How Seniors (and Their Families) Benefit from a Senior Real Estate Specialist (SRES®)

Couple laughing

This specially-designated REALTOR can save the children of seniors a lot of time when their parents need to downsize

Many seniors who own homes eventually get to a point where their home no longer accommodates them as it was originally intended. They may no longer need the size of the home, be physically able to take care of the home or can afford the cost of maintaining the home. In too many cases, health challenges compress the time needed to plan for a housing transition, find a new home or other living arrangements and/or sell their current home.

The Challenge

The children of seniors will find there’s a plethora of resources, housing options and price points to consider, so finding a residence that is the perfect mix of warmth and proximity to health care providers and facilities while being functionally adequate for the challenges of aging means much time and effort is involved in considering all the options. Senior-specific financial and real estate considerations often must be handled by the children of seniors, while juggling their careers and family life.

The Solution

If your senior parent or other loved-one needs to downsize or find a residence better suited for them, a SRES®-designated REALTOR is best trained to handle your loved-one’s real estate needs. They can sift through the options and present them to your parents, saving you a lot of legwork and time.

Hilary Walker, a SRES®-designated REALTOR on the Atlanta Seniors Real Estate Team, says it best:

“The challenge is that ‘many children of baby boomers’ rarely have the time that is needed to gather all the necessary information about the services that would be helpful to their parent. This means the parent often remains in their ‘ineffective’ situation for longer.  But also, connected to this, is that often the adult child is trying to show the parent that it may be best if they no longer live in the family home that has functional issues relating to the parents’ current health conditions. The other challenge is for the adult child to find and provide solid information to parents without making the parents feel as though their child is ‘babying’ them or trying to take over. Seniors Real Estate Specialists like me can help with all of this.”

To be experienced in serving this demographic, the REALTOR must pass the National Association of REALTORS-designed course. Earning the SRES® designation means the REALTOR specializes in the needs of clients aged 50 and over who are buying and selling real estate.

SRES®-designated REALTORS are knowledgeable about these things and will save you much time by handling them for you:

  • Senior housing options
  • Factors and trends in housing, retirement income and finance specific to those 50 and over
  • Identifying and protecting seniors from finance, mortgage and loan scams that target this demographic
  • Housing for Older Persons Act (HOPA), senior communities and housing restrictions
  • Counseling strategies to help in life transition planning
  • Using Reverse mortgages, 401k accounts, IRAs and pensions as part of wealth management and to assist in real estate transactions
  • Helping your parent or senior loved-one understand how Medicaid, Medicare and Social Security can benefit their real estate decisions

Atlanta Seniors Real Estate Team provides holistic real estate services for the unique needs of seniors and their families. Contact a Seniors Real Estate Specialist today!

SRES® REALTORS also have partners in the Senior Care Market who help make the transition to a new home as easy as possible for all concerned. Kaye Ginsberg, founder of Peace of Mind Transitions, a full service seniors relocation partner, explains:

“Senior Move Managers take the stress out of moving. We work together with the senior and their family to decide which belongings will go to the new home, then work with them to manage what to do with the rest (sell, donate or dispose). We coordinate packing and moving and then completely unpack the new home; including hanging pictures and making the beds.”

Ginsberg said, “The first step is for the senior to identify what they will take with them and what they would like family members to have – and that’s the hard part. This is the first time in history that we have two generations downsizing at once – and none of the “children” want any of their parents’ belongings. Which means that many items like china, crystal and silver are not holding up in value for re-sale. Perhaps it would be better to focus on what I like to call ‘Doing Good While Downsizing’.  Why not donate items to a local charity who will make sure your items go to people in need who will appreciate them?”

Ginsberg says it’s good to strategize early: “It’s never too early to start thinking about the future.  Even if you’re not ready to move now, it is wise to know what your home is worth and what other housing options are available for you.  And it is certainly never too early to start thinking about what you want to do with your lifetime accumulation of possessions.”

