We’re sure you’ve read about it: baby boomers aren’t moving and they’re wrecking the real estate market. They’ve decided to age in place, just when so many buyers want to buy a home.
To read real estate news about the baby boomer generation one would think the entire generation is passively aggressively thumbing their nose at both home buyers and real estate agents.
However, that reporting may not be entirely accurate. After all, who was it that kept the housing market afloat during the recovery from the Great Recession?
And, while it’s true that Millennials have a large presence in the housing market (39 percent of homebuyers), the two older generations (anyone 55 and older) make up 37 percent of home-buying pool.
If you haven’t bought or sold a home since the kids were in diapers, you’ll need to brush up on the basics if you plan to sell or buy. And we would love to help you.
1. Carefully reconsider aging in place
“Aging in place.” It’s one of those buzz phrases the media came up with to describe older Americans who “stubbornly” refuse to move and plan to live out their lives in their current homes.
And, many of them do. But many haven’t thought through that process. As the knees start creaking, the arthritis sets in and we become winded carrying groceries up a flight of stairs, reality sets in.
It turns out, that many boomers are realize that aging in place doesn’t necessarily mean aging in this place. According to a recent study by Home Instead Senior Care, one in four boomers are planning on selling their current home and buying a smaller, more age-appropriate one.
You know: one story, less square footage and low-maintenance, inside and out.
2. What will you do with your current home?
Your choices here are limited. You can sell the home (which many older, downsizing Americans plan to do) and use the equity you’ve built up for the new home. Or, you can rent it out and, if the home is paid off, enjoy the monthly income from your tenants.
Renting it out does come with drawbacks, however. Being a landlord, even if you do hire a management company, comes with many downsides. We always recommend that our boomer clients speak with their financial planners before making the decision.
3. Deciding what stuff you really want to keep.
This is the hardest step and the biggest stumbling block for Baby Boomers. You have collected a lot of belongings over the years and may have provided a home for your adult children’s belongings. So you need a plan to sort through things to really hone down to what you want to keep.
I love helping Baby Boomers and Seniors develop a plan to transition to a more carefree and low maintenance lifestyle.
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Senior Real Estate Specialist Certified Divorce Real Expert
Certified Probate Expert Real Estate Collaboration Specialist
SRES, CDRE, RCSD, CPE, CPRES
