A paid-off house is not the same thing as free housing.
That matters if you’re trying to decide whether staying in your current home or moving to some type of senior living makes more financial sense.
The comparison isn’t your mortgage payment versus a community’s monthly fee.
You have to look at the full cost of both choices.
What does it really cost you to stay in your home?
Start with what you’re actually spending now.
That may include:
- Property taxes
- Homeowners insurance
- Utilities
- Routine maintenance
- Lawn care
- Snow removal
- Housekeeping
- Transportation
Then there are the expenses that don’t happen every month but still need to be planned for.
A roof.
Heating and cooling equipment.
Plumbing.
Exterior work.
Other major repairs.
If your mortgage is paid off, those expenses don’t disappear.
What might you spend to make staying work the way you want?
There is another part of the staying-home calculation that can be easy to miss.
Ask yourself whether the house works the way you want it to now.
Maybe it does.
Or maybe you’d like to make some changes.
That could mean modifying an entrance, changing a bathroom, addressing stairs, or making another part of the house easier for you to use.
You may also choose to pay for help at home.
Those expenses belong in the comparison too.
The question isn’t simply:
“Can I stay here?”
A more useful question is:
“What would it cost me to stay here the way I want to live?”
Don’t treat “senior living” as one price
This is the other side of the comparison.
Senior living isn’t one thing.
Independent living, assisted living, life-plan communities and other housing arrangements can have very different pricing structures and services.
One community’s monthly payment may include some combination of:
- Housing
- Utilities
- Maintenance
- Meals
- Housekeeping
- Transportation
- Activities or amenities
Another community may include fewer services or charge separately for some of them.
If support or care services are involved, those costs may work differently too.
That’s why asking, “What does senior living cost?” doesn’t really give you enough information.
The better question is:
“What would this particular option cost me, and what expenses would that payment replace?”
Compare the actual choices
This is where the numbers become useful.
On one side:
What does it really cost me to live in my current home?
What additional expenses might I have to make staying here work the way I want?
On the other:
What would the specific housing option I’m considering actually cost?
What does that payment include?
What expenses would I no longer be paying separately?
That’s a much more useful comparison than looking only at your mortgage.
Money isn’t the only part of the decision
You may run all the numbers and still have other things that matter just as much.
Location.
Privacy.
Independence.
Maintenance responsibility.
Convenience.
Social connection.
Being near friends or family.
The lifestyle you want.
And maybe you simply like your house.
Those are legitimate considerations.
So is wanting something different.
As I said in the video:
Staying in your current home is a completely legitimate choice.
Moving to another housing option is a completely legitimate choice.
Period.
It’s your choice.
Where a Realtor fits into the conversation
My role as your Realtor® is to help you understand the real estate side of the decision.
What might your current home be worth?
What could selling potentially provide?
What might another home cost?
What real estate considerations come with staying versus moving?
I don’t decide which housing option is right for you.
And there may be other professionals you want involved for financial planning, estate planning, taxes, care costs, or evaluating a particular senior-living community.
My part is the real estate piece.
The practical takeaway
Don’t assume staying is cheaper just because your mortgage is paid off.
And don’t assume moving is cheaper because certain expenses may be included in one monthly payment.
Compare the real numbers.
Compare the actual housing options.
Then look at what you want your life to look like.
Understanding your options before making a decision is the smartest thing you can do.
I’m Jess Carpenter, Realtor® with Elfant Wissahickon Realtors, serving Philadelphia, Montgomery County, Bucks County and parts of Delaware County.
If you have a real estate question, Just Ask Jess.
For more information about housing options and planning, explore the Family Resource Center.