Retirees and seniors are active in the U.S. real estate market — and everything else! Turning 65 once meant retiring on a pension. Today, for many, it means financial independence, self-actualization, and enjoying life for a few more decades.

How does this impact an older adult’s real estate plans? Is it better to rent or buy? And if buying is better, what type of home makes sense?

Renting: It’s a Good Choice for Some, But It’s Not Everyone’s Cup of Tea.

Some seniors sell their houses and move into rental properties, and have excellent reasons for doing so. Yet many others buy. Renting isn’t as cheap as it used to be. Buying a house can be cheaper than renting.

Older adults can qualify for mortgages based on retirement income. A fixed-rate mortgage is a substantial benefit when inflation is rising. Planning to buy and hold five to seven years or more? If so, buying a home can pay off in equity, as a house becomes an asset — maybe even collateral for a new loan.

Renting leaves future questions open. After all, a renter’s right to live in a place is limited by the rental agreement. And renters who’d like to age in place might not be able to install age-friendly home features.

Whether you decide to rent or buy, it’s good to think ahead. Ground-floor living could make sense. Nearby public transportation could come in handy. Arts and education, and natural spaces for walks, are all good to have.  

Selling Your Current Home? Help Is Available.

Professional support with painting, renovations, and staging can make all the difference in the price you fetch for your current home. Plus, it can avert the pain of marketing a home that’s not looking its best. As in: OMG! Everyone can see my home on the internet!

Consider hiring a concierge service. With this service, an agent will tour your house and quickly spot the upgrades most likely to pay off in your home’s final sale price. The broker will advance the funding for interior cleaning, aesthetic touches, repairs, new appliances, and other high-impact upgrades. Then the work will be done. When the home is sold, the brokerage gets reimbursed by the seller.

Compass is an example of a brokerage with a concierge service for house and condo sellers. It also has bridge loans to help a seller leverage home equity and handle the financial feat of buying one home while marketing another.

No matter what broker you choose, it’s a good idea to get someone who comes with trusted recommendations.

Do an online search for “senior moving services” near you, and “senior discounts” with “moving companies” and you’ll learn more about how to relocate your furniture and personal belongings.

☛ Selling and buying at the same time? Read these tips on How to Sell Your Current Home While Buying the Next One.

Downsizing From a House to a Condo? The Senior Co-Op Is Also an Option

You might want a smaller house. You might want a condo. But there’s more to consider. Such as co-ops. They’ve long been a standard in New York City. Now, they’re on the rise in cities throughout the country. If you like the idea of living in a self-directed community, co-op living could suit your style.

Senior co-ops strive to empower their residents and preserve seniors’ money. The residents hold the shares, so they create the rules and policies.

☛ If you buy into a co-op, will you hold a deed? Here’s how buying a co-op property works.

But are co-op units harder to sell? Residents may — subject to the board’s go-ahead — transfer their shares in the co-op to others. If you’re buying into the co-op model, find out whether you can bequeath your shares through your will.

Homes in a 55+ Community: A Good Option?

Homes in 55+ developments are designed for seniors. Prices and association fees can be similar to that of ordinary condo units.

While an over-55 community is much like a condo property, there are the age rules. Curious about how these age rules actually work? In general:

• Under federal law, 55+ communities consist of at least 80% of people aged 55+. Properties can decide to make that figure higher.

• While kids can visit, most 55+ communities don’t let them live there permanently.

• Anyone under 55 who lives on the premises would have to live in a unit with a person who’s 55+.  

The basic guidance for 55+ communities comes from the Housing for Older Persons Act (HOPA). The rules on title transfers and inheriting these properties vary. Potential buyers need to know what the property’s rules say before deciding to buy.  

Don’t Rule Out Retirement Properties: Many Offer Attractive Amenities Along With Peace of Mind  

You might be familiar with active-adult communities. These can be houses or condos, or rental apartments. Some offer resort-style features.

When seniors choose active-adult or any other type of retirement living (in contrast to buying into 55+ properties), they come up with a buy-in fee at the start that covers lifetime rights to housing. In addition, there are monthly maintenance fees.

For seniors who need extra support, the terms independent living and life plan come up. How do they differ?

• Independent living communities provide all meals for their residents, together with housing, utilities and maintenance. Many offer daily schedules filled with shopping trips, city tours, movies and social activities.

• Life plan communities let people buy in as active adults, living the same way they did before they moved in. Later in life, they have access to healthcare when they need it on the premises.

Get familiar with your state laws before deciding whether and where to buy into a retirement property. Some states require elders to exhaust their own resources before they tap into Medicaid. To protect your assets, meet with an attorney who works with retirement planning and government benefits.

☛ Are you a federal employee? Find out if you’re eligible for assistance with long-term care insurance.

Hold Onto Your Title: Awareness Matters  

Whatever kind of home you own or buy, awareness matters. As homeowners get older, they need to be cautious about pressures from other people — relatives, hired helpers, financial advisers, or strangers. They need to protect the titles to their real estate.

☛ Caution! Once a homeowner signs a quitclaim deed to someone else, that other person instantly owns the home.

Before buying your next home, speak with a title insurance company about what protections their extended policies offer. An extended title policy covers scams like identity theft and post-policy forgery. Whenever you’re ready to buy your new home or condo, getting an extended homeowner’s title policy is a good idea.

Note to readers: Deeds.com doesn’t benefit from mentioning specific companies. Nor does Deeds.com endorse them. Articles on this website are for readers’ general information, and are not recommendations or advice.

Supporting References

Patricia Mertz Esswein for Kiplinger.com: Should You Rent or Buy Your Next Home in Retirement? (May 27, 2021).

Deeds.com: Buying Versus Renting for Active Adults (Nov. 3, 2021).

Deeds.com: Elders and Real Estate Fraud: A Burgeoning Problem (Oct. 1, 2020).

Deeds.com: Age-Restricted Communities: How They Affect Your Real Estate (Dec. 1, 2019).

And as linked.

Photos (both) by Kampus Production, via Pexels.