Homeownership is a journey for many people. In a lot of cases, someone will begin with a small ‘starter-home’ or condo before upsizing into their ‘forever home.’ However, there may come a time when your forever home is no longer serving your changing needs and you may consider selling it in favour of a smaller property or even moving to a retirement community. 

Selling your home as a senior may seem like a daunting task. You have likely been out of the real estate market for many years, and the landscape of the market has changed. Or perhaps you have paid your mortgage off in full, and the idea of selling your home and potentially taking on a new mortgage seems like a scary prospect. Or maybe, you have lived in your current home for several decades and you worry that there are too many updates needed in order to prepare the home for sale. 

No matter what your situation is, selling your home as a senior or a retiree looks a lot different than buying your first or even second home. 

In this post, we’re going to take a look at some of the logistical items you need to know as a senior selling your home. 

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Has the Real Estate Market Changed? 

You are likely seeing many news stories about property values in the Ottawa area settling down due to increasing interest rates. Before planning to sell your Ottawa home, you should learn as much about the market as possible.

If you purchased your home in the 1980s or early 1990s, you were absolutely buying a different climate compared to today. 

As of the writing of this blog, Ottawa is currently in a balanced market and leaning towards a buyer’s market in some neighbourhoods. However, things can quickly change. So what do you need to know about a buyer’s vs. seller’s market? Let’s take a look:

Buyer’s Market – There are more homes available in the market than there are potential buyers. In this type of market, we see homes staying on the market for longer periods, with lower listing prices. Homes may even sell below the listing price since the buyers have more negotiating power. 

Seller’s Market – There are more buyers in the market than there are available homes. This market sees homes sit on the market for less time, with many properties selling above the listing price, and in some cases, with multiple offers. 

Balanced Market – There is enough demand from buyers to equal the supply of homes from sellers. In this market, housing prices remain stable with close-to-list-price offers and homes typically stay on the market for an average length of time.

Are you thinking about downsizing soon? Here is how to tell when the time is right. Read our blog here.

How to Prepare Your Home For Sale 

If you have lived in your home for many years, you may need to consider some strategic updates to the home to prepare it to be listed in a modern market. It’s important to consider the unique audience your home will appeal to and to think of the specific features that this audience will appreciate. 

It could be as simple as putting a fresh coat of paint on the walls. However, depending on the unique condition of your home, repairs, and updates might be more extensive. 

The key here is to do the right amount of work, and only focus on aspects of the home that will add value to the property. For example, new roof shingles might be an expensive repair, but it will likely add great value to the home. On the other hand, a minor kitchen renovation could be something relatively easy, but it could also be something that your buyer might want to do themselves to their own taste. 

It’s also critical to see your home as an investment now, your emotions and biases should not be a factor. For example, perhaps you are sick and tired of your home’s original hardwood flooring, but a prospective buyer might see high-quality, original flooring as a major selling feature in a home. 

The best way to approach preparing your home for sale is to work with an experienced Ottawa real estate team. They can look at your home objectively and provide you with a to-do list of things that will have a positive impact on the sale of your home while minimizing the work you need to do to get it there.  

Are you helping your parents downsize soon? Read our guide about how to talk to your parents about downsizing here.

Getting a Mortgage For Seniors

Once your home is ready to sell and you are thinking about buying your next home, you might run into your next concern–getting a mortgage. Lenders typically look at things like debt-to-income ratio and your current salary when determining your eligibility for a mortgage. For a senior who is likely retired from their career, this could present a problem, since you don’t have a traditional income.

You should always speak with a mortgage professional before making any decisions pertaining to your finances, however, we can cover a few of the basic mortgage products that are often a good option for retirees looking to buy a new home. 

Home Equity Line of Credit – You may have heard some news stories surrounding the Home Equity Line of Credit (HELOC) but for some, this is the right options. This is a line of credit that allows you to borrow up to 65% of the value in your home. HELOC qualification is based on income and credit score, like a traditional mortgage, so this option might not be right for everyone, but it may help some homeowners free up some credit while only required to make interest payments. 

Reverse Mortgage – Reserved for homeowners over the age of 55, a reverse mortgage is ideal for retirees and seniors living on a fixed income. These mortgages allow homeowners to qualify for up to 55% of their home value depending on their age. Homeowners are not required to make principal payments on the loan until they decide to move or sell. However, you can make advanced interest payments.  These are also sometimes referred to as “lifetime mortgages” since they are used predominantly by people who are not planning to sell their homes in the future. 

Other Options – Private mortgages are also an option for some homeowners is a private mortgage, which is often based on the equity in your current home. 

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Planning a move soon? You likely have some questions. Here are some resources to help get you started:

• Condominium Vs. Freehold
• Should You Move or Renovate Your Ottawa Home?
• 9 Benefits of Selling Your Home with an Ottawa Real Estate Agent
• 6 Advantages of Buying a Home with an Experienced Ottawa Real Estate Agent

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Selling Your Home as a Senior Doesn’t Need to Be Stressful 

As a retiree or a senior, we understand the emotion and stress that comes with selling your home–especially if you have lived there for many years. For many, your home is centrepiece of your daily routine, it’s the breakfast nook where you have your morning coffee, it’s the living room sofa where you gather for movie night. Your home is also filled to the brim with memories. From family dinners in the dining room to teaching your kids to ride a bike in the driveway. 

We completely understand that leaving this behind can be hard. But sometimes, it’s the best choice. The key is to work with an experienced and empathetic Ottawa real estate team who can understand your concerns, answer your questions, and give you a completely stress-free experience while helping you maximize the sale of your home for the best future for you and your family. 

If you’re thinking about downsizing soon and want to start the process of selling your family home, reach out to Chell Team right here for a free home evaluation. We’re passionate and experienced locals ready to help you find your way!