Deciding whether to put your cherished family home, where you remember your children and grandchildren playing, on the market for sale can be a difficult decision.

Should you sell the family home?

At some point after the children have moved out and the retirement parties have ended, a homeowner might look around and wonder if the time has come to let go of the family house. Things you hear in the news about the real estate market may also be weighing heavy on your decision.

A generation ago, most retirees faced a relatively straightforward equation: Cash in on the equity in your home and relocate to a smaller space with lower costs and fewer responsibilities. It's not that straight forward in today's real estate market where many baby boomers are still saddled with large mortgages and little equity in their homes to tap.

My advice? Grab a notebook, pencil and calculator, then work through the steps below before making this major decision.

Calculate what you'd pay to stay

Staying put has its costs. You should think about whether there are any big expenses that are five or 10 years away: Will you need a new roof or siding, or something like a chair lift to get to the laundry in the basement or bedrooms on the second floor? Add up all the maintenance costs related to your current home, including landscaping upkeep, snow removal, ongoing repairs and housekeeping. Can you find people to help with these chores? How much are the taxes and utilities? Are there big assessments coming down the pipeline for roads or schools? Factoring these costs into your current monthly payment will help give a better comparison for the stay-vs.-go equation.


Calculate the possible equity in your home

Find out where you stand, have a real estate agent evaluate your house well in advance of when you might put it on the market. Ask for the maximum and minimum amount you would likely net after broker’s fees and transfer fees, and also subtract an estimate of any improvements you’d need to make to get the house ready for sale. Finally, consider how much moving costs might be and whether they would need to come from your house profits.


Research your next house before you sell

Keep in mind that finding a new home to move into might be harder than you are expecting. A smaller home isn't always less expensive than a larger home when demand is high or the new area is more costly. It helps to know exactly what you’re after in your next residence, and exactly how much you'll have to pay to get it.

First, consider where you may have friends or family and research homes in that area. Do you need to be close to your medical providers or church? Ask a trusted local agent to set up a home search for you so you can monitor how often homes that meet your criteria come on the market and how fast they sell. Try to gauge new or different expenses you'll face if moving to a different neighborhood. Will a new floor plan lead you to buy all new furniture? If you are moving a long distance, what will it cost to hire movers? Are there association fees or higher taxes, or will you spend more for food and entertainment there than you do now?


Call a professional tax accountant      

Moving can bring tax implications to consider. For instance, if you sell your house, any profit over $500,000 for married couples or $250,000 for singles may be subject to a capital gains tax. Your property taxes might be higher, or lower, or your new state — unlike your current one — might tax Social Security income. All of that will affect your monthly budget. The accountant can also give you a list of moving expenses you may be able to deduct.


Call a mortgage planner      

Lending laws have changed and if you plan to finance your next home, you may not qualify on a fixed income like you could 10 or 20 years ago. You may also want to get a bridge loan or home equity loan to buy your next home before you put your current home on the market so that you can move as soon as you find the perfect place without waiting for your home to sell and juggling the whole move in one day. It's also possible you want to buy your next home with a reverse mortgage if you have equity in your current home to do so.


Consider all the options

Don’t rule out selling your house, then renting a new one. If you do so and avoid sinking your equity into buying a new home, you can use the profits from your home sale to supplement your retirement income. This can be particularly helpful if your nest egg is modest but your equity is high.

Maybe you have an adult child that has space to create a mother-in-law suite in their home for you and you can get a timeshare or other vacation property to bounce back and forth.

Is your current home in the perfect location for you long term? You could also decide to use the costs you save by not moving to invest in upgrades to help you age in place. Hire help, like a yard maintenance company or housekeeper. Modify your property so the house is more accessible for the long haul.

Are you lucky enough to have extra space to rent out, should you need the cash in the future? (Check local rental codes and regulations.)


Moving is a big decision. It will be emotional and possibly overwhelming. Proper planning can make the transition as smooth as possible and reduce as much anxiety as possible.


Ready to plan? Call Sarah Marrinan.