Financial Planner Urging To Sell

Dear Phyllis,
I’m a big admirer and
would appreciate your insight
on a personal fi nancial
matter. I’m a widow and my
late husband used to handle
all of our finances. Since his
passing, I’ve hired a financial
planner to help guide me.
My assets include some
stocks, Social Security and a
few CDs. However, my most
significant asset is my home
where I currently live and
feel very comfortable. I have
intended to stay here as long
as I’m able.

The dilemma is this: my
financial planner is strongly
encouraging me to sell the
home now and rent instead.
He believes housing prices
have peaked and that I
could buy again later, once
the market corrects. I’m
conflicted. I’d value your
perspective – what do you
think of this strategy?
— Torn

Dear Torn,
If the only reason you’re
considering selling your home
is because you’re betting that
prices will drop, I think that’s
a mistake. There’s no certainty
that home values will decline.

Trying to time the real estate
market is unreliable. Prices
may remain stable or even
continue to increase.

Another important
consideration: if you’re out of
the market for more than two
years, you risk losing your
current low property tax base
under California’s Proposition
13. That could mean
significantly higher property
taxes if you decide to buy again
in the future.

I understand that
maintaining a home as a single
homeowner can be a challenging
task. Repairs, yard work and
general upkeep take time,
energy and money. These are
valid concerns. If your home is
starting to feel like a burden or
if you’re dealing with physical
limitations, considering senior
housing or purchasing a
smaller, lower-maintenance
property might be a wise move.

But that’s very different
from selling to rent while you
wait for prices to fall. Renting
doesn’t offer stability. Rent
can increase, and landlords
can decide not to renew your
lease — both of which can be
stressful, especially as you age.

Additionally, moving multiple
times in a short period can take
a real emotional and financial
toll.

If your home still suits your
lifestyle and physical needs, and
you’re comfortable there, I’d be
cautious about giving that up
based on a financial advisor’s
market speculation. Stability,
comfort and the security
of a fixed housing payment
are invaluable, especially in
retirement.

Warm regards.

Phyllis