by Barbara G. Hindman
Retirees selling a home have many issues to consider. As a home is a significant component of a retiree’s financial assets, it must be analyzed as part of an overall retirement plan. The first step is to consult a tax accountant or financial planner to investigate the ramifications of the sale including timing, tax consequences and capital gains, and ownership structure. These professionals will also advise the retiree of his options for reinvestment of the proceeds of the sale and future living arrangements (e.g. whether to buy or rent.)
Once the decision has been made to sell the home, the seller must prepare the house to go on the market. Here is where an experienced real estate agent can offer important advice and guidance, working with owners to make the home as attractive and marketable as possible. Many retirees have lived in their homes for decades and accumulated a trove of possessions. It is a challenge to de-clutter and stage a property for optimal showing. Attics, closets, basements and garages must be cleaned out. Options for disposing of unwanted items include tag/estate sales, consignment and internet sales, charitable donations and refuse collectors. Renting space at a storage facility is a good way to relocate personal property while marketing the house.
Another component of preparing a house for sale is investing in minor improvements to show that the house is well-maintained and fresh. While major upgrades may not be warranted, the seller might invest in painting, removing old carpet and refinishing floors, and making sure all mechanicals function properly. I have connected many clients with a stager/decorator for advice on creating an impression that will show a house at its best; these services are a good investment for a retiree who has not recently redecorated. It is particularly advisable in the current market where internet photos and virtual tours are the screening device for purchasers.
Consulting a real estate lawyer before listing the house will also make you ready to move quickly when a buyer emerges. Your attorney can identify any open permits, missing certificates of occupancy from previous renovations or any existing liens on the property. It is very important to resolve these issues in advance of listing the property. The attorney will also search the title and discover any easements on the property that are material facts to the sale. He or she will also discuss closing costs and the components of the sales contract.
Retirees who have owned their homes for years should consider having a home inspection performed prior to listing the house for sale. This will reveal defects that can be rectified before marketing the home. An inspector may point out areas that are not up to present code or basic repairs that need to be addressed. If there is an underground oil tank, he will probably recommend removing it. Most purchasers demand that the seller do this before closing. Having this pre-inspection prevents surprises that may delay the signing of a contract or break a deal.
Your Greenwich realtor can also help you find your next home to buy or rent, whether local or by referring you to an affiliated and vetted agent in another town, state or country.
Barbara Hindman has been a Greenwich realtor since 1995. She holds a Connecticut broker’s license and the GRI designation. She has extensive knowledge of the Town of Greenwich and has experience in investment and development of properties as well as end-user sales. She looks forward to serving your real estate needs. She can be reached at 203-964-7670, barbara.hindman@sothebyshomes.com.
