Practical Steps to Selling Your Home in Retirement

You reach a point as you approach retirement, or after you’ve finally stepped into it, when you look at your home and wonder whether it still fits the life you want. You may love the space, the memories, and the neighborhood, yet feel the growing strain of maintenance, stairs, taxes, or the distance from family.

Selling a home at this stage isn’t just a real estate decision. It’s a chance to redefine your daily life and protect your long-term security.

You start weighing several realities: whether you want to relocate to another part of the country, whether your physical health still allows you to keep up with the home you have, whether you can continue living safely and independently in that space, or whether you simply feel ready for a new chapter and a change of scenery.

These questions can stir a mix of hope and hesitation, because they touch both the life you’ve built and the life you want moving forward. You also have to consider the rest of the family and how they react to you selling the home and moving.

There are practical, research-based steps that help you make informed, confident choices grounded in your goals, your budget, and your future care needs.

Clarify Why You Want to Sell

You make your best decisions when you’re clear about your motivation. Retirees sell their homes for many reasons. Common examples include wanting lower expenses, easier upkeep, or a warmer climate; needing to be closer to adult children; or seeking a layout that supports aging in place.

Your “why” guides every other step:

• Where you move
• Whether you downsize or “rightsize”
• How quickly you want to sell
• What you want your budget and lifestyle to look like

Once you understand your motivation, the process becomes much less overwhelming.

Understand How Selling Affects Your Retirement Budget

Your home is often your largest asset, but it can also be one of your biggest expenses. Selling can free up cash and reduce monthly bills, but your new living situation may introduce costs you haven’t faced before.

Before listing your property, consider:

• Property taxes in your next location
• Homeowners association fees
• Rent or mortgage payments if you buy again
• Travel and transportation needs
• Proximity to healthcare and specialists
• Maintenance for a smaller or more accessible home

A clear financial picture helps you avoid surprises once you move. However, housing choices also influence future long-term care needs. A single-story layout, walk-in shower, wider hallways, and safer flooring can delay or reduce the need for paid care.

Choose the Timing That Supports Your Goals

Real estate markets shift with interest rates, inventory, and seasonal trends. Your health, finances, or family needs may influence your timing.

Some retirees want a simple, fast sale. A local homebuyer service offers quick closings without repairs or showings. Homebuyer services operate in every state, but the specifics vary, and no state “bans” them outright. However, regulations, licensing requirements, and consumer protection rules differ, affecting how these companies operate and what they are allowed to do.

The benefit of this type of cash sale is that they offer quick closings without repairs or the need for showings. This option works well for people who want a clean transition without months of uncertainty.

If you are considering this type of sale, be sure to consider these common sense steps:

• Get multiple offers if possible
• Check the buyer’s reviews, licensing, or franchise standing
• Confirm proof of funds
• Avoid signing contracts under pressure
• Consult an attorney before closing, especially if selling as-is

These steps ensure you get a fair offer and avoid scams, which are important for protecting long-term financial security.

However, you may prefer a traditional listing to maximize equity, although that can take more time and effort. If you choose this path, focus on finding a real estate agent with strong experience in selling homes in your price range and neighborhood. Ask for recent comparable sales, review their marketing plan, and check verified reviews from past clients. Interview at least two or three agents to compare communication styles, commission structures, and their strategy for reaching qualified buyers. The right agent should understand your goals, protect your interests, and make the process as smooth as possible during a major life transition.

Neither approach is better, but the right path depends on your:

• Timeline
• Stress tolerance
• Financial priorities
• Willingness to manage repairs, showings, and negotiations

If you want simplicity, an as-is sale may bring peace of mind. If you want top dollar, a traditional agent may make more sense.

Review Tax Implications Before You Sell

The IRS allows many homeowners to exclude part of their capital gains when they sell a primary residence. According to IRS Publication 523, qualifying individuals may exclude up to $250,000, and married couples filing jointly may exclude up to $500,000, depending on residency and ownership rules:

If you:

• Rented part of your home
• Used it for business
• Made significant improvements
• Haven’t lived there during the entire last five years

your tax calculation may change. A tax professional can help you avoid avoidable tax bills and protect more of your equity.

Focus on Rightsizing, Not Just Downsizing

Many retirees assume they must go smaller, but the real goal is to find a home that supports the life you want. That may mean downsizing, but it can also mean choosing a home that reduces daily burdens or improves safety.

Consider your needs for:

• Walkability
• Climate
• Accessibility and mobility
• Proximity to adult children
• Access to healthcare
• Safety and neighborhood stability
• Privacy and noise control

Rightsizing means choosing the home that fits your next chapter, not just your square footage.

Prepare for the Emotional and Physical Work of Selling

Sorting through decades of belongings, preparing for showings, and managing repairs can be physically and emotionally draining.

Retirees often choose one of three paths:

• Selling as-is to avoid renovations
• Hiring estate services to help with belongings
• Using a staging company to present the home for the best price

Be honest with yourself. Do you have the energy? Do you want family involved? Do you want to avoid months of disruption? The right choice is the one that supports your well-being.

Consider Your Future Healthcare and Long-Term Care Needs

Where you live affects your access to extended care and your likelihood of needing more support later. A home with fewer hazards can help delay mobility issues and reduce your long-term care risk.

Key features to think about:

• Bathroom accessibility
• Stair-free entry
• Proximity to hospitals and specialists
• Safe lighting and flooring
• Reliable transportation

Why does this matter? Because your care needs will likely grow over time. The U.S. Department of Health and Human Services estimates that 56 percent of adults will need help with two or more activities of daily living or supervision due to cognitive decline at some point.

If the wrong housing choice accelerates mobility decline, you may face higher long-term care expenses. The right home can extend your independence.

You can compare long-term care costs by state and ZIP code using the LTC News Cost of Long-Term Care Calculator.

Update Your Estate Plan After the Sale

Your home may be part of your inheritance strategy. Selling or downsizing changes how assets pass to your beneficiaries.

Review and update:

• Your will
• Any living or revocable trust
• Powers of attorney
• Beneficiary designations
• Asset distribution strategies
• Life Insurance
• Long-Term Care Insurance

A home sale is often a natural time to meet with an estate planning attorney or financial planner. 

Thoughts to Carry with You 

You don’t make a decision like this lightly. Selling your home in retirement touches your finances, your security, your family, and your sense of self. Yet with clear goals, a solid financial plan, and an honest look at your health needs, you can make a choice that supports your independence and peace of mind.

Ask yourself: What kind of life do you want the next decade to feel like?

Once you answer that, every other decision becomes easier.

Generally, you start planning for future long-term care before you retire. If you haven't done so, make long-term care planning part of your move, explore the LTC News Education Center, compare Long-Term Care Insurance options, and search the LTC News Caregiver Directory for local resources when a loved one in your family needs support.