How Seniors Can Navigate an Ever-Changing Real Estate Market

As part of Toronto, Etobicoke real estate seems to move at lightning speed. Prices fluctuate, and it can quickly change from a buyer’s market to a seller’s market and back again. After the last few years, the market can seem even more confusing and tougher to navigate. It can be particularly challenging for the elderly because it’s not just the market that changes. Over the last few years, new technology has transformed how people buy and sell houses. The younger crowd has mostly embraced the switch. However, many older people find it intimidating and often don’t know where to start.

In this guide, we’ll provide you with tips and advice to help remove a lot of the discomfort from your upcoming transaction, whether buying or selling. 

You Don’t Have to Do it Alone

The most valuable advice anyone can give is that you don’t have to face your situation alone. If you can find a real estate agent you can trust, nearly all the stress about your upcoming move will fade away. 

And did you know that some agents have a special designation that qualifies them to assist with the unique needs of seniors? It’s called an SRES® certificate, and it’s designed to help people over 50 navigate the market with ease. The right agent will be by your side at every stage. Whenever you have a question, you can simply ask without worrying about sounding repetitive or feeling judged. In fact, an SRES® agent is so adept at working with the individual needs of seniors you may find they anticipate your questions before you even think of them!

When deciding on a Realtor®, be sure to ask the following questions:

• Do you have any specialized experience or expertise to handle my specific situation?
• How long have you worked in my area?
• What expertise do you have that will allow you to negotiate for my best interests?
• Will you be available to me to answer all of my questions? 
• Can I call you, or do you prefer email or text? (This is an excellent question to ask younger agents. Some will be dedicated to helping you in whatever way you feel comfortable. However, others are more accustomed to texting and may be less accessible by phone.)
• Can you give me recommendations for cleaners, moving companies, lawyers, and anything else I might need?
• Do you have any referrals from other clients in a similar situation as mine?

Selecting the right agent comes down to reputation and credentials. However, never discount how you feel. Someone highly qualified may not necessarily be the right fit. Always listen to your instincts, and choose someone you feel comfortable with.

Want to know more about the SRES® designation? Read more in our post “Why Work With an SRES® Agent as a Senior.“

Simple Tips to Ease the Downsizing Process

For some seniors, the thought of downsizing is a relief. A smaller place with less maintenance means more free time to live life on your terms. For others, the word is associated with nothing but dread. There is so much to do, and it’s easy to procrastinate.

Nothing is ever cut and dried, and most people will feel a combination of dread, excitement, sadness, and relief.

The best way to start is to examine your options and decide what works best given your chosen lifestyle, health, and financial resources.

Do you want more advice on decluttering or preparing your home for sale? Check out some of our other articles below:

• A Practical Guide to Downsizing
• Advice for Seniors Selling Their Family Home
• What is Home Staging?

There Are so Many Options–What’s Your Next Step?

• Sell your house to buy. By far, the most common choice is to sell the family home in favour of buying something smaller, such as a condo unit or a townhouse. 
• Sell your house and rent an apartment or townhouse. Renting has advantages and disadvantages. The primary reason against it is that you will no longer build equity as housing values grow. However, renting provides a sense of flexibility you don’t have when you own a home. 
• Become a snowbird. Do you hate the long cold Canadian winters? If so, consider using the funds from your house sale to buy or rent property in a warmer climate. This is the most glamorous and exciting option, but it will take some planning. A real estate agent who works with downsizers will be a great source of information!
• Move to assisted living. Contrary to popular belief, assisted living is not just for the infirm. Many active retirees love this option because it frees them to travel, pursue their goals, and spend more time with their loved ones.
• Move in with relatives. If you have loved ones nearby, why not consider adding an in-law suite? You’ll each have your own space, but someone will always be nearby if you need assistance. This option can also erase the loneliness and isolation retirees often face without losing any privacy or independence.

Whatever you decide, selling your home at the best possible price will help to ensure your comfortable retirement and golden years. Much of it will come down to factors beyond your control and what the market will bear. 

However, the way you prepare and promote your listing can have a dramatic impact on your final results. Depending on the market, some steps may change, but these tips will help you enjoy maximum success regardless of external conditions.

A Successful Sale No Matter What

• Sell and buy within the same market. Slow markets can be a source of stress, but they don’t have to be. If you sell during a downturn, you’ll likely earn less from your sale than during a busy seller’s market. But if you buy during that same downturn, you’ll pay less for your new home. Understanding the market will go a long way to ensuring a comfortable retirement, and you don’t have to worry about getting your timing perfect. 
• Clean, declutter, and prepare your home beautifully. A house that looks spectacular will typically sell for more than one that appears rundown, messy, or outdated. Your real estate agent will help you decide what repairs to make. Best of all, they can even recommend trusted professionals to handle everything for you!
• Set your price strategically. To get the most from your sale, you must set your price to compete in the current market. This can be one of the most challenging aspects because values fluctuate so much. Ultimately, you want to find that perfect spot that attracts prospective buyers without undervaluing your home. Your real estate agent will perform an extensive Comparative Market Analysis to give your home a competitive edge. 
• Know what to expect. Before listing your house, talk to your real estate agent about how the market is currently performing. This will allow you to set realistic expectations for how long it will take and how much you can earn from your sale. 

