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[Re/Max Showcase]
[Realtor]


[Real Estate Tips]

TIMELY ADVICE FOR EMPTY NESTERS SEEKING A NEW ROOST

It won't be long before empty nesters are omnipresent. Or at least it may seem that way as more members of the Baby Boom generation celebrate their 50th birthdays and head toward 60, an age they'll begin reaching in 2006.

The phenomenon of couples (and formerly married singles) who are ready to move out of the home in which they raised their children is hardly a new one, but thanks to the demographic heft of the American generation born from 1946 to 1964, it is likely to play an unusually dominant role in the national housing market in the decades just ahead.

The U.S. Census Bureau estimates that by 2025, approximately 35 percent of the nation's population will be 50 or older, versus just 28 percent in 2000.

Indeed, empty nesters aren't waiting for their 50th birthdays to fly the family coop. A growing number are couples in their mid to late 40s, report agents in the RE/MAX Northern Illinois network who have earned the Seniors Real Estate Specialist (SRES) designation.

There are two major groups within the empty-nester market.

One ranges in age from the late 40s to about 60 years of age. They are still fully engaged in their careers and plan to remain so for some time. The second group, consisting primarily of those over age 60, is in the process of leaving full-time work though they may not be contemplating complete retirement.

Empty nesters of 60 and above are less likely to be paying for college or caring for parents than their younger counterparts, according to Pickard. Instead, they are more apt to make a major move, perhaps relocating to a warmer climate. Even if they stay in the same metropolitan area, they may move some distance from their current location or make a major change in lifestyle.

Members of this older group are very convenience oriented. They have a strong interest in being able to walk to restaurants, shopping, entertainment and services, and have been a real factor in the recent success of downtown suburban condominium developments.

Planning carefully, however, is a luxury that many empty nesters can well afford because they are under no real pressure to move quickly. Often, empty nesters start planning their big move years in advance.

Like the other RE/MAX agents interviewed, Donna Lavin, with the Long Grove, Ill., office of RE/MAX Showcase, stresses that, for empty nesters, finding the right new home and selling the old one both can be major challenges. "I urge my typical empty-nester clients to take their time because they probably haven't been in the housing market for 15 or 20 years and don't have a good feel for how it has changed," says Lavin. "The range of housing choices has evolved substantially in that time, and prices are considerably higher. When they start looking, many empty nesters get a sudden case of sticker shock, but they usually recover quickly, especially once they realize how much their own home has risen in value."

Lavin says she currently is working with two couples who are planning for the day when empty nester status arrives. One has been planning for five years, the other for two years. "It is also emotionally difficult to deal with leaving the home in which you've reared your children," she explains. "For many couples, the notion of downsizing means acknowledging the fact that they are aging, and especially for Boomers, that can be difficult."

For those who are or soon will be empty nesters and are contemplating a move, here are some pointers:

  • Start with the big picture, and develop a housing budget. Talk to your accountant, or consult with a financial planner, and consider all your other priorities.
  • Evaluate your residence and what is required to maximize its resale value. However, don't wait until it's time to sell to install new carpeting, repaint the interior or replace the kitchen cabinets. Do those things two or three years before moving so you can enjoy them, too.
  • Determine where you want to go. Will you move out of state? If so, in-depth research is wise. Staying in the area? Decide if you want to remain in your current community or are open to alternatives. Whatever your inclination, consider such issues as access to family, friends, shopping, recreation, entertainment and medical care.
  • Familiarize yourself with the housing market, both to understand what your home might be worth and to see what the alternatives are for your next residence.
  • Make a decision about the lifestyle you want. For example, do you prefer living in a retirement community offering amenities and activities along with lock-it-and-leave-it convenience? Or would you be more comfortable in a traditional mixed neighborhood?
  • What size and type of home do you want? Is it something considerably smaller or a home of similar size but with fewer maintenance responsibilities or fewer stairs? Do you want another single-family home, a townhouse or a condominium apartment? Remember that living in a townhouse or condo means dealing with a community association.
  • Two years prior to moving is a good point to begin dealing with all the little problems around the house that can negatively impact its saleability. Patch damaged walls, spruce up the landscaping, repair leaky faucets, unclog the drains, clean up the basement.
  • Begin dealing with your possessions. What will you take along? What will your children want? What will you donated or sell? It can be a difficult process, so allow ample time.



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