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However, many financial experts say selling your house is the last thing you should do when you retire.
However, the truth is that selling your home isnt a one-size-fits-all for everyone.
You have to pay a realtor and transaction fees.
David Brillant, an estate planning attorney atBrillant Law, said those transaction fees are not cheap.
Transaction costs to sell a home are significant.
[Theyre] often 5-6% of the sale price in commissions and closing costs.
Aclado said the costs dont end at transaction fees.
Brillant said if you might, hold onto your home and save on those fees.
Ive seen clients save tens of thousands by holding onto their homes.
Home values have historically outpaced inflation over time.
While values may drop at times, holding the property for decades allows for solid returns.
Many of my clients homes have tripled or more in value over their lifetimes.
This provides an opportunity for significant wealth building.
Neal K. Shah, the CEO ofCareYaya, agreed, saying that your home is a protection against inflation.
By keeping your home, youre essentially locking in your housing costs and protecting yourself against future market fluctuations.
This is particularly important for retirees on fixed incomes.
Aclado said selling your home could be ending the potential for generational wealth in your family.
Your home is wealth that can be passed down to your kids.
This not only provides extra income but also offerscompanionship and assistancearound the house.
Potentially Higher Property Taxes
Brillant said that California homeowners should definitely hold onto their homes.
Property taxes are often lower for long-term homeowners under Proposition 13 in California.
Selling the home means losing this tax benefit and paying significantly higher taxes on any replacement home.
For retirees on a fixed income, avoiding a property tax increase is critical.
Renting costs money and leaves you vulnerable to rent hikes.
Cabrera is a landlord himself and said hes had to raise the rent to keep himself afloat.
As a landlord, Ive raised rents to match increasing costs and market rates.
Instead, Cabrera said to hold onto your home and reap the benefits.
In retirement, fixed housing costs provide stability, Cabrera said.
Your home locks in affordable housing and avoidsunpredictable rent increases, allowing you to better budget your retirement funds.
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