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Pointers for Seniors Pondering Multigenerational Living

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | April 7th, 2021

As America emerges from the pandemic, which imposed severe restrictions on family gatherings, there’s greater appreciation for multigenerational lifestyles. That’s prompting more seniors who can afford to buy a domain near their grown children and grandkids to do so.

Take the case of a retired federal administrator and his homemaker wife. The pair sold their mid-century modern suburban Maryland house, using the proceeds for a brand-new place with double the space. Not by coincidence, they chose to live just two blocks from the home owned by their grown daughter, her husband and the couple’s 2-year-old daughter in North Carolina.

Sid Davis, a Utah real estate broker with seven nearby grandchildren of his own, isn’t surprised by the quest of so many seniors for closer contact with relatives.

“At this point in our history, people are hungry for family connections. All but a few seniors would love to engineer a way to see their kids more often,” Davis says.

As he notes, these post-COVID lifestyle changes come in many forms. But all involve closer family ties --especially to grandchildren. To illustrate the point, he cites the example of one senior, a retiring school principal and neighbor who lives across the cul-de-sac from his home.

“This lady gave $70,000 to her divorced son, a computer programmer, to help him buy a house on our same cul-de-sac. Her goal is to see more of the man’s 12-year-old son. Both the boy and his grandma share a love for hiking and biking,” Davis says.

Of course, not all seniors who aspire to live closer to offspring can afford to buy a nearby home or to assist their grown children financially to make a purchase possible. But an increasing number of retirees with discretionary funds are doing just that.

“In many instances, these are people who upsize to terrifically large houses where everyone in the extended family can enjoy holidays and vacation time together,” says Davis, the author of “A Survival Guide for Buying a Home.”

Fred Meyer, who operates an independent realty firm in Massachusetts, says many retirees who buy property near family are pleased with their decision. But he cautions seniors against planning such a move without first making sure their grown children welcome the prospect.

“Ahead of a move, it’s important to have an in-depth family discussion with all involved,” Meyer says.

Here are a few pointers for seniors pondering a more family-oriented lifestyle:

-- Consider a place with genuine appeal to your family.

If the vision of a family mecca seems attractive to you, Davis says you’ll want a place that’s convenient for as many family members as possible.

“Take stock of your family and their future work plans,” he says.

Perhaps you have a grown daughter who’s made partner in an established law firm near where you wish to buy a home. Or maybe you have a son committed to his medical career in the same area. If so -- assuming good relations within the family -- you can be reasonably confident your grown kids and their families will visit often if you live close by.

But what if your children have careers in the military or foreign service and might even be moving overseas? Then you may want to delay a move until they settle down more permanently.

“You can’t chase your adult children all around the United States and the globe. Better to pick a spot that’s easily accessible for them to travel to you,” Davis says.

-- Select a setting that will attract family vacationers.

Perhaps you and your spouse would like to move to an age-restricted community. Yet you’d also like to see your kids and grandkids as frequently as possible. If so, you could well give a second thought to this plan.

“In reality, children aren’t going to find a whole lot of fun things to do in a retirement community. Rather than moving in with other seniors, pick an alternate area with more recreational attractions for the kids,” Davis says.

He suggests you consider buying a house near a neighborhood swimming pool in an area where lots of young families live. You might also look for an area well suited to fishing, horseback riding or hiking.

“Quiz the kids on the kinds of activities they really enjoy. Also, don’t forget to ask the teenagers what they think,” he says.

One advantage of buying a family-oriented home close to a vacation area is that it’s likely to be well served by a nearby airport.

-- Choose a property well suited to overnight family visits.

Do you intend to upsize to a location that will draw family members for extended stays? If so, you’ll want the right home features to accommodate everyone who comes by.

“Look for a house with at least three bedrooms and, even more important, as many bathrooms as possible. The kids can always double up in the bedrooms. But if you have only one bathroom, you’re bound to have bottlenecks,” Davis says.

Also, he recommends that those seeking to create a family mecca look for large common areas in their upsized property.

