I took a group of REALTORS® on a bus tour of senior housing communities this last week. The bus tour is part of a curriculum for these REALTORS® to earn the REALTOR Senior Advisor Designation.
I really enjoy teaching this part of the curriculum because I have an opportunity to see these senior communities through the eyes of the students. Many of them have never stepped foot inside a senior housing community so their impressions are similar to that of the adult child looking for senior housing for parents or grand parents. It's all very new to them and for many, it's the first time they are confronted with issues around senior housing and aging.
I was fascinated by the comments, observations, and the variables by which they chose their "favorite ones". While they were thoughtful in their decision making, these are not the variables I would advocate my clients use to decide.
Here are 5 Mistakes to Avoid When Choosing Senior Housing.
- Do NOT decide on senior housing based on the design of the building, the art and antiques alone. Some of my colleagues commented on the building structure and the beautiful antiques in the building, but did not comment on the smell of one of the hallways were the residents required more care. While aesthetics are important, make sure it's in the correct place on your list of priorities.
- Do NOT decide on the monthly rent or association fees alone. There is simply no standard for pricing in senior communities. For example, independent senior apartments that do not include health care services should be relatively easy to compare with one another. The problem is some include meals, garages, and utilities in the monthly rent, and some do not. Decide on the criteria that are important to you, develop a checklist based on that criteria, and compare the senior communities based on that checklist.
- Do NOT spend more on amenities you won't use. Senior housing is working to appeal to the baby boomer set with increased amenities and cozier lifestyles. The swimming pool, indoor simulated golf center, indoor theater, library, computer room, fitness center, and cooking lessons are fantastic amenities. But, they'll cost you extra and it's a waste of your hard earned money if you won't use it.
- Do NOT get hung up on the legal way you go into title on a senior housing unit. Whether it's a condo, co-housing or cooperative, what's most important here is you like the way the association or governing board handles the rules, there is enough money in the kitty to make improvements (such as a new roof or new windows) without having to impose huge assessments on the residents, and that the apartment, the cost, the amenities, the grounds and the building "feel" right to you.
- Do NOT buy in the first phase of a development. **This is a time sensative comment. Today as I write this I stand by this advice. However in 6 months to a year if there are significant market changes, this comment may not stand** Here is what has happened to a number (too many) clients I have met over the last couple months. They purchased their condominium or townhome in the first phase of a new development. Two or three years later their life circumstances required a move and they wanted to put their home on the market. BUT, the developer was only on the third phase of the development so he was selling NEW units at the SAME price my client purchased the unit for three years ago. Think about this. Everything being equal, if you were a buyer and looked at a three year old unit that was listed at the same price as a new unit, which would you choose? The only way a seller can make this work is to sell LESS than what the unit was purchased for THREE YEARS AGO!
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