Now that the real estate market has adjusted to market conditions, prices have stabilized and in some areas have fallen 5-10% over the last year. This is always a tough pill to swallow if you are in the market to sell…or is it?

 

For long term home owners, properties were purchased 30-50 years ago at extremely attractive prices. Yes, improvements were made to the home, but adding those additions to the original sales price leaves these owners with significant gains. Our tendency is to look at the very peak of the market and count our dollars at that moment in time. But markets are fluid. There is no law or constitutional amendment that states real estate must appreciate continually for all eternity! We have been spoiled over the years with anticipation of constant upward movement in real estate values. Over the last 30-50 years properties have risen in value in some cases ten to twenty times in value! Where could one ever expect to get return on investment of 1000-2000 percent? If we bought a stock and it appreciated ten to twenty times of the original value, we would be very pleased with the results!

 

Therefore, look at the big picture. Even with the stagnant prices of today, we are still extremely fortunate to have incredible appreciation in our home values. Add to these returns the fact that we as homeowners are exempt from state and federal capitol gains for a single person up to $250,000 in gain, or a married couple up to $500,000 in gain. Yes, that’s just in gain, not the sales price! Much or most of the capitol gain for the average homeowner is tax free! Do we really have the right to complain about the relatively small percentage of lower prices when compared to the huge gain over the last 30-50 years of home ownership? Yet, many long term owners are clinging to the peak prices of 2005. This refusal to accept current market conditions are keeping many folks from selling their homes and moving to the senior housing they so desire. Assuming prices are still moving down at a very slow pace, waiting may mean a slightly lower price and therefore less equity over the next 12 months.

 

Try to look at the big picture. Ask these questions: Are you satisfied with your appreciation and return over the last 30-50 years of home ownership? Do your current conditions at home reflect your physical and mental needs, or would a move to senior housing improve your situation and bring peace of mind and safety? Only you can answer these questions honestly. Don’t use our current market to have one more excuse to procrastinate. If selling your current home is truly the best solution to your current living situation, then be proactive and list your home at a realistic price in today’s market. You’ll be one of the many clients I’ve worked with over the years who have said after their move to senior housing, “I wish I had done it sooner!”

Bruce Nemovitz is a Senior Real Estate Specialist, as well as Certified Senior Advisor. Bruce has sold residential homes in the four county Milwaukee-Metro areas for 30 years. He has just published a book called “Moving in the Right Direction”, a Senior’s Guide to Moving and Downsizing. He works with his wife Jeanne and assistant Boni at Realty Executives Integrity.

Please feel free to call Bruce or his team with any real estate questions, you may have at 262-242-6177, or email at Bruce@BrucesTeam.com. You can go to their website at www.brucesteam.com and view the many articles and important information related to moving and downsizing!