Prepared by

Mark A. Rusnak“The Satisfaction Specialist”

Associate BrokerAccredited Buyers Representative (ABR)

Internet Marketing (e-Pro) Seniors Real Estate Specialist (SRES)

Certified Luxury Homes Marketing Specialist (CLHMS)

RE/MAX Allegiance505 S. Independence Blvd, # 111

Virginia Beach, VA 23452Ph: 718-8865

Seniors, How To Decide When To Sell ?

Seniors Expo

Virginia Beach Pavilion

August 1, 2004

Topics of Discussion• Personal Introduction • Introduction to SAREC & SRES• Introduction to Seminar• The Mature Market – Where are you?• Stages of Retirement • Economic Reasons $$• Relocation Reasons– Where do you want to live?• Physical Ability – A Forced Move• Lifestyle Changes – Planned and Forced• Cash-Out $ Re-Invest or Improve Situation?• Reduce Responsibilities and Liabilities• 1031 Tax Differed Exchange• Reverse Mortgages – Helps you to stay• Summary and Top 10 Reasons w/ Q & A

• Certified Luxury Homes Marketing Specialist• Seniors Real Estate Specialist• Accredited Buyer Representative• Internet Marketing “e-Pro”• Circle of Excellence “Gold Level”• RE/MAX Hall of Fame Member• $40 Million Dollars in Career Sales• Selling Hampton Roads as a Realtor since

1990

A Seasoned Professional

What is a SRES?What is a SRES?• The Senior Advantage Real Estate Council was

founded in 1998, and administers an internationally recognized SRES training and certification course. It now has over 8,000 members.

• As Certified Seniors Real Estate Specialists, our goal is to help Seniors make wise decisions about: selling the family home, buying rental property, managing capital gains, estate tax implications of owning real estate, obtaining a reverse mortgage, moving to a Senior community, and other related issues facing the mature market.

• Less than 1% of Realtors nationally have qualified for this prestigious and internationally recognized designation (November 2002)

Introduction to SeminarIs It Time To Reconsider Your Housing Situation?

Planned Move vs. Forced Move• In two studies by SAREC (1993 and 2003), Senior home sellers

cited “Change in Family Status” as their top reason for selling• Oftentimes, when a Senior is ready to move, the move is

sudden and due to a lifestyle change, medical reason or the death of the spouse

• We will help you identify some of the signs associated with planned moves, and educate you on issues concerning a forced move, should you ever face one

• We will examine some common, as well as some unrecognized, signs that might indicate a change in your current housing situation might be your best strategy

• In 2003 41% of all home sellers were 55 years or older

The Mature Market• The “Baby Boomers”

– Born between 1946 and 1964• The Rebels = Against Fathers

• The “Silent Generation”– Born Between 1925 and 1945

• There was never a president of the U.S. elected from this generation

• The “GI” Full Retiree – Born between 1901 and 1924

• This generation worked together to help form “America, the Super Power”

• They grew up in the depression

Stages of Retirement• Identifying the Stages of Retirement

– First Generation Retirees• Have retired from their job, or may be drawing SSI• Can still live a productive life unsupervised or

assisted• May still be an active member in the work force,

either by choice or economic hardship

– Second Generation Retirees• May need more support and services than the first

generation, and may be the sudden retirees due to physical abilities or dependency

• Our goal is to help you develop a strategy for these stages, so if they come by choice or other unforeseen circumstance, you will be ready for them.

Economic Reasons• Current Expenses Now Exceed Current Income

– Increasing real estate taxes– Rising utility and insurance expenses

• Both health and home insurance– Increasing maintenance of an aging property

• Leaking roof, inadequate heating or air conditioning unit, exterior landscaping, painting and routine maintenance

• You may now be paying someone to do the things you used to do, and enjoy

– Your SSI or retirement income is not keeping up with the rising cost of inflation and medical expenses

– Are you dipping into your savings to handle the maintenance overload from home ownership?

• Free worksheet to help with your budget and forecast– Are you managing your recourses efficiently?

