Weather and seasonal conditions are a more important factor in choosing a long-term location than you may realize. People move to warmer climates after they retire for a reason — the older you get, the less tolerant you become of cold temperatures. And snow and ice become increasingly irksome for walking and driving as you age.

Real Estate as a Retirement Asset

If you're planning to make your current home an investment for retirement, it's important to disregard the emotional ties that many people feel toward their home and treat yours like an investment. Make sure you're budgeting toward keeping the property maintained and equipped with up-to-date amenities. Keep personalization to a minimum and avoid being too trendy in your permanent structures and design. Consider the costs of selling the property at retirement, and have a plan B that includes assets unrelated to real estate that can provide income so you don't have to sell in a down market.

Additions to Add Value

In most housing markets, there are only a few additions and upgrades that you can make to a house that add value. Builders and designers are fond of calling some projects “investments” in the property, but if your plan to sell coincides with a downward trend in the market, even proven upgrades such as adding a bathroom might not yield a return upon sale. Make additions to your home cautiously to avoid wasting money that won't be recouped.

Homes need to be kept up to date, and that is part of the cost of owning them. A house on the market in 2008 that still has the same small, avocado-colored refrigerator your mom had isn't going to sell as quickly as one with more current appliances. Plan a regular, budgeted contribution to your household fund to cover upgrades, just as you do to cover maintenance. If you plan something more than a basic upgrade — such as changing from that avocado refrigerator to a modern, stainless-steel one — and you're not selling right away, beware that styles might change dramatically before you sell. The upgrade might make sense, as long as you budget the upgrade as something you will enjoy, knowing you might not recoup your investment upon sale.

Planning for an Empty Nest

This is your chance to plan your home around you, without having to consider your kids and their needs. Give yourself a chance to welcome this transition; it's an exciting time for both you and your spouse or partner. Be thoughtful and deliberate about what you do with your home after the kids are gone. Some parents will be happy to change the locks and convert the kid's room into a home office. But others may want to build an addition so that the kids can come back with their own children. Take this opportunity to strengthen your personal finances and theirs by ending your direct financial support and begin making financial decisions without the kids' goals in mind. You may choose to help them later under certain circumstances, but for now, this is the perfect chance to cut the apron strings.