Seniors Fears of Selling are Unnecessary
Many seniors are interested in downsizing, or moving to a place that will provide more safety and assistance for their needs. Most likely if the thought has occurred to them, it is time.
As we all know, the media has done an excellent job scaring people with regard to the real estate market and the values of existing homes. Senior seller's have a lot to consider when making this life altering decision. Here are the myths and the truths about the market as it effects seniors:
Myth: I won't be able to sell my house unless I remodel it.
Truth: Every homes sells at the right price, this price is dictated by the buyers in the market place at the time of the sale. Dollar for dollar you will not recoup the fix up costs, and the stress and inconvenience is not worth the slight advantage you might get when selling, and the mess and inconvenience can have a negative effect on the senior seller. My advice to you would be to make sure the home is clean and free of smells, and then price it right. There are a lot of buyers right now who are looking to get into an affordable home, even if it means they will have to fix it up. There are also investors who will buy a home that needs a lot of updating. There is always a market for these homes.
Myth: I will lose money selling right now.
Truth: Many seniors own homes that are costing a great deal to heat, cool and maintain, this cost should be weighted against the cost of a newer, smaller home, and/or an independent or assisted living center. For many seniors these costs are high because of the age of their home and the lack of updating. Add to that yard care, snow removal, groceries, etc. Moving to a newer home, and/or condo can save a lot of money. If they are considering moving to independent living or assisted living you can also add the price of food and transportation to the savings since most places provide these services to their residence. The cost difference is not as high as you would think.
Myth: I will pay a lot of the proceeds in taxes.
Truth: If they have lived in the house 2 of the last 5 years they will not pay taxes on the first $250,000 if it is a single person or $500,000 if they are a couple. There is also the original purchase price that would be considered the "tax base" for the home, and that is subtracted out as well. If one of the spouses has recently died, there is a period of time where you can still use the couple exemption, I would recommend talking with a good accountant to see what the options for the proceeds are. In general people do not pay taxes on the proceeds and/or pay very little.
For answers to other questions please feel free to email us audrey@seniorspecialist.com, or log onto our website at www.utahseniorspecialist.com where you can order a free market analysis on what your home is worth in todays market.
As we all know, the media has done an excellent job scaring people with regard to the real estate market and the values of existing homes. Senior seller's have a lot to consider when making this life altering decision. Here are the myths and the truths about the market as it effects seniors:
Myth: I won't be able to sell my house unless I remodel it.
Truth: Every homes sells at the right price, this price is dictated by the buyers in the market place at the time of the sale. Dollar for dollar you will not recoup the fix up costs, and the stress and inconvenience is not worth the slight advantage you might get when selling, and the mess and inconvenience can have a negative effect on the senior seller. My advice to you would be to make sure the home is clean and free of smells, and then price it right. There are a lot of buyers right now who are looking to get into an affordable home, even if it means they will have to fix it up. There are also investors who will buy a home that needs a lot of updating. There is always a market for these homes.
Myth: I will lose money selling right now.
Truth: Many seniors own homes that are costing a great deal to heat, cool and maintain, this cost should be weighted against the cost of a newer, smaller home, and/or an independent or assisted living center. For many seniors these costs are high because of the age of their home and the lack of updating. Add to that yard care, snow removal, groceries, etc. Moving to a newer home, and/or condo can save a lot of money. If they are considering moving to independent living or assisted living you can also add the price of food and transportation to the savings since most places provide these services to their residence. The cost difference is not as high as you would think.
Myth: I will pay a lot of the proceeds in taxes.
Truth: If they have lived in the house 2 of the last 5 years they will not pay taxes on the first $250,000 if it is a single person or $500,000 if they are a couple. There is also the original purchase price that would be considered the "tax base" for the home, and that is subtracted out as well. If one of the spouses has recently died, there is a period of time where you can still use the couple exemption, I would recommend talking with a good accountant to see what the options for the proceeds are. In general people do not pay taxes on the proceeds and/or pay very little.
For answers to other questions please feel free to email us audrey@seniorspecialist.com, or log onto our website at www.utahseniorspecialist.com where you can order a free market analysis on what your home is worth in todays market.
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