18 Decisions Factors

Condensed and adapted from Our Old House– Our New Home

Over thousands of interviews and hundreds of home sales, I have identified 18 key purchase factors that are major determinates in the decision of buying an active adult home.

1. Can we stay where we are?
(Often heard) — “It would be so much easier not to go through all of this research and uncomfortable car travel. If only we could stay in our old house.” You have your special reasons for wanting to stay. One of the reasons most often thought about but not discussed are the “memories” in the old house developed over the years. Your children being born; the birthdays and weddings; decades of great days and nights with family and friends.
Fortunately, memories are IN YOUR HEART and IN YOUR HEAD — they are
PORTABLE. They are not attached to the bricks and sheathing of your house.
That’s the beauty of memories — you CAN take them with you.

2. What TYPE of community?
Since most of you are very interested in the active adult community segment, let me generally outline the “profile” of a successful candidate for this type of living. Hopefully, it will apply to you and you can focus your attention on this category. A typical buyer in the newer active adult communities will generally fit the
following description:
• Age 48 to 71
• One or both are in good health
• Is above average in financial strength
• One wants to do volunteer work
• Has been moderately social in their lives
• Loves their kids but has decided that their happiness in retirement is important too
• Makes “a few”good friends relatively easily
• Is ready to spend the next thirty years rediscovering the youthful lifestyle the enjoyed when they were just starting out

3. The children and those grandkids...
Whether or not children are a help or a hindrance to the purchasing process for your next home,they are certainly a major consideration. You have spent your entire adult life taking care of them and making sure that their decisions were guided by your experienced hand.Why shouldn’t they have input into this next move of yours? As for me,I’ve got three grown sons and have just been blessed with my first grandchild. And, while I am looking forward to all of the grandfather things that will undoubtedly happen over the next twenty-five years, I have already decided that I am not going to revolve my retirement around them.They will have to revolve their timetables and vacations around me and my wife. For when we decide to retire, it will be OUR TIME to enjoy the next “window
of living” that we are blessed with.

4. The doctor, the butcher, and the baker
You’re quite set in your ways where you are.You have great doctors who know
everything about your health and your peculiarities. The man next door knows where to get the best tomatoes in Pennsylvania and he goes there every other weekend and bring you back a bag full. Notwithstanding the comfort those things bring, you will survive the search for new services, stores, and places to go to dinner and to have fun. It’s all part of the process. You will find these
places with your spouse or with new friends and will enjoy the renewed “spirit” of pioneerism
that made this country great.

5. Community location
You are going to decide upon a community location with many considerations, including.
• Population and “feel” of the town
• Tax rate and degree of planned stability
• Proximity to shopping malls, hospitals and doctors, major interstate roadways, etc.
• Travel time to children
• Traffic patterns
• Access to “walking and biking” trails Whatever your particular needs relative to community location, don’t let another 30 minute drive stop you from buying somewhere you really like. You are WORTH another 30 minutes for the kids to drive. Please know that (and get a little more selfish).

6. The size of the community
Since many of the active adult shoppers like yourselves are in the 48 to 65 age category, we find that you are giving more serious consideration to the SIZE of the community that you choose than would say a 70 to 80 year-old buyer. This is predominately due to the fact that the older you get, the more time of your day is spent IN the home rather than out of it.
For active adults seeking their perfect retirement home or community, size certainly plays a large role. Its importance to you can only be decided after seeing the degree of ingenuity, design, and good taste created at the community by the builder that is trying to make you a buyer.

7. Clubhouses, Recreation and Amenities
All new active adult communities will have a clubhouse of some sort. It seems with every new community comes a new innovation to the clubhouse design or contents. Some have even abandoned the term clubhouse and called the new edifices of twenty thousand or more square feet “Spas,” Fitness Centers or Lifestyle Resorts. The more elaborate the clubhouse design, the higher the cost of the home. The more intense the package of amenities that are offered within, the higher the monthly maintenance fees. What follows are a few questions that, once answered, can help you decide which amenities are most important to you.
• What sports or activities do I and my spouse enjoy NOW?
• Do I need a large clubhouse with 24/7 activities in order to “socialize” or can I meet people on my own?
• Would I definitely join a golf or swim club nearby to enjoy recreational facilities if the
were not available at my community?
• Will I be bringing a lot of guests here?

