Mistake 9: Selling a Home Too Soon
If your largest asset is your home, you might be eager to sell your home as soon as you retire so that you can put the money toward your nest egg.
Why This Is a Mistake
It’s important to consider the housing market where you live before putting your home up for sale. It makes sense to sell your home if you live in a city where home prices are skyrocketing, but it is not a wise financial decision if you live in a city where home prices are plummeting.
A 2017 study found that in a handful of cities in the South and Southeast, and particularly in Texas, home prices had decreased $5,000 or more year-over-year.
If you live in an area where home values are falling, consider using your current property to earn additional income, rather than selling it right away. Rent your house to tenants for a year while you try out living in a new area. That accomplishes two things.
That solution gives you a chance to try a different area to see if you might enjoy living there. Plus, you gain enough income to pay your housing expenses while giving the real estate market a chance to rebound in your home area.