“Families love to hang out in a big kitchen with places to sit and talk. That’s why upsizers often go for a large eat-in kitchen connected to an even larger ‘great room’. This is also great for retirees who relish family fests,” Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Homebuyers: How To Cope in a Hyper-Competitive Market

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 31st, 2021

Desperation is influencing the bids of homebuyers in many inventory-tight markets. Both novice buyers and those struggling to trade up to larger spaces are now unnerved by the hyper-competitive seller’s market.

Indeed, some buyers are so determined to beat out rival bidders that they’re tacking gifts onto their offers, says Stacy Berman, a real estate agent who’s sold property for more than two decades.

“People aren’t just going way over list price. They’re also promising sellers lots of tangible incentives. These include season passes to Disneyland and cases of exquisitely fine wine. For sellers with kids, they’re giving away prized video games,” Berman says.

What’s behind the current red-hot seller’s market? Art Godi, who’s headed a family-owned realty firm since 1961, says the historically high demand for larger housing started intensifying last year due to COVID restrictions.

“Suddenly in 2020, your house was no longer just a place to live. It also became an office, a schoolhouse and a restaurant for your family,” says Godi, a past president of the National Association of Realtors (www.nar.realtor).

But even as the yearning for more space has intensified, numerous homeowners have kept their selling plans on hold.

“Lots of would-be sellers are still scared that if buyers come in to see their property, they’ll bring the virus with them,” Godi says.

Predictably, the extreme imbalance between supply and demand has caused prices to ascend dramatically in recent months.

“The trend of accelerating prices that began in June 2020 has now reached its eighth month,” says Craig Lazzara, who tracks housing trends through the widely cited Case-Shiller home price indices.

Multiple bidding wars are now ubiquitous in many areas, and in the wake of a bidding war loss, some wannabe buyers feel so emotionally wounded that they back out of the market indefinitely. But instead, Godi encourages them to regroup and move forward.

“Sit down with your buyer’s agent and a trusted mortgage lender to discuss your options. You may need to be more flexible in terms of your financing or the target area of your search,” he says.

Here are a few other pointers for buyers:

-- Widen the scope of your search by talking to local residents.

Your agent should be helpful in sorting through property listings, making sure you identify the most promising homes available.

But once you have your eye on a particular area, it could be the time to talk to those who know the community best: residents.

“Believe me, most neighbors will bend your ear about their neighborhood. For example, they’ll tell you if they like or hate the local schools and the ages of kids who live in nearby homes,” says Eric Tyson, a personal finance expert and co-author of “Home Buying for Dummies.”

-- Inform yourself on neighborhood property values.

If you’re uneasy about the price tag attached to a property you like, have your real estate agent show you several comparable homes that are also on the market, including those under contract.

Resourceful buyers might even go a step further by asking people who’ve recently bought into the community whether they would mind giving you a peek inside.

“Drop a little note in their mailbox telling them you’re interested in the neighborhood and leave your name and phone number in case they’ll let you come by,” Tyson says.

What’s the advantage of evaluating the price and quality of freshly sold homes? In areas where home prices are rising, the latest sales are the most telling, more so than transactions that occurred months ago.

-- Tour enough properties to make an informed comparison.

Even if the first place you see looks perfect, you’ll want to ponder alternatives to make sure you have a basis of comparison, says Tyson, who recommends that home shoppers look at a minimum of six properties before they buy.

Many sellers are now offering virtual tours, or you can go inside properties with the proper protective gear, including masks and gloves.

“Buyer’s remorse is much less likely if you’ve examined several options -- even if you must do so in a single day,” Tyson says.

-- Contain your emotions before shaping a bid.

Granted, buying a home is now a highly competitive activity in many neighborhoods. But every property should be evaluated on its merits, not on the number of people vying to own it.

Tyson suggests buyers set a ceiling on how much they’re willing to pay for a place before making an opening bid. This is especially important if one partner in a couple is likely to get carried away with a “must have” house they come across.

Jane Fairweather, who sells property through the Long & Foster realty firm, says would-be buyers who’ve lost houses to other bidders are sometimes prone to rush into a deal they might later regret.

“Buying on the rebound without a lot of forethought is not a good idea. Rather, I urge people to recenter themselves until they can create a strategic plan of action to determine their next moves,” Fairweather says.

