How the Housing Market in Chicagoland Affects Seniors

It has been a familiar route for so many homeowners over the years: build equity in the property where you lived for so many years, then sell it for a handsome profit so you can move into that lovely retirement community you had your eye on for so long.

But what if the family homestead does not sell?

Without deep pockets to otherwise fund the right to take up occupancy in that senior lifestyle home, the average senior homeowner cannot make that move.

A high-profile case in point is The Clare at Water Tower, a seniors-only project that launched in 2008. It has unfortunately been forced to file bankruptcy recently, due to lagging sales. The folks who have already moved into the complex will be able to continue in residence, although they will apparently have many empty units around them while waiting for yet more buyers to step up and move in.
It is partly an issue of being able to sell the family home, but likely it is also a matter of having to let go of all that loss in equity in the family home. Any home can be sold in this market (Chicagoland), as long as it is priced according to what the buyers are willing to pay for it. Nonetheless, it is hard to swallow such large equity losses, when the seniors reflect on what their home was worth some 2, 3, 4, or 5 years ago.
It makes the decision a bit harder, perhaps, but it can be done.

Even Uncle Sam Sez So

The years go by, and some things never change. Public opinion polls seem to repeat the news: the general public thinks very poorly of real estate agents as a profession. And I mean VERY poorly. Most people hold real estate agents in low regard. The reasons vary, but the result is truly unfortunate. An unrepresented seller or buyer of real estate can perhaps muddle through a transaction, but at a very high cost (both financial and emotional).

But it's not just ME trying to educate people on the value of finding and using a trusted real estate agent; Uncle Sam also "gets it." In a recent FHA e-newsletter (February 15, 2010), the notion of hiring an agent is promoted as the wise thing to do. To quote: "Most of the fears that buyers have about realtors are just plan false." And then this quote: "...your real estate agent's job is to represent your interest only. They want to get the deal done for you! If you are a happy client, you are likely to refer business to them for doing a good job." Sounds reasonable, right?

The article continues on to suggest that most folks simply don't understand how an agent's role can benefit them. So it seems the FHA and I are promoting the use of a licensed, ethical, and trustworthy agent. Sure, there are some less-than-stellar agents in the ranks, just as there are in any profession. Ever meet a teacher you thought was sub-par, or a doctor? You see my point.

Subscribe to the FHA newsletter for free, read the weekly article, and learn. To find a terrific agent, start asking your friends and neighbors who they would recommend, based on personal experience. Just because a local agent has spent lots of dollars on marketing their brand does not translate into good service to you. It's the person who can serve your needs, not the face in a newspaper ad or on a grocery store cart.