Question: I’m 63 with an aging house that needs repairs, but I might eventually want to move to a retirement community. Is it worth making those fixes?
Answer: There can be benefits to staying in the home you know and love in retirement — the familiarity of the neighborhood, the ability to stick to an established routine, and the quirks of your house that you’ve mastered by now, like that one closet door that always sticks.
But dealing with an aging home can become increasingly difficult as you age.
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In a study by The Hartford Center for Mature Market Excellence and the MIT AgeLab, 59% of homeowners aged 50 and older reported that home maintenance has become more challenging for them over time. And that percentage rose to 69% for those ages 70 and older.
Moving to a retirement community could help alleviate the burden of home maintenance. You may find that other than some light dusting and reorganizing, you’re spending minimal time on cleaning and upkeep, and more time doing the things you’d rather be doing.
If you’re 63, you may be eying a senior living community a few years down the line. But what if you’re living in an aging house that needs repairs now?
Should you invest the money for the sake of your comfort over the next few years? Or are you better off putting off those repairs, hoping for the best, and reserving your money for a big move down the line?
Your comfort and safety need to come first
When you’re gearing up to make a move, it makes sense that you wouldn’t want to sink money into your current home. But Ben Mizes, Real Estate Agent and President at Clever Real Estate, says that despite your plans to move, your near-term safety has to come first, as well as your comfort.
“If the repairs will change what makes a home uncomfortable or unsafe to live in on a day-to-day basis … they’re worth doing, even if you’re moving in a few years,” he says. “Think of these as investments not in your net worth, but in peace-of-mind.”
Mizes says that any repairs related to electrical systems or plumbing should generally be prioritized. And any unstable flooring should be addressed, too, as it poses a safety hazard.
Alexei Morgado, Realtor, CEO, and Founder at Lexawise, agrees.
“You must differentiate between repairs that establish functionality and comfort versus aesthetic repairs,” he says. “I personally think it is well worth it to put money into what we term as ‘comfort and safety improvements,’ such as handrails, step-free access, or adequate lighting.”
Morgado also insists that any repair that preserves the value of the property is generally worth making. If you neglect an essential repair, not only might your own safety and comfort suffer, but you may end up having to tackle those issues before selling your home in a few years anyway. So you might as well make them at a time when they can benefit you, too.
Distinguish between repairs and upgrades
It’s one thing to fix things in your home that aren’t functioning the way they should be. It’s another thing to make improvements to your home when you’re not planning to stick around for long.
Mizes says that if you’re moving in a few years, you probably want to avoid cosmetic upgrades like new kitchen countertops because your likelihood of recouping your investment is pretty low.
JLC’s most recent Cost vs Value Report shows that many so-called desirable upgrades don’t necessarily pay for themselves in terms of resale value. A mid-range bathroom remodel, for example, will only allow the typical homeowner to recoup 80% of their investment at resale. A basement remodel typically results in 71% of the cost being recouped at resale.
Mizes says that if you’re going to make actual improvements in this situation, rather than just repairs, you should focus on those that are functional — things like bathroom accessibility.
Additionally, as Mizes points out, buyers often prefer to make cosmetic changes to suit their personal taste. So if you’re thinking of moving in a few years, now’s not the time to spend money on cosmetic changes, since you won’t get to enjoy them for very long.
Finally, Mizes says, you don’t want to be too stubborn about avoiding repairs, thinking you’ll just make that your buyer’s problem when you sell. If there are too many obvious issues with your home, it could make it difficult to attract a buyer. And what you save by not making repairs, you might lose in the form of a lower sale price or concession.
“A $10,000 roof replacement can help you avoid a $20,000 to $30,000 discount to a buyer later down the line,” Mizes explains. And that way, you get to benefit from that repair for however much longer you do decide to stay in your home.