Ten years ago, a retired U.S. diplomat bought a small Cape Cod in a friendly tree-lined neighborhood within walking distance of a library, post office and grocery store. Then 60, he imagined living there happily for the rest of his life.
But in retirement, the man’s health deteriorated. Unable to climb stairs in his house, he was forced to move to a retirement community offering assisted living services.
Eric Tyson, a personal finance expert, doesn’t know the diplomat in this true story. But he’s not surprised to learn how intensely the diplomat pushed back against the need to move.
“Many boomers mount a ferocious resistance to leaving their homes," says Tyson, co-author of "House Selling for Dummies.”
As it turned out, under intense time pressure, the diplomat’s grown children helped him navigate the transition. They scouted out the best available assisted living apartment. They also decluttered his house, packed his belongings and worked with a trustworthy real estate agent to list the property. Three days after going on the market, the place sold well above asking price to a married couple with two preschoolers.
Though the financial results of the sale were positive, the emotional toll on the family was needlessly heavy. Though some involuntary home sales can’t be anticipated -- like a sudden health crisis -- those involving a divorce or job loss typically allow more time for advanced preparation.
“The need to sell your home can be a major blow to your self-confidence. So, it’s ideal to pace yourself for the transition with as much time as possible,” Tyson says.
Here are a few pointers for those who must sell involuntarily:
-- Focus on the positives of selling in the current market.
Ashley Richardson, who sells homes through the Long & Foster company in Maryland, says there are positives for sellers who must move at this stage of the market cycle.
“The inventory of available homes is extraordinarily tight now. That gives you excellent odds of doing well on net proceeds,” she says.
George Ratiu, manager of economic research at Realtor.com, the home listing service, says that across the United States, active inventory dropped 22% from a year ago. Meanwhile, the median listing price grew by 14%.
-- Plan ahead to the extent possible.
Donna Eichelberger, who heads a firm that helps seniors with real estate transitions, says many of her clients wait until their early 80s to lay plans for a move. At that point, a health crisis can force the need for a move on an urgent basis.
“Often, it’s a fall down the stairs that compels people to make an urgent move ... Their doctor tells them they can no longer live in the place they’ve owned for years,” Eichelberger says.
The most successful downsizers are those who anticipate the need to move well in advance of a possible health crisis.
“The happiest people are the ones who embrace change rather than resisting it,” she says.
-- Consider hiring a “move manager.”
Donna Leanos, an agent who’s sold homes for more than three decades, recommends that those faced with an involuntary sale seek help from a firm that specializes in assisting with smooth transitions. Known as “move managers,” such companies offer downsizers a comprehensive package of services. They help cull through the sellers’ possessions and arrange for the sale or donation of valuables. In addition, they help handle the logistics of the move.
How can you find a move manager in your area? One way is through the website of the National Association of Specialty and Senior Move Managers: nasmm.org.
Those who need less extensive help to downsize might wish to use the services of a professional organizer, if only to help develop a step-by-step action plan. A local organizer can be found through the National Association of Productivity & Organizing Professionals (napo.net).
-- Give yourself ample time for purging.
Vicki Norris, a former real estate agent and professional organizer, says it can take up to 24 work hours to declutter the average-sized room. To avoid becoming sidetracked, she says many home sellers need allies.
“When you have to downsize, your whole life is upside-down. It’s tremendously stressful. So, it’s good to have people there to keep your move in perspective and perhaps to lend some humor to the situation,” says Norris, author of “Restoring Order to Your Home.”
Are you unable to afford professional services for your move? If so, Norris suggests you request that friends come by to at least lend moral support.
-- Survey family members on which items they would value.
Older downsizers often hang onto nostalgic items they believe their grown children might want “someday.” But Norris says many parents believe their offspring will want more things than they do -- including their childhood storybooks and elementary school art.
Norris suggests that downsizers ask grown children what items they would prize.
-- Donate excess belongings to a charity of your choice.
As they plow through their property room by room, most downsizers encounter many items that crowd their space and would make it harder to market their property. For instance, they may have an extra sofa or oversized bedroom furniture that won’t fit in their new place.
Whenever possible, Norris encourages donations of serviceable items to a nonprofit institution that will put them to good use. For instance, you could donate unused musical instruments to a school serving low-income families.
“Contribute to an organization that shares your values. That gives you a lot more peace of mind about letting go,” she says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)