8. Homeowner’s Associations
Prospective buyers should know that a community with an HOA has some important
differences from a regular home purchase where there is NO association to deal with and should fully understand these differences.
Following are some facts about HOA’s that are
important for you to know:
(a) There are always Rules and Regulations
associated with communities with common
elements.
(b) The management of the HOA is made up
of elected homeowner trustees. The number
of trustees increases as the number of homes
occupied rises.
(c) Fees of HOA’s may rise to meet the actual
expenses of the community at the discretion of the HOA management and voting homeowners.
(d) HOA’s rely on volunteerism from the
residents if the budget is to be maximized.
(e) HOA’s are meant to be a tool for the
residents to BETTER enjoy their community
and are not meant to be a political machine or
a police mechanism to restrict people’s rights.
I suggest that you become familiar with the
rules and regulations BEFORE you buy.
Remember, the HOA is made up of
RESIDENTS just like yourself. They are trying to keep the community
consistent in appearance
and smooth running. Don’t
be afraid of the HOA —
rather embrace it as an ally
helping your home and
community to be more
attractive.

9. Security considerations
Aside from the extra monthly costs, some of the security questions you need to ask
are:

• Must I have a staffed guardhouse up front?
• Will an alarm system on my home be
sufficient to make me feel confident in
my safety?
• What is the crime rate in THIS town?
• Where is the police station?
• Will we be home most of the time or do
we take frequent one and two day trips?
• Is there a 24 hour patrolled service on site?
• Are there “panic button” services available?
• What has been the history in the
community so far?
The need for safety and security in a new home
is very personal. Think about what you and
your spouse really NEED. Do what feels
comfortable without being embarrassed or too
proud to admit your fears.

10. The Home Quality, Design, Price – AND ALL THOSE OPTIONS
This is by far the biggest and most important factor for you to consider in making your decision to purchase. You must research.You can’t possibly learn too much about the builder.
––––––– Quality –––––––
An analysis of quality MUST start with an analysis of the builder. Consider conducting the following activities:
• Find out about other communities he has
built and visit them. Talk to residents there if
possible.
• Get accurate details about how many
homes the builder has delivered over the
past five years.
• Make sure the 10 or 15 year warranties
are with reputable companies.
• Have the closing dates been met on the
homes already occupied at the community?
• Are there other communities being built
in other locations at this time?
• Ask residents at the community for their
opinion on the quality and reputation of the
builder. Don’t forget to ask them if they are
happy there, too. Once you have a good
feeling about the quality of the builder, you can get into house quality by visiting the
models.
––––––– Design –––––––
The architects and designers of today are
endeavoring to come up with the home styles and designs that will suit the broad range of active adults over 55 years of age. The difficulty is that the profiles of these buyers are so varied that coming up with a
“perfect model” has been impossible to date.
If there are only five or six models to look at, that usually can be dealt with easily. But, I
have seen model centers with up to fifteen designs and after a while, they all
seem to look alike.
When you’re trying to decide on a design that suits your way of living, keep in mind the
following:
• You won’t be needing all the clothes
and furnishings from your old house —
so SCALE DOWN.
• This house has to please YOU.
Don’t buy square footage if you don’t need it.
• Don’t plan for enough space for ALL of
the kids to stay overnight. They will probably
NEVER be there all at the same time.
• Bring the kids. They can add real insight
and confidence to your choice of homes.
• Make sure it is REALLY maintenance-free
• Make sure you know what structural options
are in the home and what the BASE house
looks like. Don’t be misled by beautiful
entertainment centers or fireplaces that
don’t come with the home.
In summary, I’m of the opinion that simpler is
better this time around. But,you can make this
home any way you want it. After all, you have
plenty of time to plan it out.
–– Price Including Options––
How much is this place going to cost me?
In order to determine the final price that your home will cost, you must segregate out the items that contribute to the total. Then you must evaluate them as they relate to your
own particular needs. The following list includes most of the cost (price) factors
that you will be concerned with in your new home purchase: (Don’t forget to deduct builder
incentives.)
• The base price of the model you choose
• The extra charge for modified elevations
• Structural options you may add such as –
sunrooms, screened porches, patios
• Lot premiums
• Option packages
• Addition of basements
• Interior design options
Other than actual house construction costs,
you will also want to know how much you will
be spending on:
• Legal closing costs
• Mortgage charges
• Cost of moving from your old house
• Cost of interim housing
• Cost of getting your old home ready for sale

