July 5, 2010

They came in carrying a clipboard. I knew they were serious.

danBy Dan Dolan
Dan Dolan Homes

The elderly couple pulled up to my open house in a brand new red Toyota Prius. They came in carrying a clipboard. I knew they were serious.

The woman greeted me first and indicated they wanted to cut their living costs and downsize their living space. She indicated the Prius was one step in that direction. The husband chimed in and described how their gasoline and related travel costs would now be reduced dramatically. They now wanted to find their “lowest possible housing costs” he told me, while preserving their quality of life. “What can you suggest,”he asked.

I had some ideas.

The couple indicated they were planning on selling their current two-story home in Bettendorf worth about $160,000 and finding a new home that “had everything on one floor.” I asked him if he had been reading my advertising. He had. And he had some questions. They were both age 76, he added.

First I showed them the home at 5419 Northwest Circle in Davenport. 2 bedrooms, 2 baths, 2 car garage, full basement screened-in porch
overlooking the great open space of the nearby school. Main floor laundry, walk-in shower, no-step entry, high efficiency cooling and heating and the exclusive Dan Dolan insulated concrete “silent wall” between units. Over 1400 sq.ft. of finished living space plus the unfinished basement. $215,900. What did they think, I asked. They thought about it and concluded the home met their needs well, especially since it was convenient to medical, banking and shopping. “We’ll save even more on transportation,” he added.

As one possibility, given their respective ages I indicated that with a reverse mortgage for purchase they could move into this brand new home for a one-time payment of about $85,000 with no further payments ever. Given their estimated proceeds from the sale of their existing home they could make the one-time payment and have some $75,000 left over for investment, savings or for gifting to the family. They liked that idea.

The pleasant surprise: The Davenport Now Tax Incentive Program would further rebate them around $6,000 up front  to help make a few payments on the Prius if they chose and maybe pay for the next vacation cruise.

I reiterated the fact that now is the best time to make their buying decision. For instance, my building materials supplier recently told me prices are NOT dropping any further, and there’s evidence of increases in the offing. My suppliers of electrical, concrete, heating and related services have indicated they are at rock-bottom pricing now but not for long.

And when last I looked, land prices are not declining. On the contrary the prices of quality, buildable lots in desirable and convenient locations are stable at best with hints of rising.

Mortgage rates? They are still at very low levels and the signs are for steady increases for as long as the eye can see. Even for seniors not
planning to finance their own homes, buyers of their current home may be looking to finance their purchase and the lower the mortgage rates the more potential buyers can qualify to buy their home.

The senior couple said they had considered one of the attractive new independent living facilities in the area but the monthly costs of around $3,000 and the fact that those costs never stop, they could easily see how they would run out of money in just a few years.  More traditional housing geared to senior needs seemed to be the preferred solution they thought.  

The decision to move from a home of some 20 years or more to a new home is not to be taken lightly. But at Dan Dolan Homes we have worked with dozens of seniors who have made that transition and now remain more convinced than ever that it was the right thing to do. Our Realtor staff is available weekends at all Dan Dolan Homes sites in the area to answer your questions and show you how a Dan Dolan Home represents a sound decision. For hours at the various locations or to make arrangements for a private showing, call me at 570-1460 or call Don Gibeault at 650-8007. In Davenport, our homes are open Saturday and Sunday from 1 to 4 PM.

Filed Under: Finance

Tags: , , , , , , , , , , , , , , , , , , ,

Trackback URL: https://www.50pluslife.com/2010/07/05/they-came-in-carrying-a-clipboard-i-knew-they-were-serious/trackback/