All too often I hear the phrase, “I live in my home for free so why would I want to move to a senior community or apartment!”

This statement could not be farther from the truth! We all dream about the day we make our last payment on our mortgage and then we truly own our home and owe the bank nothing. When that day comes we are ready to fully enjoy our retirement and coast to our last days. However, as the home ages, cost to live in our homes accelerates. There are other costs we must pay to live securely in our homes.

Based on a 200,000 home, here are typical costs which vary by location:

                                                   Per Month

Maintenance: (Most economists use a factor of 3%)  $500
Homeowner’s Insurance                              $50
Property Taxes (vary by community)                 $400
Utilities (gas, electric, telephone)               $150
Water/Sewer (vary by community)                    $75
Sanitation (garbage pickup)                        $10
Loss of Investment (3.25% per year)                $541
If $200,000 were invested today                    ------
Total Monthly Expense Each Month                   $1,726

If you think you live in your home for free, click here to see the true cost of living in your home

There are also other considerations as to the true cost to live in your home. If prices fall due to the aging of your home or the economy, your home asset is actually shrinking.

Of course, there are the reasons moving may enhance one’s quality of life by living in a safe and secure environment which matches current physical and psychological needs.

So, be realistic about the costs of living in your home. You do not live in your home for free, and a move to safety and security may cost less than you think!

Please call if you need a market update as to the current value of your property. Knowing the current value of your home in today’s market is critical to understanding the true value of living in your home. You can call anytime to schedule an appointment at 262-242-6177.

All the best,

Bruce Nemovitz  CRS, CSA, ABR, SRES

We all are anxious about our present as well as our future. Wouldn’t it be nice to have that crystal ball that would give us some clues as to what our economy will look like next year and beyond! Since no reliable indicator exists, we can only depend on the so called “pundits” who profess to know more than most, but their results are mixed. I am going to take a stab at my own predictions of next year’s real estate market with the risk of missing the mark a bit and having you, the reader, remind me of my well intended attempt! My picture of next year’s market is based on many conversations with banks, appraisers, home owners, buyers and sellers. I have 32 years as a full-time Realtor providing a good base for my insights into 2010’s housing environment. So here goes:

I believe that our economy is not out of the woods, but it is gaining some footing. Americans are feeling that (more…)

We love our homes! Just think back to when you purchased your very first house. Feel the emotions of excitement and the thrill of leaving an apartment for the independence of home ownership. For many, that journey may have begun 30-60 years ago. Those memories are an important component of our life histories. The houses worked for us as long as you kept up with the maintenance both inside and out. But what has changed are the owners of the home!

Over the years our surroundings become a part of us. We sometimes feel that our home and neighborhood are synonymous with who we are and how we view our place in the world. We know the neighbors, the stores, the restaurants and our places of worship, which in most cases are within a short distance of our homes. Thinking of venturing out from our homes to a new environment is daunting. The number one fear holding most of us back from a move to a new apartment or community is the (more…)

One of my favorite clients named Shirley, had a choice to make. Following the death of her husband, she realized the house with all its memories and history could no longer be part of her future. The straw that broke the camel’s back, however, was the $400 she paid someone to rake and remove the leaves. She was vulnerable at the time and is still troubled by the transaction.

Shirley was faced with a dilemma that so many of my senior clients have to deal with. A sudden change in the form of health problems, loss of spouse, financial issues are just some of the complicating factors that enter our lives. Immediate action is required, but so many procrastinate and wait too long, until the problem dictates the coarse of action, many time with the children making critical life decisions.

Shirley made the decision to downsize and move. She currently lives in a 970 sq. ft. senior apartment close to her church, where she attends services, and close to her doctor and dentist. It has two bedrooms, two baths, living and dining rooms, kitchen, convenient laundry equipment and space for the mini van. The facility offers reasonably priced meals if desired, shopping trips, tours and many planned activities. She’s made friends and has become a helpful shopping companion to several women who are unable to get out without assistance.

Deciding to move was a piece of cake for Shirley and she obligingly offers suggestions to others considering relocation. First she says, take an inventory of each room’s contents. Next, invite the family members to take whatever they desire. Then hold a rummage sale and donate to charity anything in good condition but not sold. Contact a consignment center to sell any equipment of value and dump everything else. Finally, don’t look back, just move! You’ll never miss the stuff you didn’t take with you.

It worked for her but she does confess she’s not quite settled yet. Shirley is still deciding what to do with her bell collection and her husband’s camera, coin and stamp collections.

‘I’m in no hurry,’ she chuckles. ‘It’s a work in progress.’

Shirley took charge of her life, and made the decision to get the most out of the life she has been blessed with. You too should assess your situation, and know that there are excellent alternatives that can lead to an improved lifestyle with less worry about maintenance, security, and health related issues.

I received a frantic call yesterday from a lovely 85 year young lady who was in desperate need of advice. She had been living in her home for that last 40 years. When she had moved in, her knees were working well and her eye sight was 20/20. She drove at night and had the home in tip-top shape. As the years went on her husband passed away and she was the captain in charge of the ship. She took over duties such as paying the bills and making sure the maintenance of the home was up to the moment, as they had always took pride in the condition both structurally and mechanically.

Over the last 10 years her body started to experience difficulties in her ability to navigate the stairs as her knees began to show signs of arthritis. She became less confident when driving at night. She became more anxious about security, as many of her trusted neighbors had moved on. What hurt the most is that many of her friends had (more…)