According to Andrew Yun, the economic advisor for the National Association of Realtors, there has been a shift in buying patterns in recent years. The largest number of property buyers are Baby Boomers (born 1946-1964). This is not typical. What is more “normal” would be that young adults are the largest group of buyers.

This seems to be reflected in the people who are coming to us for advice about buying, too. The first-time buyers are still mostly young adults. However, those who are moving from one owned property to another are trending older than they were, say, twenty years ago. Two years ago, I had three households approach me for advice at roughly the same time. Two were Baby Boomers and one household (client A) are Gen Xers.

I am sharing these examples today to show future buyers what kinds of questions they can ponder well in advance of going house hunting. Two years later, clients A and B are still in the planning phase. Client see has bought her beachfront condo and has enjoyed two summers there already.

Quick reminder: Selling your primary residence while buying your next property is more complicated than your first-time purchase. Please use the link to review those steps.

Moving from a condo to a single family home

 

Client A: Move before middle school.

She bought a condo when she was single. Since then, she fell in love and they now have a nine year old. The three of them are happy in the condo.

Current situation:

  1. Size: Current condo is (barely) big enough; but it is big enough for the three of them.
  2. Location: The location works for both parents’ work situations.
  3. Lifestyle: Their child’s best friend lives upstairs, making for an almost cousin-like arrangement for the children.

So why move? They want to move before the nine-year-old child enters middle school in this town. The reasons are personal, like many school-related decisions.

  1. Size: Increase the interior space by at least one room. Have a back yard at least as big as their current yard.
  2. Location: Search in towns that border on this one. That keeps the parent’s commute and the child’s relationship stable.
  3. Lifestyle: How do they plan this without disrupting what is good about the close relationships that are being fostered in this condo? When should they move, in regard for the child’s needs and wants?

Plan:

  1. Research prices and examples of properties that meet the size and location requirements. This can be on online at first.
  2. Spend time in the bordering towns, especially in child-related activities.
  3. Make a plan with the parents upstairs. They intend to move, also. Coordinate how and when they tell the children about this upcoming change.

Now, all you’d need to do is to reconfirm that you can qualify to finance your next place. You have the down payment you need for your next place. You’ve figured out what you need in order to move out of your current place and into your new one (without undue stress). 

Converting the “forever” home to two retirement spaces

 

Client B: Move to retirement properties while their children finish launching.

They bought their “forever” home when they had one child. Their third child went to college this September.

Current situation:

Size: Their current house was not big enough during 2020. Two of three children were home at that point. However, their space requirements are likely to go down as their children establish themselves.

Location:

  1. Work: Both parents work tech jobs and were able to telecommute in 2020. Neither parent is retired yet. One will retire within the next five years, the other a few years later. Telecommuting is a dependable option for the parent working longer.
  2. School district cost: Now that the youngest child is out of high school, the expensive house in the expensive tax town is no longer necessary.

Lifestyle: The house is bigger and more expensive than they will need within the next three to five years. They love the location of their current house. It is quiet, yet close to a town center and mass transit options.

Why move? Since the house has a lot of equity, that value can be used to purchase two properties:

  • A small property in a warmer climate
  • A larger property in a less expensive area, as a family home base. This will reduce overhead, since a suburban high-end school district (and the taxes that go with it) are no longer needed.

Plan:

  1. Research prices and examples of properties that meet the size and location requirements. This can be online at first.
  2. Spend vacation time in the future warm-weather locations.
  3. Spend leisure time in the less expensive areas where a house and barn or garage are within budget.
  4. Plan on purchasing the larger property first, because that will make moving and storage easier.

Now, all you’d need to do is to reconfirm that you can qualify to finance your next place. You have the down payment you need for your next place. You’ve figured out what you need in order to move out of your current place and into your new one (without undue stress). 

Buying the bucket-list space

 

Client C: Purchase a beachfront condo.

 

Current situation:

She has been enjoying her time in a beachfront town. She can afford to own in that town while retaining her current property. Since her primary residence is not changing, the only questions are about what properties will serve best for this second home.

Plan:

Size: One bedroom is a must, as a minimum. If it is affordable, consider getting a two bedroom place. The larger property allows for office/hobby space that can also be a guest space.

Location: Since ocean view is the primary goal, don’t look at anything else. Also, consider flood plain issues before purchasing.

Lifestyle: Since this property is an optional purchase, don’t compromise on things that will make your use of the property easy. Many condos have professional management who will be managing snow and trash removal, landscaping, and exterior maintenance. Parking spaces — especially covered parking — make second-home car storage much easier.

What about you?

Every house is different and every family unit is different. 4 Buyers Real Estate wants to help you early in the process, to save you time and stress later on.