Baby Boomers are Selling Their Homes & Starting Fresh...Here's Why

Here's the scenario: Sarah, aged 68, is a widow. She's living in a house that was built for 6, but her children have grown, they now have children of their own and they also live outside of the state of where she lives. The house is 20+ years old and she has no mortgage. Unfortunately, the maintenance and repairs on the home outweigh her income. In addition, due to a washer machine overflowing and having roof repairs done thru her homeowners insurance, the company has now kicked her off... so any issues that arise, she will have to pay out of pocket. Furthermore, the HOA has put a lien on her home because she can't maintain the outside of her property. Her frustration and stress levels are not good for her health. What does she do? What would you do in this scenario? Do you hold on to the property and keep it for your family to maintain once you're gone? Do you procure a loan in order to get the needed repairs done and maybe the kitchen upgraded? What if doors have been closed on you and you can't access the equity in your house? Do you hold onto the American Dream even at the cost of living in stress?

"There comes a time when the cost of ownership outweighs the benefits"

Unfortunately, this scenario is all too familiar to our Baby Boomers. They've worked hard to obtain the American Dream of home ownership. They've lived in their homes for 20, 30, 40+ years, reaping the benefits of home ownership. However, there comes a time when the cost of ownership outweighs the benefits. Maybe a spouse has passed on and didn't make any preparations for their death, leaving their loved ones to keep things going. On the other hand, many just want to live closer to their children and grandchildren. And there are those who are choosing to cash out and just start fresh.

Let's Do the Math - Sarah purchased her home with cash for $160,000. She's lived in her home for 20 years. Although the house is "new" in age standards, unfortunately, she hadn't maintained the home properly and therefore, it needed a significant amount of work done in order for it to be ready to sell. Other homes in the neighborhood were selling, but without repairs being done, she won't be able to ask for the highest amount sold, which was $200,000.

Purchase Price: $160,000

Current Value: $130,000 (after appraisal from Realtor)

Cost of Repairs: $40,000+

Here were her options:

1. Sarah thought about taking out a loan in order to have repairs made, but the time it would take would be about 3 months and she didn't know of any contractors she could trust to complete the job on her schedule.

2. She thought about selling at the current value, using a Realtor, but there were no guarantees that the house would sell quickly or without strangers walking thru her house.

3. She could rent out the house, but still, the repairs to the house were looming over her.

The common denominator? Time and Money. Sarah neither had the time nor the money to complete repairs (nor did she really want the responsibility), to put the home on the market and wait for buyers and Realtors to come to an agreement regarding her life. So what did she do? She found a local Real Estate Investor, who was trusted, could give her a true value and a fair offer for her home, deal with the repairs and close on her house quickly.

How many of our family members and friends sound like Sarah? Waiting for a solution for their home to cross their paths? Whatever the reason, situation or timeline, Cactus Peach Property Solutions may have the solution you need for your Georgia home.