Seniors will be financially secure now
There are mounting costs and you live on a fixed salary.
It is important to make decisions. Are we selling and downsizing the family home into a smaller home or taking the equity and moving into a retirement community or an apartment? -Mistakes To Avoid When Getting A Reverse Mortgage.
Home is for safety!
The next most emotionally difficult experience for a senior, in addition to losing a partner or a close family member, is giving up their freedom by selling their house. Usually, seniors have raised their families and lived life in the safety of their homes, both its pleasures and issues. When struggling to cover their living costs, what do seniors have to do, but don’t want to leave their homes? When realising the limited financial resources available to them to support their elderly parents, adult children are frequently beside themselves.
Examine the statistics
For senior homeowners with considerable equity in their properties, is it prudent to downsize?
We are witnessing what is called “a buyer’s market” today. There are less buyers and a greater inventory of affordable homes in this type of real estate market. Therefore, due to reduced demand, a lower purchase price and higher selling fees can be expected because of the increased marketing costs and the time it takes to sell a home. Many real estate agents have raised their commission rates to cover their higher prices, and these fees will now typically range from 5% to 6% to sell a California home. That means a real estate agent can charge a vendor between $30,000 to $36,000 in commission fees to sell a Los Angeles area home for an average of $600,000. Closing costs and potential state and federal capital gains tax on any net benefit above $500,000 for married homeowners, or capital gains tax for net profit over $250,000 for a single homeowner, are added to these transaction fees.