5 Key Signs You Should Sell Your Home When You Retire

 

5 Key Signs You Should Sell Your Home When You Retire

Buying a house is one of the pillars of the American dream — and selling that house when you retire is another part of the dream because it can help ensure a more enjoyable retirement. That’s why people 60 and older are often the most active home sellers and buyers in the United States.

About one-quarter of U.S. retirees sell their homes and relocate to somewhere cheaper over any given 10-year period.  But that’s only one of the reasons retirees sell their homes. Here are five key signs that you should sell your home when you retire.

1. You Are Sitting on a Cash Cow

If you own your home outright or have built up a lot of equity, selling it and raking in the profits can help bolster your nest egg and fund your retirement. Better yet, you can command top dollar in the kind of seller’s market that has dominated U.S. housing in recent years. If enough offers come in, you might even find a buyer willing to pay cash for your home.

2. The House Is Too Expensive

Once you’ve retired, you’ll likely be living on a fixed income that’s less than what you earned in the workforce. If you find yourself struggling to keep up with house payments and related bills, then it’s probably a good time to sell your home and either rent or downsize to a less expensive one.

3. Your Home Is No Longer a Good Fit

When people reach retirement age, they often find that the home they lived in during the previous decade or two no longer fits their lifestyle. Maybe you want something smaller, easier to maintain, or equipped with more modern features. You might also be dealing with mobility issues that require a single-story home. In this case, it’s a definite sign that you should sell the home.

4. Your Property Taxes Are Too High

In some U.S. markets, you’ll be stuck with a property tax bill of $10,000 a year or higher. This can seriously cut into budgets for many seniors. Selling your home and renting will eliminate property taxes. Alternatively, you could move to a state that either doesn’t levy property taxes against seniors or offers tax breaks for retirees.

5. You Want a Change of Scenery

Many seniors move to warm-weather climates when they retire, but there might be plenty of other reasons you want to relocate. Maybe you want to experience new things, move closer to family or friends, or live in a safer, more senior-friendly environment. In these cases, your current home can feel like an albatross around your neck, which is sign that it’s time to sell.

Author:  Vance Cariaga

August 9, 2023