiring to be, or can you handle everything online?
You can find much factual information on the internet, but until you set foot in a community, you won’t have a feel for what you’re looking at. When buying from afar, it’s critical to have someone who can guide you. Many communities are gated, and you won’t have access to them without the help of an agent. Until you can set foot behind the gates of many communities, you’ll have little to no idea of the different vibes in each community.
We’ve had a few clients who insisted the house they saw advertised was the one for them, but after they visited, they realized there was no way they could tolerate the neighborhood. That’s a big waste when flying across the country. In black-and-white terms, it’s easy to suggest a certain number of bedrooms and bathrooms, even square footage. Still, something like the ease of access due to traffic or tourists or proximity to amenities can be tricky to determine when you don’t live there. It may look like it’s only two-tenths of a mile from the beach or golf course, but the time is excruciating in traffic.
Some people believe selecting a house based on price per square foot is possible. In that case, they usually end up with a house they don’t want. Why? Because you can pack a house with square footage that’s not usable. One client bought a 4,600 square feet house… but the hallways were six feet wide. Every stairway landing was the size of a small room. That chewed up valuable living space. Especially in retirement, consider how much you want to clean. How much square footage do you want to heat? How much do you want to cool?
Taking the next step
Once you’ve decided what you want, how do you secure that property? You may need to sell your current home. Buying a new house is difficult enough in the same town, but you’ve got more to coordinate in two different geographical locations. To compound the problems, many areas will not accept a contract contingent on you selling your current home.
You will have to figure out how to best get out of one home and into another. If your previous house is paid for, that’s a lot easier, but if you’re covering two mortgage payments, you don’t want to risk your financial security. Exploring financing options in the area where you are looking to buy will be essential. If you’re not paying cash, you need a lender familiar with the area and its idiosyncrasies.
Again, it’s helpful to have a local advocate. In some cases, we have alerted clients to issues they would not otherwise have known. “Hey, I know we fell in love with that house, but there was fifteen minutes' worth of cars waiting to make that right turn at the next big block.”
These issues won’t change for three or four years because builders are adding homes quickly. None of that information is on the internet. You need a real estate agent willing to research all the details for you and have your best interests at heart.
I’m biased as a great real estate agent with a team who will do that for you, but not all agents are equal. You’ll have to be careful to find someone who honestly does know the specific property type and part of town and lifestyle you want to live and can help lead, guide, and counsel you through that.
I had one client who had been vacationing in my area for years and years. When they decided to retire here, I took them on tours of the six gated communities that matched their criteria. We spent time exploring until they could narrow it down to the one community they wanted plus another they would consider. Then we focused on getting the house they wanted in that community. Nine years later, they still love the house and the community.
There’s also the gradual approach where you rent or purchase something in the area you’re interested in before you retire, so you can begin to enjoy the lifestyle and learn more about the communities and amenities available in the vicinity. Once you invest in a property, you can get to know the community by visiting a few times each year. You can get to know life in different seasons, whether winter versus summer or off-season versus tourist season. Then you can sell that property and roll it into another ideal long-term home. Or, possibly, you could hold that first property as an investment and add additional cash flow to your retirement through short-term rentals.
As humans, we value property differently in retirement. People in their thirties and forties often focus on proximity to work or the needs of their children. Retirement is different. You finally get to choose a house based on the life you want to live. It may not be quantifiable in bedrooms, bathrooms, square footage, or lot size. A lifestyle offers a different value system. The math may be more or less critical regarding comparable pricing. If I’m 63 and have the money, I’m less concerned with bargain hunting. If it feels right for you, especially if this is the last house you want to live in, you should enjoy it every day like a vacation.
You want this house to be a home run. It isn’t about where the kids drop their books after school. You want to be comfortable, living the life of your dreams, not just with selfish comforts but also having purpose and meaning.
As you approach retirement, make it a priority to meet with a knowledgeable agent. Spend time chatting with them from afar and in person. Help them understand what you’re looking for in your retirement home. Then and only then can they truly help you fulfill those dreams and secure the lifestyle you want for your best years to come.