Much has been made of the “rate lock effect” that’s supposedly keeping many senior homeowners from selling their property. The theory is that longtime owners in their retirement years can’t afford to sell because they’d have to give up a low-rate mortgage for one twice as costly on their next property.
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But not all seniors are reluctant to sell because of higher rates, according to Karen Kuchins, a longtime real estate agent for the Long & Foster realty firm. To underscore her point, she cites a suburban couple in their late 70s who can’t wait to let go of their large center-hall colonial.
“This couple -- a former federal official married to a retired schoolteacher -- are extremely tired of owning their big house. They can’t do stairs anymore. They’re also sick of all the yardwork,” Kuchins says.
Why is this couple unconcerned about high mortgage rates? Because they’re moving to a retirement community where they’ll rent rather than buy an apartment. Several friends have already moved to this swanky community, and they’re excited to join them.
More seniors from the baby-boom generation, born between 1946 and 1964, are finally agreeing to sell their big family homes -- a plus for young families eager to trade up from their starter homes. A large number have sizeable equity to liquidate. Moreover, many own their properties free and clear, having paid off their mortgage.
Ralph McLaughlin, an economist for the home listing company Realtor.com, notes the substantial recent increase in inventory of available homes. Within the last 12 months, he says, active inventory of for-sale homes has increased 36.5%.
Of course, many seniors are counting on the proceeds from a home sale to help fund their living expenses in retirement. Hence, they want to minimize any outlays. The good news is that many presale upgrades are low in cost.
“Clean, paint and stage your house before the sale. Spending $10,000 on presale improvements will give you a strong return on investment,” says Kuchins, who heads her own residential construction company. But she rarely advises older clients to embark on major remodeling projects ahead of a sale.
“It’s way too stressful for most seniors to remodel their kitchen or bathrooms before putting their property on the market,” she says.
Here are a few pointers for older owners intent on selling:
-- Realize the crucial role of fresh paint.
Sid Davis, author of “Adding Value to Your Home,” says sellers can recoup at least $3 for every dollar spent on paint and supplies for an interior redo. What’s more, a freshly painted property will change hands more quickly than one without such a cosmetic uplift.
Obviously, you can always hire a painting firm to do the work. But Davis contends that most owners -- including many seniors -- can become competent painters with a little effort.
Davis recommends that novice painters seek out guidance from a local home center store or paint company retailer. Also, the websites of major paint companies can be helpful, such as benjaminmoore.com and sherwin-williams.com.
-- Seek out charities for your excess belongings.
“Decluttering is absolutely vital, because buyers can’t picture themselves living in a crowded house and most will automatically reject such a place,” Davis says.
But the reality is that many owners have great difficulty ridding themselves of items they no longer use. For such sellers, the clearing-out process is easier if they’re assured their surplus items will be put to good use.
Besides giving your extra belongings to charities, you can now find willing recipients through The Freecycle Network (freecycle.org), a service for those seeking to give items to others in the same area. (Membership is free and also allows you to pick up items from others who live nearby.)
-- Eliminate bulky furniture.
“I don’t mind selling a house that’s completely vacant. But if you’re still living there, make sure you take away as much furniture as possible so people can see how large your rooms are,” says Davis, a real estate broker since 1984.
To make a dining room seem larger, he suggests sellers remove china closets, along with extra leaves from the dining room table. Also, eliminate all but four dining room chairs.
In the living room, a few basics are sufficient for home showings: one sofa, one love seat, a couple of end tables and lighting. Ideally, you’ll also remove a television with an exceptionally large screen, at least temporarily.
“One of those huge TVs can really overwhelm a living room or den. The same goes for a giant TV or king-sized bed in the primary bedroom,” Davis says.
Keeping furniture to a minimum makes it easier for would-be buyers to picture how their own furnishings would look in your space.
-- Look into the track record of any listing agent you’re considering.
“It’s surprising how a few statistical measures can tell you a lot about any agent you might hire,” Davis says.
Ask the agent for a printout or email showing his or her sales performance over the past six to 12 months. Each entry should show the number of days it took the agent to sell the property (“days on market”) and how well the sellers did at closing (“list-to-sale price”).
“Also, be sure that the listing agent you select is thoroughly familiar with your neighborhood and has actively sold homes there for at least two years,” Davis says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)