Communities that cater to retirees are usually more stable than those that attract first-time home buyers, and therefore the homes have greater resale value. They normally don’t have a three- to five-year selling bubble that can depress prices, and homeowners in these communities often stay until they move into an assisted living facility, a nursing home, or die.
In a stable market, this can result in a relatively even home market with the number of homes for sale roughly equaling the number of buyers. However, in some areas with a high population of seniors, such as in Florida and the Sunbelt, a slow market can create an oversupply that depresses values.
As with any other real estate deal, look at the area sales statistics: list price to sales price and days-on-market before you commit. That super good deal may not be so good if you want to sell and can’t. Resale of Kit and Panel Homes As with any type of real estate, area is a prime consideration. If you choose the area carefully, your home will maintain or increase in value over the long term.
True, a down market will depress home values across the board, but these markets will eventually change and values can go up dramatically in a short time. Three considerations to keep in mind are:
1. Think ‘‘sell’’ when you buy. Assume that you’ll want to move in a few years because of job change or need a bigger home.
2. Keep the loan as low as possible and be wary of adjustable rate mortgages (ARMs).
3. Improve the home with the goal of making curb appeal and improvements that add value.