Often, your home is more than just a possession and embodies years of memories. Untangling yourself from the emotional attachment you feel is difficult and the subsequent selling of the home can be hard.
But there may be some incentives for you to downsize your home. Downsizing can reduce stress, increase money flow for the future, and less space means less upkeep. Also, with recent changes to superannuation, you can make an individual contribution of $300,000 into your super account from the sale of a property, or $600,000 if you’re a couple.
But how do you let go? Here are four practical ways to detach.
Stop calling your house your home
As soon as you make moves towards selling, start calling your house a “property”. This will help you create a bit of psychological distance and will assist in creating the emotional detachment needed. When you haven’t detached from your home it’s difficult to see it as a product. But that’s all it is, something you must sell and with some luck, someone wants to buy.
Put yourself in the buyer’s shoes
Commit to the process. That means looking at the property through your buyer’s eyes. Get rid of the clutter, any pet smells and simplify your home. Despite all your charming nick-knacks being great centre pieces, they may be a turn off to those walking through.
Be sure to remove any items or furniture that are there just because they have deep emotional value but don’t suit the space. If possible, get a non-biased opinion on the things you should remove and what you should keep when staging the house.
Stick to a realistic selling price
Many sellers make the mistake of asking for a selling price that is too high due to emotional attachment clouding their judgement. Ask yourself, does your home’s sentimental value translate to an increase in the asking price? Often the answer will be no. Many sellers make the mistake of asking for too much, which can backfire because it can keep your property on the market for an extended time.
Professional advice on the value of your residence will hopefully help you to sell it at the right price and time.
Work to your own timetable and only list your home when you’re ready. Think about the positive aspects of moving and why you decided to list, and reaffirm those regularly. Think of this house as a chapter in your life that’s closing and there will be many more.
Keeping this positive mindset during the sale of your property will help you with the process and you might find yourself eventually enjoying it. It’s not always easy but you can put yourself into the right frame of mind to accept this big change and start a-new.
Downsizing and contributing to super is an important decision. There are some benefits and dangers, together with a few unknowns, to consider before taking the plunge. To find out more about the government’s downsizing initiative, click here or call us on 1300 300 820 for a copy. We can also arrange a time for you to meet with one of our financial advisors to see whether this is right for you.