Active Adult Communities

2/15/2021 | By Seniors Guide Staff

Many older adults would love to move into a continuing care retirement community (CCRC). Still, they see selling their house as a major hassle, so they put off the move because it’s too frustrating to contemplate.

But for most people, selling their home is a necessary step in getting into a CCRC. They typically need the money from the sale of their house to pay the entry fee. However, if the house doesn’t sell quickly, they may need to take a short-term bridge loan to help with the fee until the property sells.

While selling a house and moving will always be a monumental task (especially if you are downsizing before the move), there is one bright spot in the process: most parts of the country are in a real estate seller’s market, so this timing may be the best time to move into a CCRC.

What Is a Seller’s Market, and How Can It Help You Get Into a CCRC?

A seller’s market comes about when the demand for homes exceeds the real estate inventory. In other words, there are lots of interested buyers but a limited number of homes for sale. And because there are fewer homes available, sellers are in the driver’s seat.

Since homes sell faster in a seller’s market, and buyers often bid up the prices on the short supply of homes, anyone hoping to sell quickly and receive a fair price (often more than the listed price!) can usually accomplish both.

Those needing some of the proceeds from selling their house to pay the CCRC’s entry fee will have the money in a shorter amount of time, and perhaps they will have a bit extra from the higher sales price to put toward moving expenses.

Generate Interest in Your Property

Even though it is a seller’s market, you will be competing with other sellers to attract buyers. To give yourself an advantage in the market, ensure that your house is in good condition, clean, and organized before you start showing it. Set the price at or a little below market value to entice more potential buyers and possibly start a bidding war.

Check All Offers Carefully

Another critical point to remember is that you should review every offer you receive to make sure the buyer is in a strong financial position or is qualified to get funding. A buyer might agree to pay the highest price for your property but cannot afford it. Mortgage lenders will not allow a buyer to borrow more than the assessed value of your home.

If you accept an unrealistic offer and the deal falls through, you will have to put your home back on the market. And if this causes your property to remain on the market too long, it will create doubt in buyers’ minds and give them the upper hand in negotiations.

If a buyer requires financing, you should make sure they have been preapproved for a loan. Preapproval guarantees that the buyer can obtain a loan for a specific amount of money. Also, be on the lookout for offers that include contingencies, such as home inspection contingencies, mortgage contingencies, and home sale contingencies, all of which allow buyers to back out of sales contracts if specific conditions aren’t met.

Don’t Miss Out On This Opportunity as the Best Time to Move Into a CCRC

CCRCs offer units for those older adults living independently but also have assisted living and skilled-nursing facilities. Active seniors can move in and enjoy amenities such as golf courses, libraries, and first-rate dining facilities, knowing that they will receive excellent skilled-nursing care if they ever need it.

Today, with the shortage of inventory in the housing market and low mortgage interest rates for buyers, it could be the perfect opportunity to sell a house quickly (and at the optimum price!) and take up residence in a continuing care retirement community. These market conditions won’t last forever!

Seniors Guide Staff

Seniors Guide has been addressing traditional topics and upcoming trends in the senior living industry since 1999. We strive to educate seniors and their loved ones in an approachable manner, and aim to provide them with the right information to make the best decisions possible.

Seniors Guide Staff