11. Job Market –
Will I be working?
Your decision to work part-time or full-time after you retire will hopefully be more out of desire than from need. But either reason must be considered before you buy this next
home. If you decide you want to work twenty hours a week in a major shopping center store, you have to make sure that they will be hiring when you move into the area. Go check it out.Ask them if they hire retired part-time help. Very often, they will appreciate the opportunity to get a seasoned salesperson who actually knows FROM EXPERIENCE how the products are to be used. Volunteering is a good way to work and make some extra income after
your move. Check into the area hospitals an nursing homes. They are always looking for
experienced caregivers and aides.

12. Resale Market Forecast
At the time of printing of this guide, the market is again very good for sellers. Most agree it’s the best it has been in some twelve years. If you are close to retirement, the real estate resale market conditions MUST play a role in moving you to action. You must at a minimum seek counsel from someone who knows the realty market well. Talk to realtors and your accountant. Analyze your finances to determine how much you must make on the sale of your home.If it turns out that you can get to the new home by accepting an offer that is four or five thousand dollars off of your “ideal” selling price, it may be worth the loss in
revenue to get on with your move.

13. Health Considerations
We need only to remind you that this assessment is the most critical factor
whether you decide to move or stay in your
present house. Take care of yourselves.

14. Should I buy a resale home?
New or resale is always a question for today’s senior buyer. And, like most decisions, there is no one right answer for every buyer.
Advantages of a Resale home already built – no waiting for construction; all the “kinks” are out of the house; options will cost less than if bought new; painted and wallpapered already; lawn and landscaping in place; usually lower price than new home; taxes are absolutely known.
Disadvantages of a Resale home –
Can’t have house “exactly” as you want it; appliance warranties are probably expired; no guarantees on major house elements;
usually less “bright” and less storage; no bug infestation warranties; no builder or 10 year homeowner warranty; a lot of cleaning and
freshening up expense; minor repairs and alterations needed; no “new” home or
community excitement.

15. Estate Planning Implications
What on earth does my estate planning have to do with the purchase of a new home in an adult community? This factor must be evaluated by the “triumvirate” of YOU, your ACCOUNTANT, and your estate planning ATTORNEY.
Two potential strategies are:
• Placing the residence in a real estate trust
for the benefit of the children or grandchildren.
• Purchasing the home in the name of the
grandchild who would become the landlord to whom you would pay rent. He would be taxed very little on the rental income because of his age and lack of other income. You would be able to pass the home down to your children and then to the grandchild for his use.

16. Mortgages
A mortgage is a way to relieve the tight monthly
pressure on your fixed income and get those other few options that will REALLY make you happy in this new home – the screened porch,
or the whirlpool tub you always wanted. Many seniors worry about qualifying for a mortgage at “their ages.”Please be assured that there are numerous types of mortgages that you WILL be able to qualify for. Any mortgage broker or bank will be happy to give you a selection of mortgage options to choose from.Also, you have the option to initiate a term life policy in place to pay off the mortgage should something
unforeseen happen to you.

17. Real Estate Taxes
What you get for your tax dollar will vary from town to town. So, to pay for elementary schools seems a hardship since you have no school-age children. But, younger residents pay for paramedic services, and senior centers, and busing services, and these, I guess, could be looked upon in the same way if they chose to.
No matter how much you discuss it, the bottom line is “death and taxes.” It’s not going to change. When you are doing your preliminary financial analysis, you must address the tax
question RIGHT up front.

18. Am I too old to do this?
There will be times when you and your spouse will say things like “Are we too old to do this? ”Or,“What did we get into this for?” It’s only natural to stay with what’s familiar and to question why you would put yourself through inconvenience, stress and pain at the later
stages of your lives.
Some never move forward.
Some stay in the towns they were born in —
even in the same house. It’s what’s important
to YOU. That’s the difference. Americans are blessed. And we are brave.And we are full of the most vigor and enthusiasm of any people in the world.We can do almost anything that we set our minds to at any age providing our bodies do not get in the way. Age has nothing to do with living. Realize it, and get on with the good part of your life — I call it the “next
window of living.”
 

by Jared March

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