Sedgebrook	UPDATED: Tuesday, July 24, 2007
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Real estate report

Posted on Tuesday, July 24, 2007

Part one: Understand today’s market to make strong, informed decisions

By Meghan Streit
THE ERICKSON TRIBUNE

We’ve all heard the recent refrain when it comes to residential real estate: it’s a buyer’s market. To be sure, there are a high number of houses for sale, and some deals to be had for buyers.

But that doesn’t mean you have to hang on to your house until market conditions change. Depending on your individual circumstances, real estate and financial experts say there are still plenty of good reasons to go ahead and put your house on the market.

A normalized market
First of all, contrary to the hype, the market isn’t actually that bad. Residential real estate is experiencing a cyclical downturn, following a boom that distorted sellers’ expectations.

“We’re returning to a more 1990s-style market,” says Pat Callan, treasurer of the Illinois Association of Realtors. “Instead of having 30-day listing periods, you’re going to have three- to fourmonth listing periods.”

For older adults who may have owned their houses for several decades, those properties have already experienced a significant amount of appreciation. So, considering the larger picture, minor fluctuations in pricing do not have a material financial impact.

“As it relates to the senior who wants to downsize, no matter what the price is today, they’ve seen a great deal of appreciation on that asset,” Callan says.

That means if you have to lower your price by a few thousand dollars in order to attract a buyer, you still stand to make a sizable profit.

Put your money to work for you
Secondly, because real estate appreciation is currently slowing, you could actually be losing money by keeping it all tied up in your house.

“You should size your house to what your needs are, and take any additional capital and put it into an incomeproducing asset,” Callan says.

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If you invest your money in stocks or other financial instruments, you can actually increase your net worth more than if you just let your wealth linger in real estate. Well-placed investments can also be the ideal way to generate extra monthly income during retirement.

“One thing that I’m noticing is that a lot of older people have money, but it’s really spread out,” says Evanston-based financial advisor Lisa Ditkowsky of Pllush Capital Management. “They could use that money to spend on their grandkids, or to go on vacations.”

The maintenance can cost you
Ditkowsky also points out that gains on the sale of a house are tax-advantaged. Individuals get a $250,000 exemption, and married couples receive a $500,000 exemption.

Another reason many older adults sell their houses is the upkeep on a large property can be too costly and timeconsuming. There are lawns to be tended to, outdated infrastructure to be replaced, and household chores to keep up with every week.

Michelle Hilger is the move-in coordinator at Monarch Landing. She helps new residents with the logistics of relocation. At Monarch Landing and Sedgebrook, community members enjoy the privacy of their own apartment homes, without the stress and expense of upkeep.

At all Erickson communities, if something in an apartment home needs to be repaired, on-site maintenance teams are available to take care of it at no additional charge.

“I have interviewed many residents who have said they wouldn’t go back to their houses for anything,” Hilger says. “They obviously don’t have to worry about the responsibilities of owning a home, so they could actually be saving money because they don’t have to make repairs and do maintenance.”

Perhaps one of the most compelling reasons to sell your house is one that carries no price tag—the desire to live among friends in a supportive community.

If you’re living alone in your house, getting out to see friends and enjoying social activities can be a hassle. But at Monarch Landing and Sedgebrook, you live among your peers, and regularly scheduled events activities are just a short indoor walk from your own front door.

Living among friends is priceless
Phyllis Schroeter recently sold her Crest Creek house to move to Monarch Landing.

“I had a four bedroom, two-story house, and I was living there by myself,” Schroeter says. It was fine during the day because I was busy and had loads of friends, but come 5 o’clock, I was there alone.”

Now that she’s living at Monarch Landing, Schroeter can enjoy dinner with friends each night, and getting together with people during the day is easy.

Know your customer
This is part one of a two-part report on the Chicago area residential real estate market. Check the next issue for “Know your customer,” an informative update on understanding buyers’ mentality to successfully sell your house in the current market.