Owning a home in retirement is, for many, a statement of independence.
Some 73 percent of American retirees say they would do whatever is needed to stay in their home instead of moving to a retirement community, according to a 2025 survey of 1,000 people by Clever Real Estate.
“For retirees, the home is generally their single largest asset,” said Erik Leland, a real estate broker at Oregon-based property brokerage Realty First. “It provides housing cost stability that renting cannot match.”
At the same time, there’s a roughly $540,000 gap between how much people think they need for a comfortable retirement - and how much they actually have saved, Clever’s survey found.
Selling a home that has been paid off - or has a considerable amount of equity - is an option for those who need to boost retirement savings. But is putting a house on the market the best strategy? It depends.
When selling makes sense
Experts believe there are specific situations where selling a home, leading up to or in retirement makes sense.
A four-bedroom home, for example, may be too much house after the kids move out and the owners transition into retirement.
“The clearest case [for selling] is when the home no longer matches the lifestyle,” Leland told The Independent in an email. “For two people maintaining a 3,000-square-foot house with four bedrooms, carrying costs and equity are essentially mismatched for their actual needs.”
That mismatch refers to the cost of owning a home - insurance premiums, property taxes and maintenance - compared to how difficult it is to access the full value of a home. Whereas some of a stock portfolio could be sold off, the same can’t be said for part of a home.
By selling a home in retirement and moving the proceeds to investments, homeowners cash in on their equity and make the funds easier to access, in what is known as liquidity.
“Selling to downsize, and redeploying that extra equity into a liquid, diversified portfolio can provide a meaningful improvement to a retirement outlook, and the impact grows the earlier that transition is made,” Leland said.
Beyond an outsized space, there is the changing needs of the homeowners. Retirees who face mobility issues and own a two-story home may need to sell and find a property on one level, GoldCoast Mortgage President John Donlon told The Independent in an email.
Homes that need expensive repairs can make a home more trouble than it’s worth in retirement, said Todd J. Drowlette, a commercial real estate broker and star of A&E reality show Real Estate Commission. His solution? Sell your home and rent a place for you.
“If your home has … deferred maintenance you have not saved for, then it could be wise to sell the home, invest the money and rent an inexpensive apartment where you have a fixed-cost monthly rent,” Drowlette said in an email to The Independent.
Doing so reduces risk and moves the cost of repairs to the next owner.
“[Selling then renting] defers the risk of major repairs/replacements on your landlord (i.e., roof leaks, plumbing issues, or failed furnaces or air conditioners) that could [cost] tens of thousands of dollars to repair or replace,” he said.
When selling is a bad idea
Selling a home to boost retirement savings isn’t always the right decision, and might see the loss of long-term benefits.
If the home is paid off, selling the house for extra retirement funds might not be the best decision.
“I would advise against selling the home if it is paid off and if they can afford the taxes and maintenance/upkeep in retirement,” Drowlette said. “Why move if you can afford to stay and own your own home?”
And if a homeowner sells a property in a competitive market and goes on to rent an expensive place, that could eat away at the money earned from the home sale, Leeland said.
“I have seen retirees sell a paid-off home, move into a luxury condo, and realize three years later that dues inflation put them in a worse financial spot than the one they left,” he said.
If the current housing market in your area isn’t favorable for sellers, then sit tight.
“Real estate is not an asset you want to liquidate under pressure,” Leland said.
Instead of reacting to a slow market by trying to sell your home to get as much value as you can before prices drop further, consult a financial professional to help plan a sound future that meets your needs.
“Realtors want to help, but they often don't have visibility into your full financial picture and they cannot see how a sales price will affect your overall retirement plan, Leland said. “Financial professionals should work together, so looping in a financial planner gives the real estate agent what they need to serve you at a deeper level.”
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