In recent months, several of my older clients have decided that they cannot afford to move into a senior residential community as planned.  They’re concerned that they can’t sell their homes in this market or, if sold, the price won’t be enough to pay the entrance fee.  Since entrance fees can cost $100,000 to $500,000, making a move is often contingent upon a sale.  Meanwhile, retirement communities watch their occupancy rates fall and their waiting lists shrink.

Are you having this conversation with your parents?  If so, be sure to ask lots of questions and help your parents to consider all of the options before making a final decision.

Get All the Facts

First ask:  Is it true?  As we’ve all read, the housing crisis has affected some areas very dramatically indeed.  Even so, real estate markets are very individual.  A three-bedroom house in good repair on a quiet street in an excellent school district will sell in good times or bad.  A house on one street will sell, while a nearly identical house on the next street won’t.  Encourage your parents to contact an experienced realtor familiar with their specific neighborhood for a free evaluation of the property. 

How much can your parents expect to realize from the sale of their house?  It depends upon the location and condition of the house, the local neighborhood, and access to good schools, medical centers, public transit and neighborhood services, as well as the sale prices for comparable properties in the area.  Again, an experienced realtor can help shed light on your parents’ particular situation. 

What is the condition of your parents’ house?  Poor maintenance, old appliances and decades of clutter may put off potential buyers.  According to a 2008 survey from the American Seniors Housing Association, nearly a quarter of seniors haven’t made a home improvement in 10 years, and many simply do not have the financial resources to make improvements at this time.  A real estate professional can help your parents see their property from the buyer’s perspective.  Even if major improvements are not possible, you and your siblings can help (or hire professionals to help) your parents declutter and deep clean, which, perhaps with a fresh coat of paint, will enable buyers to see the house’s potential.

What Retirement Communities Are Doing to Help

Retirement communities around the country are offering new programs to help seniors sell their homes, reduce initial costs and maintenance fees, and working with banks to offer low-interest loans.  Even if you contacted a retirement community six months ago, ask again.  The answer might surprise you.

Consider the Alternatives

Is there a less expensive option? The answer will depend upon how well – and how mobile – your parents are and whether they are suffering any serious health problems.  Would they consider downsizing to a smaller apartment or townhouse to reduce the worry and expense of home maintenance?  If medical care is a concern, would they consider a board and care facility near you or one of your siblings? 

Aging in Place

Is it possible or advisable for your parents to "age in place"?  Can their home be improved or adapted to allow them to live there in comfort and safety?  According to an AARP survey, 87 percent of seniors over 65 would prefer to stay at home if they could do so safely.

The top home improvements seniors make to age in place include levered doorknobs, grab bars in bathrooms and showers, handrails on both sides of stairwells and on front and rear steps, a bathroom with a bath/shower as well as a bedroom on the first floor, widened doors to accommodate wheelchairs, and ramps for those using walkers and wheelchairs.  Some of these are relatively low-cost items.  For major improvements, your state or local community may offer financial assistance for seniors.

Are there community resources to help them with transportation, light housekeeping, meals and groceries, or assisted living in their own home?  Some communities offer support services for seniors, such as Seniors at Home (www.seniorsathome.org), a non-sectarian program offered by Jewish Family and Children's Services of San Francisco, the Peninsula, Marin and Sonoma Counties.  The National Aging in Place Council (www.naipc.org) offers valuable information, including a recommended reading list and a free Guide to Aging in Place.

What Can We Do Now?

Things are not working out the way we or our parents expected or hoped.  Our parents may be frightened or discouraged by doomsday real estate reports in the daily newspaper or on the evening news. We can assist by staying calm, doing our research, and helping our parents to consider all of the available options from a fresh perspective.