According to a Merrill Lynch study, “an estimated 4.2 million retirees moved into a new home last year alone.” Two-thirds of retirees say that they are likely to move at least once during retirement.
As one participant in the study stated:
“In retirement, you have the chance to live anywhere you want. Or you can just stay where you are. There hasn’t been another time in life when we’ve had that kind of freedom.”
The top reason to relocate cited was “wanting to be closer to family” at 29%, a close second was “wanting to reduce home expenses”at 26%.
A recent Freddie Mac study found similar results, as “nearly 20 percent of Boomers said they would move closer to their grandchildren/children compared to 13 percent who said they would move to a warmer climate.”
Not Every Baby Boomer Downsizes
There is a common misconception that as retirees find themselves with fewer children at home, they will instantly desire a smaller home to maintain. While that may be the case for half of those surveyed, the study found that three in ten decide to actually upsize to a larger home.
Some choose to buy a home in a desirable destination with extra space for large family vacations, reunions, extended visits, or to allow other family members to move in with them. According to Merrill Lynch:
"Retirees often find their homes become places for family to come together and reconnect, particularly during holidays or summer vacations."
If your housing needs have changed, or are about to change, let’s get together to discuss your next steps.
Jay Buinicky, Realtor, Senior Real Estate Specialist
Today we are pleased to have Nikki Buckelew back as our guest blogger. Nikki is considered a leading authority on seniors real estate and housing. Enjoy!
It was her 80th birthday and as Sue's family gathered around in celebration, she announced a major decision. After years of toying with the idea, she had come to the conclusion that now - yes, now - was the proper time for her to move into a continuing care retirement community (CCRC).
Although they were a bit surprised, Sue's two adult children (both seniors themselves) nodded to each other and expressed relief that their mother would have access to the support and care she needed. Both admitted to a bit of worry about her living alone since their dad died, especially as they both traveled extensively and were not available to see her or care for her on a regular basis.
But, of course, they all realized that such a move would require a massive commitment of time and energy, with the first necessary step being to find a good real estate agent to help sell the longtime family home.
Sue mentioned that she was acquainted with an agent she had met at church and who regularly sent her mailings. The agent seemed quite nice and professional, had won numerous awards, was active in the community, and owned a variety of impressive-looking credentials. You know, she had a whole bunch of letters and acronyms at the end of her name.
Sue and her children arranged for a meeting with the agent, and while she was clearly competent and well-educated in her field, Sue just couldn't get past a nagging feeling that something was amiss. The agent was nice enough, but throughout Sue's entire life, she had tended to gravitate toward doing business only with those to whom she felt some sort of connection. Perhaps it was something she had learned from her father, a man who valued relationships in business dealings as much or more than mere competence. Not only did she want help, but she also wanted to feel a special sort of bond and trust.
The practice had served her well throughout life and now - with such an important transaction - she wasn't about to change her approach.
Sue scanned the yellow pages, spoke on the phone with a few agents, and even met with another over coffee, but still she couldn't find the sensation of trust and comfort she desired. She even did a couple of quick internet searches leaving her feeling confused and frustrated. It occurred to Sue's daughter that perhaps the CCRC that was to be Sue's new home would be able to provide a recommendation for a good agent. Indeed, they did, and that's when she met Joe.
Joe was different
He arrived at her home and immediately the two hit it off. Sue hired Joe to list and sell her house and as he began to take his leave, Sue touched him gently on the arm and said "Thank you, Joe. You are different than other agents I've met with," she smiled. "I don't know exactly what it is, but I feel I can truly trust you to help me make this move."
Sue's home sold quickly, and with Joe's help, she arranged for an estate liquidator to sell the belongings she no longer needed. He also arranged for a moving company to pack and transport what was needed to Sue's new apartment at the retirement community, and made sure she was content in her new home.
A few days later, Sue's children visited their mother, breathed a sigh of relief that everything seemed under control, that a large project was complete and that - most importantly - Mom was happy, healthy, and safe. Her daughter (who admittedly had been a bit annoyed at Sue's "pickiness" in choosing an agent) smiled and remarked that Sue had made a fine decision in choosing Joe to spearhead the sale and move. "But Mom," Sue's son asked. "How did you make your decision? Why did you choose him?"
Sue dug into her purse and drew out the list of notes she had made while interviewing Joe:
As her daughters looked at the list, Sue remarked "I felt 'OK' with the other agents. They were undoubtedly good at their jobs. But I wanted someone who was good for ME too."
And thus ends the happy story of Sue, a senior whose outlook on doing business mirrors that of most of her generation, nearly all of whom value a firm handshake and "good vibes" as much as they do hard numbers and competency.
As real estate professionals serving seniors, it's important that we understand that what makes for a great partnership, truly is in the eyes of our clients.
In this day and age of being able to shop for anything anywhere, it is really important to know what you’re looking for when you start your home search.
If you’ve been thinking about buying a home of your own for some time now, you’ve probably come up with a list of things that you’d LOVE to have in your new home. Many new homebuyers fantasize about the amenities that they see on television orPinterest, and start looking at the countless homes listed for sale with rose-colored glasses.
Do you really need that farmhouse sink in the kitchen in order to be happy with your home choice? Would a two-car garage be a convenience or a necessity? Could the man cave of your dreams be a future renovation project instead of a make or break now?
The first step in your home buying process should be to get pre-approved for your mortgage. This allows you to know your budget before you fall in love with a home that is way outside of it.
The next step is to list all the features of a home that you would like, and to qualify them as follows:
Having this list flushed out before starting your search will save you time and frustration, while also letting your agent know what features are most important to you before starting to show you houses in your desired area.