The Importance of Home Equity in Retirement Planning | Simplifying The Market

La importancia de la plusvalía en la planificación para la jubilación

A menudo discutimos la diferencia en el patrimonio familiar entre los hogares de propietarios y los de los inquilinos. Gran parte de esa diferencia es el resultado de la acumulación de la plusvalía que experimenta los propietarios de vivienda durante el tiempo que son propietarios de su casa. En un informe publicado recientemente por el nonpartisan Employee Benefit Research Institute (EBRI por sus siglas en inglés), Ellos revelaron lo valiosa que la plusvalía puede ser en la planificación para la jubilación.

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“Baby Boomers”*: El hogar es donde está el corazón

Baby Boomers Find Freedom in Housing | Keeping Current Matters

Durante los próximos cinco años, se proyecta que los ‘baby boomers’ van a tener el crecimiento más grande de hogares que cualquier otra generación durante el mismo periodo de tiempo, de acuerdo con the Joint Center for Housing Studies de Harvard. Veamos por qué…

En el último estudio de Merril Lynch, “Home in Retirement: More Freedom, New Choices” (“El hogar en el retiro: Más libertad, más alternativas”) encuestaron cerca de 6,000 adultos de 21 años y más sobre la vivienda.

Cruzando el “umbral de la libertad”

A lo largo de nuestras vidas, a menudo hay responsabilidades que dictan donde nosotros vivimos. Sea el estar en el mejor distrito escolar para nuestros hijos, estar cerca de nuestros trabajos, o cualquier otro factor que impide la mudanza; el estudio encontró que hay un cambio sustancial que se lleva a cabo a los 61 años de edad.

El estudio se refiere a este cambio como “cruzando el umbral de la libertad”. Cuando en donde usted vive ya no depende de las responsabilidades, sino más bien de la libertad para vivir donde a usted le guste. (Véase la table)

Slide1

Como señalo uno de los participantes en el estudio:

“En el retiro, usted tiene la oportunidad de vivir en cualquier lugar que usted quiera. O puede permanecer donde usted está. No ha habido otro momento en la vida donde tengamos ese tipo de libertad.”

Mudándose

Según el estudio, “un estimado de 4.2 millones de jubilados se mudaron a una casa nueva solamente el año pasado”. Dos tercios de los jubilados afirman que es posible que se muden por lo menos una vez durante la jubilación.

La razón principal para reubicarse que se cito fue: “queriendo estar cerca de la familia” con un 29 %, una cercana segunda razón fue “queriendo reducir los gastos del hogar”. Vea la tabla abajo para ver el desglose de las 6 razones.

Slide2

No todos los ‘baby boomer’ compraron algo más pequeño

Hay una idea falsa que al encontrarse los jubilados con menos hijos en el hogar que ellos instantáneamente desean una casa más pequeña para mantener. Mientras que puede que ese sea el caso de la mitad de los encuestados, el estudio encontró que en realidad tres de diez se decidieron por una casa más grande.

Algunos eligieron comprar una casa en un destino deseable con espacio extra para las vacaciones de las familias grandes, reuniones, visitas extendidas, o para permitir que otros miembros de la familia se muden con ellos.

“Los jubilados a menudo encuentran que sus casas se convierten en el lugar donde la familia se reúne y vuelve a conectarse, particularmente durante los feriados y las vacaciones de verano”.

En conclusión

Si sus necesidades de vivienda han cambiado o están a punto de cambiar, reúnase con un profesional local en bienes raíces en su área que le pueda ayudar a decidir su próximo paso.

*“Baby Boomers” son las personas nacidas entre los años 1946 y 1964. Según el Censo de Estados Unidos el término “baby boomer’ también se utiliza en un contexto cultural.

When Character is More Valuable than Competence

When Character is More Valuable than Competence | Keeping Current Matters

Today we are pleased to have Nikki Buckelew back as our guest blogger. Nikki is considered a leading authority on seniors real estate and housing. Enjoy!

It was her 80th birthday and as Sue’s family gathered around in celebration, she announced a major decision. After years of toying with the idea, she had come to the conclusion that now – yes, now – was the proper time for her to move into a continuing care retirement community (CCRC).

Although they were a bit surprised, Sue’s two adult children (both seniors themselves) nodded to each other and expressed relief that their mother would have access to the support and care she needed. Both admitted to a bit of worry about her living alone since their dad died, especially as they both traveled extensively and were not available to see her or care for her on a regular basis.

But, of course, they all realized that such a move would require a massive commitment of time and energy, with the first necessary step being to find a good real estate agent to help sell the longtime family home.

