Whether Or Not You Should Sell Your Home When You Retire

selling-home-retirementDepending on your financial situation and comfort, selling your home could be beneficial for you.

When you are purchasing a home, it’s pretty much going to be one of the largest investments that you are going to make in your lifetime – or at least close to it. As you enter retirement, most of mort you mortgage should be already paid off or close to being paid off. Now, throughout the lifetime of owning a home, you’re already aware that it’s built up a sizable amount of equity and has become a valuable asset. Whether or not you should tap into that asset comes with both emotional financial factors that you should consider.

Boosting Retirement Account

A survey has claimed that only 21% of Americans are confident that they have enough assets to get them through their retirement period. That’s not a very optimistic figure when you think hard about it. However, depending on your situation, selling your home could provide your retirement account with that necessary boost.

And, with the Taxpayer Relief Act of 1997, you could sell your home and make up to $250,000 without capital gains taxes. This leaves the door open to financial freedom if you do decide to part with your home and allows you to purchase a smaller home with a significant amount of savings that you can use to enjoy your retirement to the fullest. However, there are numerous emotional factors that come into play when you do decide to sell your home, which could prevent you from making the transaction. And, this is perfectly fine. When it comes down to it, make the decision based on your comfort level.

Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that has nearly 5,000 associates.