Making the decision to sell your home can feel like a daunting task. We’ve partnered with realtor David S. Miedema, Owner & Founder of Miedema Realty, to discuss the current market and why it’s the perfect time for seniors to sell their homes and move into a senior living community. Having been in the real estate business since 1993, David comes to us with extensive knowledge on market trends and advice on how to get top dollar for your home!
Talk about the current housing market and its impact on seniors.
The market right now is different than we’ve seen in previous years. While starter homes and specialty homes (residences with acreage, waterfront, etc.) are still selling well, inventory is creeping up a bit and some homes are staying on the market longer. This should not deter you from selling your home though! We are still seeing most homes in West Michigan selling for over asking with the average sale price in Ottawa County remaining steady around $416,000 and Kent County around $378,000. The current market is still difficult for first-time homebuyers, but seniors get the best of both worlds! For a senior, selling your home is under your timeline. As the seller, you have the power here. Most buyers end up giving the seller 45-60 days after close, which provides a smooth transition with much less stress. You’re able to take time packing up your belongings and deciding what your next chapter will look like. Seniors planning to move into a senior living community have the added benefit of being able to sell their home for top dollar, while not having to purchase another home. The profit margin potential for seniors selling their homes is at an all-time high in this market.
Compare the West Michigan housing market to the rest of the country.
West Michigan continues to be an attractive area to live in. While that allows sellers to get top dollar for their homes, affordability has become an issue for buyers. And since most sellers are also buyers, it creates a chain reaction that leads to low inventory. We’re seeing this throughout the country in desirable areas, so do not be discouraged. Many buyers in West Michigan and beyond are finding that they want to live in a certain area but cannot find a home they want due to a variety of circumstances including budget, location, specific wants such as acreage or waterfront, and more.
While this does not necessarily affect seniors directly, interest rates are also something to keep in mind. Currently, interest rates are upper 6% and while I cannot predict the future, I do expect them to lower slightly. It’s very unlikely that we will see 4% interest rates anytime soon, but compared to the rest of the United States, West Michigan is still relatively affordable. With interest rates, we see the chain reaction happening once again…most seniors are either moving into senior living or do not need to take a mortgage out on a house, BUT the buyer of their home will likely need to take out a mortgage and might not want to have that 6% interest rate. When that is the case, the buyer might decide to stay in their current home with the current lower interest rate for the time being.
When is the best time to sell your home in West Michigan?
We always used to tell clients that spring was the best time to sell their homes. In this market, there really is not an “optimal time” to put your home up for sale. With that said, there are a few times of the year that I encourage my clients to avoid. The first being around the holiday season, specifically the month of December. And then the time that I like to call the “dog days of summer.” What I am referring to here is middle of the summer when everyone in Michigan is taking their summer vacations – that tends to be a slower time for the housing market. But then it tends to pick back up in August, as people are wanting to get settled into a home before the upcoming school year. My biggest piece of advice for deciding on when to sell your home is to do so according to your own timeline. If you do not want to move in the middle of winter, then wait until spring or summer to put your home up for sale. Or if you want to enjoy one last summer in your home, make a goal to put that for sale sign up in the fall.
What should seniors do to prepare their home for selling?
The first thing I encourage you to do is have someone who is knowledgeable about the housing market come into your home and give you pointers. This is something that I do with all of my clients, and it really opens their eyes to what a buyer is looking for in a home. The next step would be to declutter your home. Most people have too much stuff and that clutter can really hinder the sale of their home. I always tell my clients that you take the memories with you; no one is going to pay you extra for them.
Most sellers think that their home needs to be completely updated before putting it up for sale. While there are certain areas of a home that I consider “selling points,” not every update is going to give you a worthwhile ROI. Updates that I always recommend before selling a home would be the primary bedroom & bathroom, the kitchen (often referred to as the heart of the home), and the exterior including landscape. Curb appeal can make or break a home sale. Remember, that is the first thing a potential buyer sees when pulling up to tour your home!
Why in this market is moving into a senior living community financially beneficial to seniors?
There are many reasons why moving into a senior living community is beneficial for seniors. While the social benefits of senior living will always exist, the current housing market leads to some really good financial benefits for seniors right now. Most seniors in West Michigan have their homes completely paid off or are close to having them paid off, which means the sale of their home is almost all profit that they see (less any realtor fees, closing fees, etc.). And since homes are selling for top dollar in our current housing market, the profit potential for seniors is at an all-time high. And because senior living communities generally operate under a life lease, seniors making the move into senior living do not need to be concerned about investing much of that profit into buying a home.
What other advice would you give to senior sellers?
Start the selling process sooner rather than later. A big misconception in the real estate world is that this market allows for sellers to just put the for sale sign up in their yard and they’ll immediately be met with multiple offers over asking. In general, that is not the reality of the market we’re currently in and there needs to be careful planning prior to putting your house on the market. I tell my clients to plan on 2-3 months of planning prior to putting their home up for sale. Most times this planning process includes home updates, decluttering, and staging of the home. Remember, the work you put in during this planning period is so we can get you top dollar for your home!
My final piece of advice is for not just seniors, but anyone trying to buy and sell homes in this market. Buying a home is still worth it compared to renting. When you’re paying a mortgage, you’re paying to own something that will appreciate in value. With renting, you gain nothing at the end of your lease term but have still paid a bunch of money for your residence.
David S. Miedema, owner & founder of Miedema Realty, is our recommended realtor here at Sunset Senior Communities. Having been an integral part in selling our final phase at Waterford Place, David has provided advice and sold homes for many of our residents. To connect with David, please call 616.437.4392 or email him at david@davidmiedema.com. If you are interested in exploring senior living options at Sunset Senior Communities, visit our website or call our corporate number at 616.457.2770.