Wednesday, January 23, 2013

What Senior Citizens should know when selling their home

It's a buyer's market. Period. But that doesn't mean it's not a smart decision to sell your home. With interest rates so low, you could purchase a more expensive home and essential pay the same amount per month. Or, for a lot of Senior Citizen's selling their home- they could get a great deal on a new home and pay cash (with proceeds from sale of their current home) or put 20%+ down to have an extremely low month payment.
Over the past 2 years I've helped quite a few Seniors sell their property and then buy a smaller home, a 55+ community home, or move in with family. They have seen the benefit of this type of market and jumped on the chance to have their dream retirement home. 
Here are some planning tips for people ready to retire and sell their home:

1. Seek a Real Estate professional for assistanceIt is important to find a real estate agent knowledgeable about the specialized needs of seniors. Through experience or specialized training and credentialing programs, such agents are familiar with senior housing options, the Housing for Older Persons Act, possible schemes and scams and the implications of various financial transactions. A specialist can guide you in making appropriate sales decisions and refer you to other experts as needed. 

2. Know your homes current value: Lack of knowledge about current prices could cause you to accept much less for your home than it is worth. You also might wait too long to accept a fair offer under the mistaken belief that a higher one may be around the corner.To find out the current price for your home, so that you don't lose out on a sale, review the comparative market analysis (CMA) provided by your real estate agent. The CMA, compiled from data in your region's multiple listing service, includes the most up-to-date information about homes in your neighborhood, similar to yours, that have sold.

3. Investigate Incentives and PitfallsSeek advice from your financial adviser about the consequences of buying and selling transactions. Pensions, IRA accounts, Medicare, Medicaid, Social Security and estate planning could be impacted by a real estate sale. Additionally, should you plan to buy a new home in a retirement community, you could be eligible for perks such as reduced upfront fees and closing-cost assistance, depending on the community.

4. Pack up valuables and memoriesSelling your home presents an ideal time to sort through your belongings and declutter. Decluttering makes a house look spacious and helps potential buyers picture their belongings in the house rather than yours. You may have accumulated many mementos through the years that you may wish to sell, giveaway to family members or donate before moving. While the house is on the market, keep items you wish to retain in storage. Valuables, medications and other personal items should be kept out of sight.

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