5 Money Questions To Ask Real Estate Agents Before Relocating in Retirement
Written by
Nicole Spector
Edited by
Molly Sullivan
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Relocating in retirement is a common move and one that can be in your best interest. You may save money by selling your current home and moving into a smaller one, ideally in a more affordable location, or by going somewhere where you don’t need a car. There are tons of other potential pros — like closer proximity to family, a nicer climate or just the invigorating feeling of a fresh start.
Though there are tons of great things that come out of relocating in retirement, it’s not a move that should be made without serious consideration. If you’re thinking about relocating in retirement, make sure to work with a seasoned real estate agent who knows everything about the place you’re thinking of moving to and ask them the following finance-related questions.
How Much Are Property Taxes Around Here?
One of the financial evils of homeownership that we don’t talk about enough is property taxes. Property tax rates vary by location — sometimes dramatically. For example, the average property tax rate in Peoria, Arizona, is 0.41%; in Trenton, New Jersey, it’s 2.65%. Talk to your realtor not just about rates, but about dollar amounts. Based on a home’s selling price, how much can you expect to pay annually in property taxes? If your property tax bill in the new location will be way higher than what it is now, be sure to factor that into your plans.
What’s the Average Cost of Home Insurance in This Neighborhood?
Another not-talked-about-enough aspect of owning a home: the cost of home insurance. The average cost of homeowners insurance for a 12-month policy from the insurers in Progressive’s network ranges from $1,090.08 per year to $3,353.74 per year.
Home insurance rates are skyrocketing in many regions due to a sharp increase in climate-related disasters. These numbers could soon double. Some areas, where hurricanes, wildfires or other climate-related disasters are increasing, will become even pricier. Ask your realtor what the average cost of home insurance rates are in your desired location. Also ask about natural disaster risks. Are you in a flood zone? A wildfire zone? An earthquake zone? Be sure to know, because that could make prices higher and/or require a supplemental policy.
Are Home Values in This Area Going Up or Down?
This might be the last home you ever buy as a primary residence and as such, the prospect of selling may not be relevant to you. But a home is still, ideally, an investment, and it’s in your best interest, as well as in the best interest of your heirs, that you buy in a neighborhood where values are going up. Ask your realtor in which direction home values in your desired area are trending.
How Near Would I Be to Reliable Public Transit If I Lived Here?
You may be a great driver and you may love your car, but every retiree needs to get brutally honest with themselves about the long-term feasibility of being in the driver’s seat. You could still have healthy eyes and sharp reflexes at 80 years old. Or you could end up being forced, by health issues, to give up your license at 72. You don’t know, so you need to heed to the policy of “hoping for the best, while preparing for the worst.”
Unless you can afford to Uber around everywhere, you should plan on using public transit in the event that driving is no longer a safe option for you. Ask your realtor about local transit access and reliability.
How Close Would I Be to Grocery Stores, Hospitals and Recreational Centers?
Unless you really want an ultra-rural life, you probably don’t want to end up in the middle of nowhere where you can’t get to a grocery store to buy healthy foods, have no local community centers where you can make friends and stay social and are miles and miles away from hospitals and specialists. Be sure to ask your realtor how far you’d be from these and other places that will only become more important to easily access as you age.
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