The home you live in is obviously a huge part of your life, but it becomes even more important as you enter retirement.
And for many people, selling their homes upon retirement is the best move they will ever make. That single action could lead to more money, more freedom, and more comfort.
So should YOU sell your home when you retire? You absolutely should if you can check enough of these boxes…
My first rule for this topic is that it should never be JUST about the money. Of course money is going to be a big factor, but if you have to sacrifice a little bit of it in order to stay in a home you love, in an area you love, and near people you love, then it’s probably well worth it.
So with that in mind, let’s look at what would make it a great idea to sell your home when you retire.
1. What will you do in retirement?
This has to be your starting point. What do you want to do in your post-career life? Do you want to travel? Do you want to start another career? Have you planned no visiting family consistently?
Figuring that out will play a major role in determining if you should sell. If you’ll be traveling constantly, look into options for temporary living and whether or not it would be preferable to keeping up with the costs of your home.
And make sure you don’t let your home be the only thing keeping you from moving to your dream city, or chasing your post-retirement dreams.
2. Does it make sense to downsize?
Whether you plan to move out of the area or stay right where you are, downsizing might be a great reason for selling your home. When children move away, that house for 5 may now only be sheltering 2. If that’s the case, a downsize will almost certainly be comfortable AND a huge money saver.
3. Is your home swallowing your cash?
Sometimes you don’t even realize it when you’re constantly pumping money into your home. Take a step back and look at these things closely:
- Do you have to consistently spend on home repairs?
- Are maintenance costs for appliances and things like that becoming a burden?
- Are your property taxes a major expense?
Upgrading to a newer home will almost certainly be easier to maintain, both in effort and financially. And even a short-distance move could save you thousands a year on taxes and things of that nature.
4. How does your home now compare to one you would be moving to?
Half of the puzzle is where you would be going if you sold your home. Don’t look at the costs for your current home and decide to sell without having a plan for where you’d move and how much the new home would cost.
If you want to move to a different city, but the cost to buy a home in that area is much more expensive, you may be better served to wait a year or two for a better situation.
With those questions in mind, think about selling your home as you enter retirement – it could be the best move of your life.