Sue mentioned that she was acquainted with an agent she had met at church and who regularly sent her mailings. The agent seemed quite nice and professional, had won numerous awards, was active in the community, and owned a variety of impressive-looking credentials. You know, she had a whole bunch of letters and acronyms at the end of her name.

Sue and her children arranged for a meeting with the agent, and while she was clearly competent and well-educated in her field, Sue just couldn’t get past a nagging feeling that something was amiss. The agent was nice enough, but throughout Sue’s entire life, she had tended to gravitate toward doing business only with those to whom she felt some sort of connection. Perhaps it was something she had learned from her father, a man who valued relationships in business dealings as much or more than mere competence. Not only did she want help, but she also wanted to feel a special sort of bond and trust.

The practice had served her well throughout life and now – with such an important transaction – she wasn’t about to change her approach.

Sue scanned the yellow pages, spoke on the phone with a few agents, and even met with another over coffee, but still she couldn’t find the sensation of trust and comfort she desired. She even did a couple of quick internet searches leaving her feeling confused and frustrated. It occurred to Sue’s daughter that perhaps the CCRC that was to be Sue’s new home would be able to provide a recommendation for a good agent. Indeed, they did, and that’s when she met Joe.

Joe was different

He arrived at her home and immediately the two hit it off. Sue hired Joe to list and sell her house and as he began to take his leave, Sue touched him gently on the arm and said “Thank you, Joe. You are different than other agents I’ve met with,” she smiled. “I don’t know exactly what it is, but I feel I can truly trust you to help me make this move.”

Sue’s home sold quickly, and with Joe’s help, she arranged for an estate liquidator to sell the belongings she no longer needed. He also arranged for a moving company to pack and transport what was needed to Sue’s new apartment at the retirement community, and made sure she was content in her new home.

A few days later, Sue’s children visited their mother, breathed a sigh of relief that everything seemed under control, that a large project was complete and that – most importantly – Mom was happy, healthy,  and safe. Her daughter (who admittedly had been a bit annoyed at Sue’s “pickiness” in choosing an agent) smiled and remarked that Sue had made a fine decision in choosing Joe to spearhead the sale and move. “But Mom,” Sue’s son asked. “How did you make your decision? Why did you choose him?”

Sue dug into her purse and drew out the list of notes she had made while interviewing Joe:

When Character is More Valuable than Competence | Keeping Current Matters

As her daughters looked at the list, Sue remarked “I felt ‘OK’ with the other agents. They were undoubtedly good at their jobs. But I wanted someone who was good for ME too.”

And thus ends the happy story of Sue, a senior whose outlook on doing business mirrors that of most of her generation, nearly all of whom value a firm handshake and “good vibes” as much as they do hard numbers and competency.

Bottom Line

As real estate professionals serving seniors, it’s important that we understand that what makes for a great partnership, truly is in the eyes of our clients.

Non-Traditional “Retirement” Metros Becoming Meccas for Older Adults Who Want to Age in Place

Our guest blogger today is Nikki Buckelew. As the Founder and CEO of the Seniors Real Estate Institute, Nikki brings great insight into the Senior Market.

It’s probably only natural for real estate agents to assume that most boomers or retirees bent on moving to a new city to enjoy their golden years will be on the trail to Florida, Arizona, or some other state blessed with warmth and plenty of sunshine. And those states are probably the ones best situated to offer plenty of age-in-place benefits, right?

Nope.

When a boomer or senior who’s open-minded about where they wish to move and retire searches Google for the best cities to age in place or best cities to retire, they finds some spots that are a bit out of the norm, but quite intriguing nonetheless.

Places like Sioux Falls, SD; Provo, UT; Iowa City, IA; Bismarck, ND; Columbia, MO; Omaha, NE; Madison, WI; and Boston, MA top the list.

As adults 55+ begin to contemplate their future and plan for a possible move, they are hearing more and more about the importance of preparing to age-in-place. They already know they hope to live in their own home, independently, for as long as possible. And the cities listed above – plus many other non-traditional retirement options – are receiving plenty of attention as go-to spots for their aging-in-place benefits in the form of quality healthcare, accessible transportation, government initiatives in building the city as senior-friendly, and a number of other indexes.

The Milken Institute, a non-partisan think tank, compiled a list in 2012 of the 259 Best Cities to Age Successfully. Another ranking is due later this summer of 2014. It divided the rankings into “Large Metros” and ‘Small Metros,” with Provo, Utah topping the Large City list and Sioux Falls the Small City rankings.

