Downsizing

Where the real estate buys are now — and next

By Ross Boissoneau | March 3, 2018

Seems like every other week, some publication or website mentions Traverse City as among the best places to retire. Whether it’s Forbes or MarketWatch, Money Magazine, Movoto, GreatRetirementSpots.com, TopRetirements.com, CBS — all tout Traverse City as a great place for the golden years.

Those accolades come at a price, however — and that price isn’t between $150,000 and $250,000. That sweet spot for retiree homes is nearly impossible to come by, especially in or close to downtown. And that’s where most people want to be. “People coming from metro areas are used to having access to amenities. If they’re from Chicago, Indianapolis, Detroit, they’re not looking at Kalkaska or Grayling,” said Chad Brown of Homewaters Recreational Real Estate.

No, even though prices and taxes are typically lower in rural areas, retirees want to be close to everything, ideally within walking distance. Take Denny and Monterey Wheeler. When they retired and sold their two-story Traverse City home to downsize, they’d hoped to remain in Traverse City, but the squeeze on homes forced them to cast their eyes elsewhere. First they looked to Petoskey, then to Frankfort.

Finally they found their new retirement home in downtown Manistee. They see it as an up-and-coming community with plenty of amenities. “You can walk downtown, to the farmers market, the business district, the theater. There are beautiful beaches on both sides of the river. The Nordhouse Dunes are five miles away,” said Denny Wheeler. “We love the town.”

They initially bought a condominium with views of the water, but the Wheelers recently purchased a small home just a few blocks away. “We decided against living in a condo. We wanted a home. We [previously] had a large yard, flowers, trees. It was a lot to keep up with, so we thought we’d downsize and moved here. But we need a happy medium.”

So the Wheelers were able to find not one, but two homes in Manistee. Suzanne Riley isn’t surprised. The longtime Manistee Realtor said the area offers a number of different options that check the boxes of the typical retiree. “Most are within close proximity to the hospital and doctors, Meijer, the casino and beaches,” Riley said. And the price is right, too: “Most are between $100,000 and $200,000, which is probably unheard of in most surrounding areas.”

Don Toffolo, a veteran Realtor in Boyne City, said areas like Boyne City, Charlevoix, Petoskey, and Harbor Springs face the same challenges as Traverse City. “The market is strong, and there’s a demand especially for anything under $250,000,” he said. “[But] there’s a very low supply.”

He, too, recommends looking at areas that might not be on a buyer’s radar. His version of Manistee is East Jordan. “Prices are better, and the town is doing well. It’s developing slowly,” he said.

So, yes to Manistee or East Jordan. But what if you really don’t want to leave the Traverse City area? Turns out there are some options. Tony Dombrowski of Homewaters pointed to some condos currently on the market. But given the current market, they may not be available be for long.

A one-bedroom, one-bath golfview condo at The Bear golf course at Grand Traverse Resort is listed for $118,000. A garden-level condo on Fair Street is listed for $120,000, while one at Georgetown is close to town and listed at $132,000. Another on East Bay at The Beach Condominiums boasts an elevator and an option for the management company located on the premises to rent it out when not in use; it’s for sale at $185,000. “If I were looking around with a buyer client that was interested in downsizing into some affordable living, these are properties I would show them as of today,” Dombrowski said.

For retirees who, like the Wheelers, are looking to downsize but aren’t sure they want to share walls and driveways, Judy Porter offers an option. The veteran Realtor with Real Estate One in Traverse City represents new-build homes she says are “a great alternative to condo living.”

Buyers can choose from one to four bedrooms, one or two baths, on either a crawl space or insulated slab (she recommends the latter) and natural gas or electric. There are no steps, and best of all is the price: They start at $139,900 and typically top out at between $225,000 and $250,000. 

Because these homes are new build, she said they feature the most current energy-conscious features and building methodologies. “Older homes may have huge utility bills. These are very efficient,” Porter said.

While the houses can be built most anywhere in the region, Porter is working on a complete development of such homes in Blair Township, close to Traverse City. She said those who favor condos because they don’t want worry about things like plowing, lawn-mowing or the like can easily hire those services for these freestanding homes. Bonus: Unlike with a condo, there is no association fee.

Toffolo shares Porter’s enthusiasm for newly built homes. He is working to encourage builders to construct new homes that fall within the parameters of what buyers are most anxious for: “With the demand for anything under $250,000, I had one (built) last year at $240,000. It sold within 30 days, closed within 75.”

Now he’s thinking of putting up another.

“There’s a very low supply. That’s why I say it’s time for builders to do it,” Toffolo said.

Still yet another option: Tiny homes. Not that retirees want to live in 250 square feet, with a sleeping loft accessed by a skinny set of steps akin to a ladder. But if a small, efficient home nestled in the midst of a new development is appealing, Dan Kelly may have just what you want. You just have to be patient, since his planned development is not yet under construction. 

Kelly is hoping to build a development at the site of his catering business in Acme. It could be perfect for older people who are looking to downsize but still want to be close to everything. While his proposed “microflats” are geared for investors who want to own rental property, they would also be appropriate for those looking for a small year-round home.

“They can go either way,” he said. His plans call for a variety of complementary businesses, such as coffee shops, restaurants, brewpubs, or other desirable neighborhood businesses. The development would also include green space and trails. “You could literally walk to Meijer,” he said.

But as mentioned, it will be a while before his plans come to fruition. “A lot of things have to come into place,” Kelly said. He’s hopeful that construction can begin a year from now.

A word of warning for those considering tiny homes on their own property. Local codes may mandate a minimum size. “With the tiny house concept there are often zoning problems,” said Brown.