“Maybe your best decision is to back off from the house-hunting struggle for a short while until you can reassess and decide what truly makes sense for your family,” Fairweather says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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Pointers for Trade-Up Buyers Seeking a 'Forever' House

Smart Moves by by Ellen James Martin
by Ellen James Martin
Smart Moves | March 24th, 2021

Months into the pandemic, a middle-aged couple with two teenagers became fed up with their city condo. With everyone home, it felt way too crowded. So they vowed to move up to a much more spacious suburban place with a yard.

“Sure, it was convenient. But to heck with downsized living. We needed liberation,” recalls the wife, a government consultant.

Given that homebuyers now greatly outnumber sellers in most popular suburbs, the family knew they’d have to scramble to compete for a trade-up property. But they vowed to take on the competition.

“We were determined to win the kind of forever house we’d been fantasizing about,” the consultant says.

It took several weeks for the family to locate the sort of place they were seeking. To beat out rival bidders, they added an escalator clause to their offer, promising to pay $1,000 over the highest bid that came in. Also, the consultant composed a persuasive letter to the elderly seller, telling her how much the family appreciated her place.

“That letter made all the difference because the owner had babied that house for many years, keeping it in exquisite condition,” the consultant says.

Mark Nash, a veteran real estate analyst, doesn’t know the family in this true story. But he empathizes with those now seeking larger quarters.

“These days, trading up to a big suburban place can be nearly as hard as buying a first home,” says Mark Nash, a longtime real estate analyst and author of “1001 Tips for Buying and Selling a Home.”

Steadily rising home prices, combined with higher mortgage rates, are now doubly disadvantaging buyers, says Lawrence Yun, chief economist for the National Association of Realtors (nar.realtor).

“Housing affordability is weakening. Various stimulus packages are expected, and they will indeed help. But an increase in inventory is the best way to address surging home costs,” Yun says.

Here are pointers for move-up buyers:

-- Disconnect emotionally from your current place.

Surprisingly, many who want to sell their property in favor of a better one have a tough time letting go of their current domain, says Sid Davis, the author of several real estate books. The problem is that many who are emotionally attached to their property find it difficult to price realistically -- especially now, when sellers rule in many areas.

“Subconsciously, many sellers think they’re entitled to a higher-than-market price because they love their house and think it’s better than any other place for miles around,” says Davis, a veteran real estate broker.

But given the psychology of buyers, most so resent an overpriced property that they’ll refuse to bid on it. Therefore, a beloved house with too rich a price tag can sit unsold for a period of time, creating a serious snag in the plans of owners who wish to trade up.

“Even now, people who get greedy reduce their odds for an expeditious sale,” Davis says.

How can you loosen ties to your current property so as to be emotionally free to move on to a larger or more luxurious home?

Davis recommends that before setting your list price, you do a brief tour of the trade-up properties available in your price range in the area where you wish to live.

“Looking around at other options can flip the switch in your brain and cause you to get excited about buying that better house,” he says.

-- Always remember resale potential when buying a home.

If you’re trading up to a better property for the second or third time, you may assume your next property will be your last. But statistics show that many owners sell sooner than expected, says Dorcas Helfant, the co-owner of several Coldwell Banker realty offices.

“Your plans are one thing, but what happens in real life is another,” says Helfant, who cites financial and health issues as reasons why many sell sooner than they anticipate.

Regardless of how long you stay, you’ll want a place that not only holds its value but appreciates. That’s why it’s wise to look for features that will gain in value over time, such as those that help keep utility bills to a minimum.

Helfant says good bets for future appreciation are energy savers -- including extra attic insulation, double-paned windows and high-efficiency appliances. In addition, look for an open floor plan that should retain its popularity over time.

“People do want home offices with doors they can close for privacy. But other than that, they dislike chopped-up floor plans with lots of small, self-contained rooms. They favor a kitchen that flows directly into a spacious ‘great room,’” she says.

-- Consider choosing a brand-new home.

All available homes are in short supply in coveted communities, including in new subdivisions. Builders are facing rising costs related to both land and materials. Even so, Davis says buyers who are attempting to acquire a more spacious place can sometimes get a better deal on new construction than on a resale property.

“Look at pricing on a square footage basis. You could be surprised at how far your money will go on a brand-new place when it’s a really large house you’re chasing,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

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