Smart Moves

A couple in their 60s -- a psychiatrist married to an attorney -- began daydreaming about retirement the day their youngest child graduated from high school. They wished for the freedom to travel abroad and enjoy waterfront living in a low-upkeep condo overlooking Baltimore’s Inner Harbor.

After selling their large, upkeep-heavy colonial and buying a waterfront condo, the couple was pleased with their new digs and relished the freedom from maintenance chores, says Ashley Richardson, their real estate agent. What’s more, their downsizing maneuver yielded the pair a tidy profit, which is hastening their plans to retire.

“Older people who are open to change about moving are happier in the long run than people who can’t bear to move,” says Richardson, who’s affiliated with the Residential Real Estate Council (crs.com).

Natalie Conrad, a professional organizer and author of “Organize to Downsize,” a step-by-step workbook for those seeking to scale back, says many triggers prompt older owners to sell. One common impetus is a health setback, such as the need for a knee or hip replacement. This forces many owners to face their need for a one-level property that doesn’t require them to climb stairs to reach their bedroom or take a shower.

“Once people start having physical limitations, they begin seeing their big houses differently. Many people wish to live closer to their grown children or go to a retirement community,” Conrad says.

Some housing economists say an increasing number of older homeowners are now rushing to sell due to rising mortgage rates and economic uncertainty as to whether the current strong market is sustainable.

Lawrence Yun, chief economist for the National Association of Realtors (realtor.org), says the current picture for sellers is a mixed one.

“As long as economic conditions maintain current levels, there’s still a chance for sales to break out this year. However, with mortgage rates trending higher, it will only happen if supply levels improve enough to cool the speedy price growth in a majority of the country,” Yun says.

Here are a few other pointers for downsizers:

-- Search for a location that feels right to you for positive reasons.

Lin Schreiber, a life coach for retirees, says, “There comes a point in many lives when there’s a yearning to reorder priorities. People downsize for the chance to pursue other options.”

As they head toward retirement, many people focus primarily on the annoyances and aggravations they’ll escape once they’re liberated from their job. But in addition, Schreiber urges clients to concentrate on the options that await them as they reinvent their lives.

“For example, if you think you’d like to live in Costa Rica, travel there and talk to retired people about what life is like in that country. Give yourself permission to explore all the possibilities that interest you before making a decision,” Schreiber says.

-- Think through whether you’d like to live in a community with lots of rules.

Schreiber and her husband, a software specialist, once lived in a planned community where the homeowners association dictated many lifestyle rules. But after just three years there, they were so rattled by all the dictates that they moved to a more modest townhouse with friendly and easygoing neighbors.

Looking back on their experience, the couple wishes they’d investigated further before buying into the planned community, where Schreiber says neighborhood leaders proved bothersome and intrusive.

“People there were always quibbling over small disputes about the appearance and operation of the community,” she recalls.

Though she allows that some people appreciate a strict neighborhood association that can help protect their property values, she says others find life in such a community unpleasant.

Schreiber urges those making a major housing transition to ask questions about the internal culture of a community before they buy a home there -- to ensure that it’s in accord with the lifestyle they have in mind.

-- Think through the role you want your adult children to play going forward.

Lots of downsizers approaching retirement have children in their 20s or older. And according to Conrad, these retirees vary widely on the role they’d like their offspring to play in the next phase of their life.

“As they get older, some people become weary of the child-raising thing. Yet other empty-nesters feel a void in their lives and wish to see more of their grown kids and grandkids,” she says.

Those who want their adult offspring to play a major role in their lives are likely to be happier moving to a property with enough bedrooms to accommodate their kids during overnight visits. But those who wish to discourage their children from lengthy stays -- or from moving back home -- might prefer a small condo with just one or two bedrooms.

“This is a very personal choice, but one you should think through before moving,” Conrad says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

The house was a bland, 1980s McMansion in the suburbs with nothing special to make it stand out. Even so, its owners, both senior-level financial consultants in their early 60s, wanted to sell quickly to take job offers overseas. Hence, they accepted their real estate agent’s advice and hired a home stager to make their place show-worthy.

