Home prices hit record highs in May, and the market is showing no immediate signs of slowing. With prices skyrocketing, retirees may be considering selling their homes to cash in.
But before you call a real estate agent and list your house on the market, it’s important to consider whether that’s really the right move.
Would retirees be smart to sell?
For many people, retirement is a great time to sell a home. Seniors may be ready to downsize, especially if their kids have left the nest and they are tired of the upkeep of a larger family home. Freedom from work also provides the opportunity to relocate, perhaps to a place that’s more walkable or that has a lower cost of living or better tax rules for retirees.
Selling a home can also free up cash for seniors who might have too little retirement savings. If you have lots of equity in a house, you could cash that in and use it to fatten your retirement savings account – especially if you buy a less…