Real Estate for Retirement Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

2026/06/072026/06/07

Downsizing Checklist – With Housing Costs Surging Is This a Good Move to Reduce Expenses?

What are your total transaction costs on the sale AND the purchase
What are the holding costs on the new home
Will you have to pay a capital gains tax on the sale of your current home
What are the moving costs
If you will be using your equity from the sale of your home to purchase the new home without a mortgage, how will losing the interest deduction affect your personal taxes
Will you need to store any of your belongings
Be sure to factor in your health care costs & inflation in your new location
It’s MUCH easier to accomplish a down sizing in your 50s & 60s than in your 70s & 80s
What repairs & delayed maintenance will be necessary of your current home to bring it to move-in condition
Can you afford the repairs & potential staging costs
If you will be purchasing your new home before your old home is sold can you afford the overlapping holding costs
Don’t waive a home inspection if you are buying a new build
Can you afford the inflation on home services in your new neighborhood
Will you regret getting rid of your “stuff”
You’re going to get decision fatigue
Will you have seller’s remorse
Make sure you’re not down sizing too small – you don’t want to have to move twice
If you are moving to a completly new area, consider renting before buying

Property taxes, hazard insurance and HOA fees are all increasing and up to 65% of homeowners with mortgages have “escrow shortages” — many were qualified at higher percentages of their income. In my opinion, I would not originate a mortgage (principal and interest) at more than 20-22% of my income because of it. With escrow shortages, your lender keeps the money on a monthly basis that was your old escrow PLUS the amount needed for your new escrow to meet ongoing payments. The average shortage in escrow balances was $2,157.00!!! Property taxes have increased by approximately 15% between 2019 and 2024 (Cotality.) Property insurance has increased approximately 70% between 2019 and 2025, says the Dallas Fed (March.)

This insurance issue is enough on its own to force some homeowners into falling behind on mortgage payments because they cannot move/downsize or otherwise lower their costs.

2026/04/152026/04/15

Arbitrage Opportunity

Things to consider for a current real estate opportunity window:

If you have property in a hot market (NE, Midwest) but want to relocate/retire/downsize to Florida in the near future, take advantage of your seller’s market where you are AND the buyer’s market where you want to be in Florida. Of course, that’s only one aspect. You need a real estate professional in Florida to answer questions, find appropriate properties, and guide you through your purchase and assist you in your move. Make sure it’s someone who is up to the task!

2025/11/112025/11/11

Are You “Location Broke?”

Wait, what? Is there really a state of being “location broke?” YES! There are some states where $10k can buy you what would cost $1M in California, for instance. If you’re constantly feeling broke because you live in a high cost state, my advice is that you could move to a more affordable state (you’re not a tree.) Some people just will not consider a move under any circumstances. Moving is a hassle, but you could gain savings, peace of mind, an easier pace of every day life and tha ability to retire if you do consider it.

2021/08/012024/10/14

2024 Retirement Update (Since 2021)

Tried to retire, but it’s not taking hold…if you need the advice of an experienced professional, let me know. I am not a member of any REALTOR organization. What you are hearing about the new required practice changes for REALTORS take effect on August 17, 2024. In some instances, practice changes for REALTORS took effect on August 1, 2024.

The largest uproar over their practice changes are requirements for buyers to sign “showing agreements” for VIRTUAL or IN PERSON property showings.

2021 (Original Post)

It’s been a monster 3 years. Trying to recover from losing a large number of family members (before the pandemic) with the inability to travel for funerals beginning (just after losing a son) and then dealing with everything this pandemic has dished out, as well as reaching full retirement age in the middle of this mess, well let’s just say that I’m retired.