“A professional stager can hand-over-fist get sellers more money than they could get for an unstaged home,” says Stacy Berman, the seasoned real estate agent who represented the couple.

Berman, who’s been selling property since 2002, says talented stagers can give a nondescript, older home “that wow factor” -- making it more appealing to younger buyers.

In the case of the financial consultants’ home, all the rooms had been painted in a hodgepodge of different colors, including one bedroom in purple. Wall-to-wall carpet was hiding handsome hardwood floors. And the entire property was crammed with excess furniture.

The whole staging process -- painting, ripping up the carpet, etc. -- was completed in a few weeks for a couple of thousand dollars. Once done, the property sold quickly and for $50,000 over list. Indeed, it fetched the highest price ever recorded for a house in the couple’s neighborhood.

Sid Davis, a real estate broker and author of “A Survival Guide to Selling a Home,” says savvy sellers realize that even in hot markets where demand is very strong, sellers are very picky.

Of course, not all sellers can afford the services of a professional stager beyond a single one- or two-hour consultation. Here are a few tactics for sellers to keep their presale expenses under control:

-- Grasp the power of a paint brush in your hand.

Davis says home sellers can recoup at least three dollars for every dollar spent on paint and supplies for an interior redo. What’s more, a freshly painted property will change hands more quickly than one without such a cosmetic uplift.

Obviously, you can always hire a painting firm to do the work. But Davis contends that most homeowners can become competent painters with a little effort.

Davis recommends that novice painters seek out guidance from a local home center store or paint company retailer. Also, the websites of major paint companies can be helpful.

-- Donate excess belongings to charity.

“Decluttering is absolutely vital because buyers can’t picture themselves living in a crowded house, and most will automatically reject such a place,” Davis says.

But the reality is that many homeowners have great difficulty ridding themselves of items they no longer use. For such sellers, the clearing-out process is easier if they’re assured their surplus items will be put to good use.

Besides giving your extra belongings to charities, you can find willing recipients through The Freecycle Network (freecycle.org), a service for those seeking to “gift” items to others in the same area. (Membership is free and it also allows you to pick up items from others who live nearby.)

-- Place large pieces of furniture in a neighbor’s garage or a storage unit.

“If you’re still living in the house you’re selling, make sure you take away as much furniture as possible so people can see how large your rooms are. Big furniture distorts the look and scale of any house,” Davis says.

To make a dining room seem larger, he suggests that sellers remove china cabinets, along with extra leaves from the dining room table. Also, eliminate all but four dining room chairs.

In the living room, a few basics are sufficient for home showings: one sofa, one loveseat, a couple of end tables and lighting. Ideally, you’ll also remove a television with an exceptionally large screen -- at least temporarily.

“One of those huge TVs can really overwhelm a living room or den. The same goes for a giant bedroom suite that can dwarf your master bedroom,” Davis says.

Keeping furniture to a minimum makes it easier for would-be buyers to picture how their own furnishings would look in your space.

-- Ask your listing agent to conduct open houses for other local agents.

Davis believes traditional open houses offer few advantages for sellers.

“Honestly, the big winners from most classic open houses are the agents who hold them. That’s because they often pick up new clients during open houses,” he says.

A real estate broker since 1984, Davis recalls just two cases in which he found a buyer for a property through a traditional open house.

“Usually it’s just curiosity seekers and unqualified buyers who come through the average public open house,” he says.

Davis says a better way for your agent to promote your property is through special events designed solely for real estate pros, not the general public. Such “brokers' opens” can be very helpful in spreading the word about your property.

“The more agents who troop through your property, the better. If your home shows beautifully, they’ll spread the word and bring in their own home-buying clients,” he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

After her husband died three years ago, an engineer vowed to hang on to the lakeside house the couple had custom-built two decades earlier. But since then, the costs in money and energy for upkeep have mounted -- giving the widow a compelling reason to sell, and sell quickly.

