A Downsizing Boomer May Be In For a Surprise

By
Education & Training with House Proud Ottawa-Ontario-Canada
http://actvra.in/r7q

This is a story that is being repeated all over the country.  Boomers want to downsize.  This is hardly a surprise.   The surprise or even shock is that it is going to cost them money to live in less space.  To some, it is so appalling that they have decided to stay in their current home.  

Boomers own their home in the suburbs.  Most are mortgage free.  The home has four bedrooms, three baths, a family room, a rec room in the basement, two or three car garage and a huge yard full of trees and shrubs and maybe a pool.  Okay, there may be variations of this but the essence is - the boomers own family friendly property.  Now......  The kids have finished school and left the nest.  The Boomers are rattling around a big house and find that they live in the kitchen - family room space and their bedroom.  It seems that it is time to move to something smaller.

Here is the rub.  The new home or condo may cost more than the proceeds from the sale of the big home in the suburbs. What?  

  1. The market has reacted to the demand for large condos and retirement homes by placing a premium on the sales price.  Remember, the Boomers are a tidal wave moving through demographic data.  If you, a Boomer, are thinking of downsizing then so are millions of your fellow 1946-1964 birthday buddies. Simple supply and demand economics at work.
  2. Your lovely home is a wee bit tired.  Forty plus years of the same kitchen, with the wrought iron railings, pink carpet, parquet flooring and paneled rec room is telling the story.  Although you have house size you have a house waiting for updating and renovations.  Your home is not competitive.  It is not giving Buyers what they want in updates.
  3. You want to move but you are certainly not going to settle for apples to apples.  Your tastes are now refined and you want granite and a bungalow backing on a golf course with grounds keepers or the whole top floor of a condo in the downtown area.  You are selling a MacIntosh apple to buy an organically grown Star Fruit.   Would you be happy buying the little bungalow down the block from your current home with the need for the same updates as your current home?  Would you be happy with the location?   No?  

After finding out that their home is not the gold mine that they hoped for, many potential Boomer Sellers make the decision to stay in their current home. In some cases, the Boomer will update the family home, adjust the buying expectations and make the move at a later time.  

Photo Credit:  UK Baby Boom and Bust by David Willets

 

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Re-Bloggged 16 times:

Re-Blogged By Re-Blogged At
  1. Carri Schoeller 01/11/2012 12:20 PM
  2. Cheryl Ritchie 01/12/2012 07:45 AM
  3. Jimmy Phan 01/12/2012 09:37 AM
  4. Jill Banks, 01/12/2012 10:44 AM
  5. Bridget McGee 01/12/2012 12:15 PM
  6. Gail Robinson 01/12/2012 01:03 PM
  7. Courtney Cooper 01/12/2012 01:51 PM
  8. Debbe Perry 01/12/2012 08:12 PM
  9. Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572 01/12/2012 08:19 PM
  10. Lyn Sims 01/13/2012 03:52 PM
  11. Ty Lacroix 01/13/2012 04:40 PM
  12. Ellie McIntire 01/13/2012 10:22 PM
  13. Dana Smithers 01/18/2012 11:12 AM
  14. Dale Taylor 01/22/2012 12:15 AM
  15. Winston Heverly 08/26/2012 05:42 AM
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Topic:
Home Selling
Location:
Ontario Ottawa Carleton
Groups:
Advice for Sellers
Canada, eh
House-Proud
Realtors®
BananaTude
Tags:
downsizing
baby boomer
zingers

Comments 189 New Comment

Anonymous
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Rainmaker
790,997
Tim Lorenz
949 874-2247
TIM LORENZ of Keller Williams Realty

It is a sign of the times. The home will go up in value.

January 22, 2012 12:30 AM
Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Barbara-Jo.  You make a good point but I have yet to see a client or friend who went back to what they paid for the home as the basis of the new value.  Too bad,  it should make some owners very happy about their ROI.

January 23, 2012 06:35 AM
Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Dale.  Love your home and are still making good use of it?  I think you will be happy there for a long time.

 

Tim.  Tell clients that what goes down will come back.  Sadly, everyone wants to know when.

January 23, 2012 06:37 AM
Rainmaker
239,133
Tony Lewis
RE/MAX Valencia, Stevenson Ranch, Santa Clarita
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident

Americans are now reflecitn Europeans and having generations of families live together.  Boomers are also looking for a one story home or 2 story with a master downstairs

January 26, 2012 03:08 AM
Rainmaker
574,640
Valerie Zinger
Home Organizer
House Proud Ottawa-Ontario-Canada

Tony.  Just when hou think the nest is empty the kids come back and the parents move in.  

January 26, 2012 07:13 AM
Anonymous
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Valerie Zinger

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