If you’re approaching retirement in New Jersey, one of the biggest questions you may be asking is:
“Should I sell my house before I retire?” 🤔
As someone who’s helped many longtime Bergen County homeowners navigate this exact decision, I can tell you—there’s no one-size-fits-all answer. But there are several smart factors to consider if you want to make the best choice for your lifestyle, your finances, and your peace of mind.
In this guide, I’ll walk you through:
- ✅ The pros and cons of selling before retirement
- 🧾 The impact of New Jersey’s real estate “exit tax”
- 📊 Local market conditions in Bergen County
- 🧳 Tips for downsizing or relocating
✅ Pros of Selling Before You Retire
- Unlock Your Home Equity 💰
Many retirees have most of their net worth tied up in their home. Selling before retirement lets you cash out and use that money to fund your next move, pay off debt, or boost your retirement savings. - Lower Your Monthly Costs 📉
Between rising NJ property taxes, maintenance, and utilities, large older homes can drain your budget. Downsizing to a smaller home, condo, or even renting can reduce your monthly expenses significantly. - More Flexibility and Control 🔄
Making the move before you leave the workforce means you can qualify for financing more easily, handle repairs or showings with less stress, and time your sale to the best market window—not a personal deadline.
⚠️ Cons to Consider
- Emotional Attachment 💔
Your home may hold decades of memories, which makes selling a deeply emotional decision. I always encourage clients to reflect on how their future needs compare to their past attachments. - The Logistics of Downsizing 📦
Sorting, packing, and deciding what to keep can feel overwhelming—especially if you’ve lived in the same home for 20+ years. Working with the right agent (and possibly a senior move manager) makes this easier. - Timing the Market 📅
If the real estate market cools, it might not be the ideal moment to list. But keep in mind: in Bergen County, housing demand among families remains strong for most well-maintained homes, especially near schools and transit.
🌴 Where Are Retirees Moving After Leaving New Jersey?
Many New Jersey retirees are choosing to relocate to states that offer better weather, lower taxes, and a more affordable cost of living. Popular destinations include Florida, North Carolina, South Carolina, Delaware, and Pennsylvania. These states often appeal to retirees for their retirement-friendly tax policies (no state income tax in Florida, for example), access to healthcare, and growing 55+ communities. If you’re considering a move out of New Jersey, I can help connect you with trusted agents in those states and walk you through the steps of selling here and relocating with ease.
💸 What About New Jersey’s “Exit Tax”?
Let’s clear up a common misconception: New Jersey doesn’t technically charge an “exit tax” when you sell your home and move out of state. However, it does withhold income tax at closing (2% of the sale price or 8.97% of gain, whichever is higher) for out-of-state sellers.
If you’re moving out of NJ after your sale, this tax is withheld up front but may be refundable if you don’t actually owe that much in capital gains. A qualified tax advisor can help you file for a refund after closing.
📌 Bottom line: It’s not a penalty for leaving, but it can affect your short-term cash flow—so plan accordingly.
🤝 How I Help Bergen County Retirees Sell With Confidence
I’m Kevin Hill, a full-time Realtor with Keller Williams Valley Realty and a Bergen County resident for over 35 years. I’ve helped many seniors sell the homes they’ve lived in for decades—and I understand how important it is to move forward with trust, transparency, and care.
Whether you want to list your home traditionally or explore a direct cash sale for added flexibility, I’m a hybrid agent who can offer both options.
From preparing the home to coordinating the sale, I’ll walk you through each step and connect you with local resources if you’re downsizing, relocating, or just starting to explore your next chapter.
📈 Next Steps: Free Home Value Estimate
If you’re curious about what your home is worth today—or want to start exploring your options before retirement—I’d be happy to provide a free home valuation and personalized consultation.
Click below to get started or contact me directly at kevin@njhousepartners.com.
Let’s take the next step together. 🚶♂️🏠