Others in the Top 10 of Large Cities to Age Successfully include Pittsburgh, Toledo, Des Moines, Salt Lake City, and Washington D.C.

Others in the Top 10 of Small Cities to Age Successfully include Rochester, MN, Ann Arbor, MI, Missoula, MT, Durham-Chapel Hill, NC, and Gainesville, FL.

See the entire list here and learn more about the Milken Institute’s approach to promoting aging-in-place awareness: http://successfulaging.milkeninstitute.org/bcsa.html

Frankly, if I were a real estate agent or broker in any of these top cities (and even many further down the list), I’d be going full-bore to make sure I was positioned to capture as much of this older adult segment in my town as possible. Yes, older adults will purposefully be moving to my city and I should be the one to serve them and find a stellar house for them to buy. That would include promoting my area’s dominance as a haven for older adults, while working to ensure that I had the knowledge to properly help them. And oh yeah. Since older adults from outside the area will be searching online for information about my city, I’d want to make sure that I popped up front and center on Google as an expert in real estate for boomers and seniors in my town.

Simply put, lists like this give you plenty of marketing power – plus motivation – to grab a huge segment of business in your market that perhaps you never even knew existed.

Rethinking the 55+ Market

We are excited to have Nikki Buckelew back as our guest blogger for today. Nikki is considered a leading authority on seniors real estate and housing.

Mature Couple at ParkSomeone said to me recently, “Sixty-five is the new forty-five.” We chuckled, but the more I thought about it, the more I found myself in full agreement.

With more and more people working beyond traditional retirement age and the advances in modern medicine, the lines between middle and late adulthood are becoming a bit blurred.

What makes this relevant in the world of real estate?

As our population ages, we will see more and more organizations dedicating their marketing efforts toward the “senior” demographic. You have read previous KCM blogs about the various designations agents can earn for this specific purpose, and undoubtedly you have already seen real estate professionals in your market professing to “specialize”.

Reality check — not all seniors are the same.

Just as with using any label, we run the risk of putting people into a category when they may or may not actually belong there. This is especially true of the senior segment.

Despite the label of “senior,” there are 3 distinct types of moves you may encounter as a real estate professional — all three involve seniors, but they aren’t based necessarily on age. You see, age is not a good predictor of relocation. Instead, people generally make changes in residence based on life circumstances.

Listed below are the three primary types of moves made by those labeled as seniors:

Move #1: Amenity-based

These individuals and/or couples are seeking a certain type of lifestyle and their home is only one component of a much larger picture. When looking to sell, they are usually transferring their equity from one home to the next and can usually either pay cash or put a significant down payment towards their purchase. Depending upon employment status, they may be moving across the country for more appealing climates or seeking a place near an airport making it easier to commute. Some are moving closer to kids and grandkids, while others are moving to destination locations where the family can enjoy visiting.

Social engagement, including quality family and friend connectedness, are key decision-making elements.

Move #2: Anticipatory / Planning

As people age, they may begin to experience changes in personal health status or become the caregiver of a spouse requiring additional care. When this occurs, people may find their current home unmanageable or no longer suited for their current situation. Moving means simplifying and making preparations for future care needs and support. With this type of move, seniors are typically looking to either buy or lease a property with minimal maintenance, accessibility features, and in close proximity to quality healthcare. Family members and adult children may be called upon at this stage to assist, and will often have some influence in the relocation process.

Access to formal and informal support, as well as low maintenance and accessibility features, are primary decision-making factors.

Move #3: Needs-based

While most people intend to live independently until they die, unfortunately, this reality isn’t always possible. As health declines to the point where more support is needed than can be provided for within the person’s home and community, relocation is necessary. This move may involve selling the personal residence and relocating to a senior living community or into the home of a family member. In many cases, needs-based moves involve caregivers and/or family members as additional decision makers. Late-life moves involving frail elderly or those experiencing illnesses or disease processes can be highly emotionally charged and necessitate a level of empathy in addition to real estate competency.

Timing, health status, and caregiver support are keys to decision-making.

As you can see from these various different types of moves, not all seniors share the same housing needs and goals. And while specializing in the 55+ housing market appeals to many, there are actually many sub-niche opportunities within the senior segment worth exploring.

Regardless of whether you choose to make working with mature home buyers and sellers a part of your overall business plan, with at least 1 in 4 home sellers over the age of 65, there is little doubt you will work with older adults in the course of your general real estate practice. When encountering these opportunities, it will serve you well to consider the three types of moves listed here and evaluate your value proposition accordingly, so that you can be the very best agent possible for your mature clients.