RETIREMENT COMMUNITIES: WHAT YOU NEED TO KNOW BEFORE YOU SELL

Retirement done right, in a community that sparkles with delight.

Getting settled into your 55+ community might have been your long-term goal. Plans inevitably change – and if you’re going to be selling your property in a retirement community, you may be looking for ways to save money.

For a $250,000 house, an agent might charge $15,000 in commissions, which amounts to 5% – 6% of the sale price. Taking the “for sale by owner” route is a great way to save money because you won’t be paying a buyer’s agent. However, active-adult communities require some additional steps when selling. The following information will help you.

Become familiar with the selling guidelines of your community

A property in a community that caters to older homeowners is usually deed-restricted, meaning you are limited in what you can do with the property. Details can be found in your homeowner’s association. There may be rules governing who can purchase your property in your community, such as:

  • There are age restrictions for home buyers, and children may be denied permanent residency.
  • Health and financial questions might also be asked of buyers.
  • "For Sale" signs are not allowed in some communities.
  • There might be an open house, but it is usually not advertised.
  • Parking might be required in designated areas for prospective buyers.
  • There may be restrictions on pets. 

Most restrictions are based on age. The reason is that one homeowner must be 55 or older in order for 80% of owned units in a 55+ community to be occupied, according to the U.S. Department of Housing and Urban Development.

Analyze the selling prices of comparable homes

There is an art to deciding on a listing price: You want to sell for enough to pay off your mortgage and pocket the profits, but at the same time you want to attract buyers and set up a bidding war.
An age-restricted community is typically more popular in areas with a large number of seniors. California, Florida, Texas, New York, Pennsylvania, Ohio, Illinois, Michigan, and North Carolina accounted for more than half of the older adult population in 2018.
Regardless of where you live, you can still get a good selling price. Identify comparable homes for sale in your community by researching recent sales. There shouldn’t be any difference in the number of bedrooms, bathrooms, and square footage between the homes.
A cost-per-square-foot calculation should be performed. Suppose a 1,500-square-foot home sold for $250,000 and cost $167 per square foot. Also, you may be able to find recent sales data in local tax records using free online resources. Your listing price should be based on all of this information.
Listing your home when more people are searching for properties is also a good way to get top dollar. The first two weeks of May are the ideal time to sell most homes in the U.S. Home listings sell for about 6% more during this period.

Get Your Home Ready To Sell

Your home is ready for sale once it has been priced and prepared for potential buyers. If you want to attract more buyers to your home, make sure to:
  • The interior and exterior of the home should be cleaned and decluttered.
  • Improve lighting by replacing light bulbs and adding lamps.
  • Repair minor cosmetic issues.
  • Warm, neutral colors should be used on the interior walls.
  • Make sure the home is photographed by a professional.

Make a flyer for the property and write a summary for it. In addition to highlighting your retirement community’s features, it should give buyers a sense of what living there would be like. If you want to market your open house, hand these out to your guests or use them in your marketing (see below). These details should be included in the flyer:

  • The address of the property
  • The asking price
  • The retirement community charges a monthly fee
  • The photos are large and colorful
  • The home's description
  • The cost of property taxes on a monthly or annual basis
  • The following information is required: your name, phone number, and email address
  • The latest upgrades and special features
  • The square footage of the house and the number of bedrooms and bathrooms
  • The amenities of the neighborhood

How to market your home

In order to market your home to prospective buyers, you need to go where they are – while adhering to the rules of your neighborhood. The following ideas may be helpful:

Put up a “For Sale” sign in your front yard if you can. If your community permits it, post a sign with your contact information. For incoming messages from buyers, create a unique email address and purchase a phone number exclusively for that purpose.

On your local community bulletin board, ask: Where do seniors usually gather? Advertise in your local newspaper or on bulletin boards at gyms, golf courses, and churches to attract your buyer demographic.

Flyers should be sent via snail mail to your friends and neighbors, who may know someone looking for property in your area.

When potential buyers contact you, follow up on their questions via phone call to provide more information. Seniors might appreciate this personal touch.

It might be easier for seniors to view available properties online before scheduling an appointment to view them. You can attract buyers to your listing by creating a website with photos and a video walkthrough. Your property flyer should be included on the website.

It’s wise to keep in mind your other online options: Although some seniors prefer to stay away from the internet, others are active on social media. Invite other social media users to share your listing by creating a Facebook page.

It might take a few open houses or private listings before you receive offers. Once the selling price is agreed upon, you can execute the purchase and sale agreement and close the deal as soon as possible.

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