Why You Should Consider Selling Your House Before Retirement

Should I Sell My House When I Retire?

Retirement can be a lovely time, but it also has its share of difficulties. There are a number of choices accessible to you if you’re considering selling your home when you retire. Whether you need to relocate for a completely new lifestyle or raise money to pay the bills, selling everything and moving on has benefits and downsides. There is no reason why you can’t make the best decision for your situation as long as you consider all of your possibilities.

What Benefits Do You Get If You Sell Your Home When You Retire?

  • Increase your post-work income.
  • Live where and how you wish to live.
  • Avoid future changes in housing prices.
  • Avoid paying for repairs and maintenance.
  • Reduce utility costs
  • Lower your council tax obligation
  • Move to a one-story home.

Of course, you will still need a place to live, so you might want to think about downsizing, either in terms of the size or location of your property. However, you must pick the best option for you, regardless of the route you decide to take. Decide whether getting the best price or a rapid sale is more important to you, and act accordingly.

What Alternatives Do You Have to Sell Your Home When You Retire?

Equity release

An equity mortgagee plan might be a good choice if you wish to sell your house but stay in it (providing it is not in negative equity). To qualify, your home must be yours outright, and you must be at least 55 years old. You will be granted full or partial ownership of your home in exchange for a recurring salary or a one-time cash payment.

What you give your family in your will will depend on how you raise the money, though. You can spend the money however you like, even on house renovations. You don’t have to make any payments. Your debt (plus the agreed-upon interest) is paid back to the lender when the property is sold after you and your partner die.

Lifetime mortgage

A different choice to think about is a lifetime mortgage, which enables you to withdraw cash from the equity in your property as a lump sum or in recurring installments. You consent to a set interest rate, and the money you borrowed is repaid when you pass away or join the system for care. But once more, this will significantly reduce the equity in your property and limit the bequests you can make to your loved ones.

However, using this method to withdraw money from your house can be pricey. Compound interest is what the business will charge you, which is interest on both the money you initially borrowed and the current debt you have racked up.

Home revision

A home reversion is a choice that will lower the amount of inheritance tax that is paid on your estate. Simply put, a one-time lump sum loan is obtained in exchange for a portion of your home. After that, you are allowed to live there until you pass away. However, the longer you live and remain in your home, the greater the portion of your estate that the loan provider will receive after your death.


Moving from a larger home to a smaller one is referred to as “downsizing.” Downsizing usually means selling the house you live in and buying a smaller, less expensive one. This could be a good choice. Any additional funds can be used for a variety of purposes, such as:

  • assisting kids in obtaining housing
  • preventing upcoming “mansion taxes.”
  • Holidays
  • improved quality of life during retirement
  • luxury purchases like automobiles

There are a few more expenses you should take into account when estimating how much money you’ll need to raise by selling your house to achieve your goals:

  • Legal costs
  • Fees for surveys
  • Fees charged by real estate agents
  • Stamp fees
  • Variable interest rates
  • Moving expenses

Time is another issue to think about. The price of the entire procedure is likely to increase the longer your home is on the market. In addition, since you’ve worked all your life, you want to start taking advantage of your retirement as soon as possible. You can completely ignore the open real estate market if speed is of the essence.

Sell your house as Soon as possible to a Home-buying Firm to Jumpstart Your Retirement.

Your current home could get in the way of your retirement plans, especially if you want to move. Even if everything goes according to plan on the open market, you won’t be paid for at least three months after you list your house.

The old way of selling a home can lead to a number of problems and issues, many of which could cause the sale to be put off or even stop. So why delay retiring when you can sell your house in a few short weeks?

You can have the security you need for retirement by selling your house to a company that specializes in buying houses. You not only learn the fair price depending on the market at the time, but you also learn how long it will take to obtain your money and begin your new life. You don’t have to make sure that there is marketing, nonstop house-hunting, price haggling, property chains, conveyancing, and anxious waiting. Simply accept the offer, and the home buyer will take care of the rest. It usually doesn’t matter if your property is freehold or leasehold in this process, so don’t worry about it.

Your home might easily fund your retirement plans because of the long-term trend of rising housing values. Since giving up your job permanently is a big decision, you should be certain that you have the money you need to retire comfortably. If you use the value of your home wisely, you should be able to plan for a comfortable retirement.

Greg Bilbro

Greg Bilbro

Greg Bilbro is the CEO and co-founder of GeoFlip. After a decade of successfully flipping hundreds of distressed residential properties himself, Bilbro founded GeoFlip. His single focus is to deliver in-bound leads and build 7-figure results for REI's nationwide. His history of 20+ years as principal buyer, 10+ years generating leads and 2,600 Conversion Coaching hours makes him an authority in the lead gen space. Prior to entering the real estate space, Bilbro was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities. Soon after being named “Rookie of the Year”, he was promoted to become the youngest Partner nationwide at New York Life at just 25 years old. Bilbro is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity.”