Bruce Nemovitz

So many folks I talk to are perplexed, confused, worried, frustrated and just stuck as to what path to take when considering a move to senior housing. Who could blame them! The news on news channels and other media has been somewhat negative when discussing real estate prospects for the coming months. As we all know, bad news sells papers, viewer ship and internet customers. We have heard a constant drumming of foreclosure, falling prices, and dishonest financing practices. How does one know which way to turn when considering one of the most important moves of one’s life?

First let’s put things in perspective. Foreclosures are worth talking about. But the percentage of properties in foreclosure in our area is a very small sampling of the total number of properties owned. Yet, if one listens to the news 24/7, it would seem half of all homeowners are ready to call it quits and give their home back to the bank! This couldn’t be farther from the truth. Most homeowners today are making their payments on time. Most are keeping the home in good condition. Look on your own block. How many homes are going back to the bank? Probably none to few.

I was present as a Realtor during the 80’s when interest rates were 17%! Can you imagine that? Not only were the rates at ridiculous levels, but there was almost no money available at any bank. Most lenders were shying away from the mortgage market. So, without a financing vehicle, we still sold homes! Yes, we had a steady stream of buyers purchasing homes using alternative methods of financing. We as Realtors took advantage of land contracts (a financial agreement between buyer and seller) and mortgage assumptions (mortgages that allowed a buyer to assume the terms of the seller’s mortgage). The lesson is that there will always be a strong desire for young people to own their first home, as well as home buyers needing to move for reasons of needing a larger home, divorce, death, and many other motivating reasons to make a move.

Today’s interest rates are at about 6%. That is 11% lower than the early 80’s! Mortgage money is plentiful to any qualified buyer with a relatively low down payment (3-5% down, and in some cases 0% down!). Buyers are plentiful as we see in the number of inquiries about our properties. They are being more cautious and are better educated about market prices and tendencies. Therefore, the homes that are selling are priced properly for their condition and location. Major defects are fixed with guaranties. The days of over pricing has passed. An owner should listen to the advice of their Realtor and price the home within 1-2% of an anticipated final sales price.

Now that I’ve put the real estate market fears into proper perspective, you should base your move on your immediate and near future needs. If your home is isolating you and becoming harder to maintain, don’t wait! By waiting, you will just exacerbate your situation and leave you vulnerable for a crisis which may have to be managed by your children. That is not the way you planned for retirement. Enjoy your later years by giving yourself the gift of freedom from worry about maintaining your home. Free yourself from the fear of a health crisis. Change your environment if your home does not match your physical challenges.

The real estate market will always be moving in one direction or the other. Trying to time the market has never worked. Try to look at your entire investment in your home from the time of purchase to today’s prices. You may find that your home value has done very well over the years and that trying to time a 10% move either way is ludicrous! Look at the big picture and enjoy your retirement or as some of my successful senior clients call it….re-inspirement!

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!