Relocation• You just want to be RETIRED, and move to…

• Have all your friends, relatives and neighbors moved away? Maybe it’s time for you to consider a move too

• Perhaps you want to be closer to friends or family for regular assistance

• You want to cut down on traveling time to visit family members or grandkids, or maybe just increase the frequency of seeing them

– Maybe every Sunday for dinner

• You want to buy a mobile home and travel

Physical Ability

• A Forced Move– You can no longer maneuver stairs well, and may

need to consider a one level Ranch Home or Wheelchair Accessible Home

• You Have Lost Some of Your Independence– You may no longer be able to drive, or now need

to be within blocks from the market and shopping

• Empty Memories– You may need to separate yourself from all those

surrounding memories that a property holds• Passing of spouse and you need some mental closure

Lifestyle Changes• Not a “Planned” Move, “Change in Family Status”

– Often when a Senior is ready to move, the move is sudden due to a lifestyle change, medical reason or the death of the spouse

– Need to move back up in size • A dependent now needs your help

– Sister, Brother or Grandkids• Planned Move = Empty Nesters

– Kids have gone to college and you don’t need the 5 bedroom 3 bath home anymore

• Planned Move = Retired – No longer need to be close to work– You desire to spend your days on the golf course or in the

garden. Not on yard work or in rush hour traffic!

$ Cash-Out $• Recent Appreciation

– Your current home may be the single largest and most important investment you ever made

• With the dramatic appreciation we have seen over the past few years, now may be the best time to take advantage of it to help fund the rest of your life

• Downsizing– Can release your home’s equity and allow you to use it to

fund a new lifestyle, or purchase a vacation home or income producing property that may eventually be a retirement home

• Own two small places instead of one big one– Second-home purchases by Seniors climbed from

13% in 1993 to 38% in 2003. That’s a 20% increase!• New Tax Laws

– No longer need to buy up: $250,000 & $500,000 exemption

Reduce Responsibilities • “Lock It and Leave It” Living

– Allows you the freedom to go when and where you want without the concerns of a large home and yard to look after, yet the appearance of someone being home

• Get Rid of the Mortgage– Maybe you can take the equity from your larger

home and pay cash for a smaller, more economical home. This reduces your monthly expenses by eliminating a mortgage payment.

• Reduce the Responsibilities You’re Leaving Behind– Division of personal property

• Ensures that your wishes are carried out

1031 Tax Deferred Exchange• The concept is to take the taxable gains from one investment

property and defer them to another “like kind” of property• The new property must be of equal or greater value than the

old relinquished property• The key is to identify the “exchange” properties, in advance,

and never have access to the funds during the transaction– It’s all handled by the Qualified Intermediaries

• Delayed Exchange, most common of 4– 45 days to identify property from prior closing– On one of the identified properties, must close in 180

days or by date of the income tax return for the year of the exchange

• Simultaneous Exchange • Parking Exchange

– Reverse Exchange, Improvement Exchange

Reverse Mortgage• Enables you to stay in your current

home and convert a portion of the home’s equity into cash. Federally insured “Home Equity Conversion Mortgage” HECM.– Must be 62 years of age or older– Home must be free and clear, no current

Mortgage– Either lump sum up front or a monthly– Not taxable; does not count against SSI

• They are complex and should be considered with extreme caution!– Requires mandatory HUD counseling

session prior to completion

Summary• I would like you to consider my services as

an investment in your future and the protection of your asset.– Please stop by my booth, #128, to sign up for my

free monthly newsletter or e-mail– Sign up for Door Prizes = Breakfast for 4 at the

new Town Center City Club, and ADC map books– Special Reports: “It’s Not What You Sell It For,

But What You Get To Keep That Counts” or “Cost Effective Ways Seniors Can Maintain Their Home and Equity”

• Sign up to be mailed or picked up @ a later date

Comic Version of the Top Ten Reasons “How You Know It’s Time To Move!”

• #10 When you first bought the house, you were out in the country. Now that house is part of the city scene.

• #9 You can’t get anything repaired because “They stopped making those parts years ago.”

• #8 The swing set in the backyard has grown roots.

• #7 The plumber’s phone number is on your speed dial.

• #6 You’re on a first-name basis with the handyman.

• #5 The children's rooms have all been turned into guest bedrooms.

• #4 The newspaper lining the guest room dresser is dated July 4,1976.

• #3 You have to move the furniture to see the carpet’s original color.

• #2 You can’t do anything to the exterior of your home without getting approval from the “Board of Historic Places.”

• #1 You haven’t visited the other half of the house in the last six months!

I will go to “Great Depths” to satisfy you !

As a full-time career professional, I have a vested interest in my business. Therefore, providing you with the outstanding service you expect and deserve will only help to strengthen my career with Referrals!

Mission Statement

To provide the highest level of service known to the industry for both my clients and customers.

To help ease the stress and anxieties associated with moving across town or across the country.

To earn the respect and loyalty of every client and customer every day through honesty &and integrity. To earn and maintain the reputation as... “The Satisfaction Specialist”

Thank you for your time and consideration.

I welcome the opportunity to represent you!