Feeling the pinch
It’s in the news everywhere you look: seniors staying put, unable to sell homes. So what happens to those that need to move, that need the services that are offered in retirement communities? Or, those that choose the lifestyle change for increased social interaction and a higher quality of life?
Selling a home can be a daunting task in today’s market and many are choosing not to face the challenge. Yet others are pursuing the change and finding ways to make it happen. Cited in the November 16-20, 2008 Puget Sound Business Journal, Michael Skahen of Lake & Company states “It’s all about price, you have to price the home as low as you possibly can from the beginning.” He recently sold a duplex by offering 5% less than the comparable properties on the market.
Real Estate professionals will help their clients market their home effectively. From staging the home with the right furniture and accessories to including a golf cart in the sale can help differentiate a home from others on the market. On-line advertising and creative websites are tools that can help sell a home more effectively.
A Spectrum White Paper lists the reasons why moving to a Continuing Care Retirement Community (CCRC) is a financially smart decision. Here are just a few of them:
- Living in community allows expenses to be shared more affordably than living individually.
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Financial strength of the organization and the ability to fundraise.
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Statistics show that people who live in a retirement community tend to be healthier and live longer than people who remain in their homes.
- Many CCRCs offer the guarantee of care, even if the resident runs out of funds.
- Residents have the peace of mind from knowing they will be cared for.
- CCRCs provide tax benefits to those that qualify as fees paid to the organization are deductible under the medical deduction.
The White Paper goes on to encourage seniors to continue with their plans to move to a retirement community and not put them on hold. You “should not delay your opportunity to enjoy the new investment as soon as you can, while you are still able,” it reads. Also, do not assume you can’t sell your house. Houses are still selling and the Seattle-Tacoma market is faring better than many areas of the country. You may have to price your home lower than its peak a few years ago and it may take longer to sell, but houses are still selling.
November 26th, 2008 at 4:31 pm
As an Associate Broker, I’ve been directly involved in the current real estate market. The key words there are “current” and “market”.
A current market means that you can sell your home for what someone is willing to pay for it. It doesn’t matter if just a year before it was worth $100,000 more. If some major problem occurs, like 9/11, over-saturation, or as we’re experiencing today, economics, the value of your home is always what someone else is willing to pay for it.
The question of whether one should sell or not depends on why they are selling.
If they are selling a smaller home to move up to a larger home, this is an excellent time to sell. Let’s say you have two homes, yours is worth $300,000 and the other is worth $450,000 and the market drops 10%.
This means your home is now worth $30,000 less, but the other home is worth $45,000 less. So, by moving up, you’re taking advantage of the market drop and saving $15,000!
If you’re downsizing, well, the opposite of the above scenario is true. One way around this is you could downsize in home size, but upgrade to a nicer area that makes your sale and purchase at least even out, or maybe even end up in a better home for the same money.
But what if you’re selling your home and the equity is going into a retirement community and maybe other investments.
Well, the retirement community may also be lowering their costs because of the economic issues. So, you may save some on buying into the retirement community and again things could pan out okay.
From an investment position, you want to talk to a financial counselor. There may be some very good buys on solid companys, and when the economy revives will earn you back any losses you may have from selling in a down market.
If you must sell, then you have to make sure your home is in excellent condition and is staged. Staging is different from decorating. Staging is designed to create a feeling of a living space while showing off the home, and not the “stuff” in the home.
Your price must be right. Don’t base your price on the neighbor who’s house has been on the market for months. Base it on similiar homes in your area that have actually sold, and be competitive against the ones currently on the market.
By properly staging and pricing your house you stand a much better chance to actually sell it, and you won’t have to endure months of waiting, having others going through your home, and having to live in a sterile environment.
I hope this has helped, and best of luck in your decision.
Steve Foreaker
December 29th, 2008 at 4:01 pm
Preparation –the key to smooth selling!
If you are looking at the Wesley Homes website, you are probably thinking about the possibility of selling your home and moving to a retirement community. It’s a big decision and a major life change that deserves careful consideration and thoughtful planning.
So where do you start? First, learn as much as you can about possibilities for retirement living. Where do you want to be located? What kinds of surroundings and amenities are you looking for? What are the costs for locating in the facility, up front and ongoing?
Once you have explored the range of living choices and costs, the next thing to do is to have a Realtor determine the value of your home in the current market, the costs involved in selling it, the likely time it would take to sell, and the amount you would net from the sale after all your expenses are paid.
Costs for any deferred maintenance or repairs to your home should be part of the agent’s analysis. For example, a water heater more than 10 years old or a roof more than 15 or 20 years old will likely have to be replaced as part of the sale. It’s also a wise practice to have a pre-sale inspection done so any problems that might be unknown to you like pests or dry rot in the crawl space or wiring problems, can be dealt with before the house goes on the market.
You have probably heard about how important “staging” is when you are selling a house. Staging simply means pruning out excess furniture and decorative items to make the house less a statement of who you are and more a statement of what it offers a buyer. It’s also important to think about what specific pieces you would want in your new place.
Several years ago, to be of better service to my “more mature” clients, I decided to take the training to earn a Senior Real Estate Specialist designation. One of the services I provide as a Senior Real Estate Specialist is to help you organize the necessary preparation from start to finish and provide you with qualified people to assist you in readying your property for sale.
Whatever your decision, I hope this information is helpful. My very best wishes for a successful transition.
Nancy Colson
Associate Broker
Senior Real Estate Specialist
Windermere Real Estate/Auburn, Inc.
700 M Street NE
Auburn WA 98002
253-735-8900 Office
253-670-1191 Cell