Download “Your Guide to Stress-Free Rightsizing and Relocation” 

 

Sources:

National Association of REALTORS. SRES

National Association of Senior Move Managers. Your Guide to Stress-Free Rightsizing and Relocation 

 

 

 

 

3 Questions for Seniors Looking to Buy a New Home

Homes in the Autumn
 Photo Credit: Pixabay.com

 

 

When we think about purchasing a new home, we often think about young families looking to expand or people looking to move to a different part of their city (or even across the country). Once a person hits retirement age, we don’t think about them purchasing a new home.

Seniors have plenty of reasons to purchase a new home. There’s no rule that says you’re locked into the house you’re living in once you hit a certain age. If you’re a senior in the market for a new home, there are three basic questions you need to answer before you get started.

Why am I purchasing a new home?

The reason why you’re purchasing a new home should drive the type and location of the house you choose. Many seniors choose to move in their later years to downsize. Maybe you’re living in the house you’ve lived in for decades and it’s simply too much room for you now that the kids are gone. If so, you need to look for a low-maintenance home. Maybe you’re moving because of mobility reasons. If so, you need to make sure that the new home you buy is set up for prime accessibility. Maybe location is what matters most, as you’re moving to be closer to family. Figure out your prime motivation for moving and tailor your home search around it.

How am I going to finance it?

For some seniors, this usually is not a tricky subject. If you’re financially stable, you may choose to finance your new home in the same way you financed your last home – with a standard mortgage.

But for some seniors on fixed incomes, the question of paying for their new home is a little more complicated. It is worrisome to think about paying a large monthly mortgage payment on a fixed income, and worse yet, dipping too heavily into retirement savings.

One popular way to finance a new home if you’re over 62 is with a Home Equity Conversion Mortgage (HECM), a type of reverse mortgage. Here’s how the American Advisors Group describes it:

“With the HECM for Purchase reverse mortgage, the borrower provides a down payment using the sale of the previous home or other savings.  The equity earned through the down payment and the new home’s value is used to calculate the reverse mortgage loan amount.  During this process, borrowers may need to meet the loan-to-value ratio requirements with a significant down payment and provide verification of personal income and funds.  All or part of the reverse mortgage funds then cover the remaining cost of the home, just like with a traditional mortgage.

The benefit to financing with a reverse mortgage is that instead of paying the loan back every month over time like a traditional mortgage, reverse mortgage repayment is deferred to when the loan matures.”

This means no monthly mortgage payment – payment is due when the house is sold or the inhabitant dies. Keep in mind that you’re not building up equity in that second home, and there could be very little left in equity once the reverse mortgage is paid off.

When you’re thinking about financing, you should also consider what repairs or improvements will be needed in the home for it to be a safe and comfortable place for you to live as you get older. For example, what will the cost be if the bathroom needs a remodeling for it to be more accessible for you or your spouse? Or are there outdated appliances in the home that will need to be replaced soon? It’s important that you’re clear on all the home’s needs before making a buying decision as repair costs can add up quickly.

Remember, you do not have to make these tough financial decisions on your own. It’s best that you talk to a financial advisor to come up with a budget for your new home and to figure out the best way for you to finance your new home.

How am I going to handle the move?

Moving is tough on anyone – regardless of age – but it can be especially taxing on seniors. You need to plan. Don’t be afraid to de-clutter. Hold yard sales and distribute meaningful items to friends and family. Slowly pack boxes as to avoid injury and strain. For most seniors, it may be best to hire professional movers if you don’t have family members that can help you move.

See How Seniors (and Their Families) Benefit from a Senior Real Estate Specialist (SRES®)

 

 

Guest writer: Jim Vogel, at Elderaction

 

If your senior parent or other loved-one needs to downsize or find a residence better suited for them, a SRES®-designated REALTOR is best trained to handle your loved-one’s real estate needs. PEMCO Realty has a team of Senior Real Estate Specialists ready to assist you or your parents to make this a smooth process.