The Case for Keeping Your Family Home

Selling your home and moving is the most popular choice for downsizers, but you may not have to. Many people love the idea of keeping the house in the family. If you’re in a financial position to put a down payment or rent your new place, holding your home can help grow your equity. Plus, in this day and age, the high cost of real estate prevents many of the younger generations from being able to buy a home, often through no fault of their own.

Holding on to your property is a great way to leave a legacy to secure your children’s and grandchildren’s future in the long term. In the short term, it can be a great source of passive income to help fund your retirement lifestyle. If you decide to keep your house as an investment, these tips will help keep things on track:

• Many real estate agents work with investors and property managers and can help you find the right tenant for your home.
• Your home should look its best to attract high-quality tenants. However, you don’t need to clean and upgrade it to the same degree as when you are selling. Even the most conscientious tenant will not care for your home as you would.
• Being a landlord offers many financial advantages, but there are also responsibilities. You should be familiar with the Residential Tenancies Act to ensure you stay on the right side of the law. 
• Working with a property manager will reduce some of your monthly earnings. However, it allows you to keep your home, keep building equity and generate passive income without having to do any of the work. The peace of mind is often well worth the investment, especially if you own your home outright.

Buying Your New Home: Ensuring the Right Choice

Deciding your next step when downsizing can be the most challenging part of the entire process. Once you’ve decided, you’ll likely breathe a sigh of relief! Your family members can help you weigh your options. However, only you can make the final call. 

If the time is right to downsize, your next step is to buy your new home. Once again, we have many resources to help you:

• What can You Buy in Etobicoke for Under $1 Million?
• Don’t Make These Mistakes When Buying a Home in Etobicoke
• Why Working With a Local Etobicoke Realtor® is More Important Than Ever

Trusted Professionals to Ease Your Transition

Your real estate agent is your first point of contact for all things related to buying or selling your home. However, the process can be complex, and you will need access to other professionals at some point. If your network is small, don’t worry. A local real estate agent relies on their connections and will happily refer you to anyone you need.

• Tradespeople
• Moving companies
• Cleaning and decluttering services
• Property managers
• Home inspectors
• Real estate lawyers
• Mortgage brokers

A Word About Reverse Mortgages

A reverse mortgage is a loan against the equity of your home that allows homeowners over 55 to retain ownership. You can receive the cash in one lump sum or through a series of monthly payments. For many seniors, it’s a source of much-needed income to help them enjoy their retirement or fund any care they need. Unlike a traditional loan, no repayments are required. Instead, you repay the loan when you move out or sell the home, or the last borrower passes away.

Advantages of a reverse mortgage:

• There are no taxes on any income you receive from your home equity.
• It is a reliable source of income backed by your most valuable asset–your home.
• You don’t have to transfer ownership of your property.
• The money you receive does not impact your other income sources, either through Old Age Security or Guaranteed Income Supplement.

Disadvantages of a reverse mortgage:

• Interest rates tend to be higher than traditional mortgages.
• Your home equity is reduced by both the principal and interest of the loan.
• The value of your estate for beneficiaries will be reduced.

The Benefits of Working With a Full-Service Realtor®

With research, patience, and professional guidance, navigating the fast-changing real estate market becomes much easier for anyone. However, you can take it a step further by engaging a full-service real estate team who will handle every detail for you from start to finish. When working with Thompson Sells, you only get involved when and if you choose to. If you want a completely hands-off experience, we will work tirelessly to represent your best interests at every step. Here are just a few of the tasks we can take care of:

• Cleaning your home, complete with a full declutter. For many of our clients who have lived a long time in their homes, decluttering can take months, if not years, to complete. We typically finish in a few days!
• Arranging for all minor repairs and updates. If a fresh coat of paint or a few hardware upgrades will help add value, we’ll work with our trusted team of professionals to take care of it.
• Staging your home for maximum value. Your home must be visually appealing to prospective buyers if you want to sell at the highest possible price. We are attuned to the market and know how to display your house beautifully.

What Are Clients Saying?

“My partner and I just bought a new property and sold our existing home with Thompson Sells, and we couldn’t be happier with the service we received. They staged our house to perfection and had a well-thought-out action plan. Our house sold in a day for well above our expectations. I would recommend Thompson Sells without hesitation.”–M. David Rice

“Thompson Sells provided us clear and transparent guidance from the beginning to the end when selling our house. We truly appreciate their professionalism but, more importantly, their kind treatment and patience. Their team has a keen eye to make a house look amazing for the showing, and they made this process very easy and painless for us. They were always available over the phone to respond to any question, and always responded with a smile.”–Gerardo Paez

“Thompson Sells are a dream to work with. With their help, my husband and I just purchased a home with very specific requirements. In this market, that is not easy. They took time to understand our needs and went out of their way to find the right property. Their extensive market knowledge and strategic thinking were essential in securing the home in a bidding war.”–Allie Tonkin

Whether you’re ready to begin your next new adventure, or even if you just want to chat about your options, we are here to help! Reach out to us at contact@thompsonsells.com or call 416-450-5900 and we can start the conversation.