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Maybe you need the cash or have outgrown the large family house.
Keep reading to discover some reasons retireesmay regret selling their homes.
Unexpected Costs of Buying Again
Theres no way around it buying a home is expensive.
That might surprise you if youre not up to date with current market trends.
Other unexpected costs are also easily forgotten.
Closing costs, insurance, homeowners association or condo fees, and property taxes can all be significant.
Plus, dont forget moving costs, purchasing new furniture, and repairs or renovations for your new home.
Unless youre paying for your home with cash, youll need to consider mortgage rates.
The price shock isnt just relevant when buying a new home.
It can also happen if you decide to rent.
Rental prices can also fluctuate significantly and tend to be less predictable.
What seems affordable now may not be in 5-10 years due to inflation.
Selling prematurely can mean struggling to pay rent later in retirement.
Instead, paying off the mortgage and staying in the home is often the better long-term move.
Unexpected Costs of Selling a Home
Like buying a home, selling a home involves closing costs.
These include real estate agent commissions, which can be up to 6% of the sale price.
You also need to consider the tax implications of selling your home.
This rule will also consider how long you have owned and lived in the home.
Taxes and moving costs are often overlooked, Blain said.
Capital gains taxes and real estate commissions can take a big bite out of home sale proceeds.
The total cost to move and set up a new home also tends to be higher than anticipated.
It may makemore financial senseto remain in the current home.
This could potentially leave you with alarger house payment, which you dont want in retirement.
Your home was likely there during the good and bad of many years of your life.
Its normal to have some emotional attachment to it.
Plus, retiring itself can be an emotional event for many people.
Having two big changes at once can be difficult for many people to handle.
Selling a home can lead to a sense of loss and disconnection from familiar surroundings and communities.
For instance, many retirees find themselves missing the neighbors and the community activities they once enjoyed.
Plus, you might have family or friends who live near you.
Overall, selling your home is a big change and can be expensive.
Many people feel ready to sell their homes when they retire.
But before you do so, check that its the right decision.
Thinking through this decision fully can help prevent you from regretting it later.
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