There’s much to reassure the woman. Property values in her area have risen sharply, and lakeside homes are especially coveted. Still, the widow is nervous about the current market. That’s because the gradual rise of mortgage rates -- coupled with lagging income growth -- mean fewer prospects can now afford a place like hers.

Skylar Olsen, a senior economist for Zillow, which tracks real estate throughout the country, understands the anxieties of the woman in this true story. But as long as demand for property in prime areas continues to outstrip supply and the overall economy stays strong, she says the engineer’s prospects are excellent.

“For people who are downsizing, I don’t see any reason to be in a crazy rush to sell,” Olsen says.

Even so, she says all sellers of high-end properties need to be especially careful to create a reasonable pricing strategy.

“In the current market, if you price right, multiple bids are likely. But if you overprice, people will think you’re a little delusional, and that won’t work out well for you in the end,” she says.

Here are a few pointers for sellers:

-- Understand that those who ask too much often get too little.

Kathy Zimmermann, the broker-owner of a Re/Max real estate office, says accurate pricing can be complicated in a neighborhood like the engineer’s, where properties vary widely in style and size.

“Buyers aren’t going to waste their time trying to negotiate with someone asking way too much,” she says.

Accurate pricing is complicated, especially in areas where property valuations are in flux. In such neighborhoods, an examination of recent sales for similar homes -- known as “comps” -- may not give you obvious answers about how much to ask.

But accurate pricing is all the more important at a time when buyers are increasingly fearful they’ll overpay.

-- Realize that open houses don’t always guarantee results.

Many sellers of high-end homes that show well think of open houses as a panacea for any marketing woes they face.

But real estate specialists, such as Dorcas Helfant, a former president of the National Association of Realtors (realtor.org), says public open houses provide little utility to owners trying to gain momentum toward a sale.

She says open houses rarely attract serious, well-qualified purchasers. Many who attend open houses are neighbors or people seeking decorating ideas for their own homes, while others are mere wannabe buyers.

Rather than pressing your agent to hold more open houses, Helfant says you should consider asking for an “office caravan” to gain pointers on making your property more saleable. During such an event, many members of the sales force at the listing agent’s office come over to critique the home and offer suggestions for upgrades.

“The more eyes you put on the house, the better,” she says.

-- Use your nervous energy to power a cleaning campaign.

Zimmermann, a veteran in the real estate field, says that in recent years she’s observed a gradual decline in the cleanliness of properties shown for sale. All too often, she says, dual-income couples with busy schedules lack the time to keep a home as clean as their parents’ generation did.

Ironically, contemporary buyers hanker more than ever to own a spotless, well-kept place where they can get a fresh start.

Anxious owners who fear their homes won’t sell would do well to channel some of their nervous energy into an old-fashioned cleaning blitz that covers every inch of their place.

Showing a home in sparkling condition can give you a competitive edge over less tidy people trying to sell in the same neighborhood.

“Anyone who puts an immaculate house on the market should come out ahead,” Zimmermann says.

-- Resist the urge to pressure your listing agent.

Putting a lot of pressure on your listing agent may seem to help, but it can easily backfire if the agent begins to resent your persistent inquiries. Some agents may even drop clients who deal with their frustration by making excessive demands in an overly aggressive way.

“It’s not unusual to hear about agents terminating listing agreements if the homeowners fail to cooperate. You’re entitled to regular updates, but pestering your agent makes no sense,” Zimmermann says.

-- Fear not that your house will languish unsold.

Sellers who become caught in a web of worry only make it tougher to achieve a winning result from their sale.

“For sellers, the overall picture of the market is still an incredibly positive one. Yes, market conditions are changing and mortgage rates are rising -- which reduces buying power. But I still counsel my clients to stay calm and avoid needless fretting so they don’t sabotage their sale or suffer needless angst,” Helfant says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)