When you’re close to retirement, it’s tempting to put your home on the market and downsize. You may be tired of maintaining your yard, paying for repairs, and spending money every year for general upkeep. Selling the house can give you some much-needed cash flow while allowing you to move into a smaller home closer to friends and family. However, if this sounds like something that you’d want to do, then it’s important to consider several items before making the decision. Selling your home during retirement should not be taken lightly. It’s a big decision that should only be made after careful consideration of all the factors involved. Here are 4 benefits you need to know before selling your home:

Selling your home can help you generate additional funds for many different reasons. Selling your home might mean that you have enough money to take a dream vacation or pay off debt. You never know what else selling your home could do for you until you get an estimate on your house. According to AARP, selling a home in retirement can provide significant financial flexibility.

Selling your home is also very convenient because it allows you to downsize into rental housing, which usually has all the necessary amenities that are just too difficult or expensive to maintain when living in a larger space. Leaving behind everything that was once familiar and comfortable – like where you used to sit in the bathtub with the sun shining in through the window – will make things much more stressful than they would be if this is not something you have to do. Selling your home eliminates many of these concerns and makes the entire retirement process much smoother. This Old House provides a guide to downsizing in retirement for added convenience.

Selling your home can also provide you with a sense of security and well-being in retirement. Knowing that you no longer have to worry about maintaining a large space or dealing with strangers who may come to your door can be incredibly comforting. In addition, selling your home can free up some money each month that can be put towards other important things, like health care costs. Selling your home is an excellent way to make sure that you can focus on enjoying your retirement years without having to worry about the stresses of homeownership. For more information on maintaining health and safety in retirement, visit CDC's Aging & Health page. 

The cost of property taxes appears to be on an upward trend. Your property tax may very well outpace the appreciation of your home value, resulting in an ‘investment’ that loses value over time. Is the property acquired originally to suit the needs of a large family? Are all of those additional rooms now used only when relatives or grandchildren visit? Property taxes are more expensive in larger homes. When it comes to a property, retirement planning is not about getting a single solution; instead, it’s about drawing up an individualized and distinct picture of one’s finances. Find a dependable financial counselor or planner who will ask the right questions, assist you in doing the math, and consider all of your concerns. According to Kiplinger, strategic retirement planning can help manage and reduce tax burdens.