What Are the Hidden Costs of Selling Your Home in Retirement?
When selling a home later in life, many seniors only think about finding a buyer and collecting the proceeds. But from taxes and repair costs to moving and professional support, retirees often face several unexpected expenses. Understanding these early can make the process smoother and help preserve your financial security.
Certified Senior Advisor and San Diego real estate agent Melina Rissone works closely with retirees across neighborhoods like Mission Hills, Bay Park, and University City. She helps clients prepare for the financial realities of selling a longtime home while ensuring they plan appropriately for their next stage of life.
Pre-Sale Repairs and Updates
Older homes in areas such as Clairemont, Hillcrest, and South Park often need light upgrades to attract buyers. These costs can include painting, landscaping, and repairing outdated fixtures. In some cases, deferred maintenance like roof leaks or plumbing issues must be addressed before listing.
Especially for homes that are older or not as carefully maintained, it can help to start with a pre-listing inspection. It’s an affordable step that reveals potential problems and helps you decide which repairs matter most. Knowing these costs up front prevents unpleasant surprises during negotiations and keeps the sale on track.
Staging and Presentation
In competitive neighborhoods like the ones in and around Downtown, presentation plays a major role in how quickly a home sells. Professional staging can make a smaller or older home feel inviting and spacious. Costs typically range from $1,000 to $5,000 depending on the size and condition of the home.
If the prices seem too steep, virtual staging is another option. Melina partners with trusted local stagers who create clean, appealing visuals that help listings stand out online without the higher costs of furnishing.
The Benefits of a Certified Senior Advisor
Selling during retirement can be emotionally and logistically complex. Many older homeowners benefit from working with specialized professionals who understand these transitions. Certified Senior Advisors like Melina Rissone are trained to listen carefully to your needs, and can connect you with trusted partners including:
Financial advisors who help align home sale proceeds with retirement income planning
Downsizing specialists who handle decluttering, estate sales, and move management
Senior relocation consultants who assist with transitioning into new communities or care facilities
Having this team in place streamlines the process and ensures that each step (prepping, selling, moving, and settling in) fits into your long-term financial and personal goals.
Real Estate Commissions and Transaction Fees
Agent commissions remain one of the largest selling expenses. In San Diego, the average total commission ranges from 5 to 6 percent of the sale price. This fee covers a wide range of services including marketing, professional photography, open houses, negotiation, and protection from much of the legal liability associated with selling a home.
Other common closing costs include escrow fees, title insurance, and document preparation. Home sellers in San Diego often spend another 1 to 2 percent on these transaction expenses. Melina helps clients review their seller net sheet before accepting an offer, ensuring they’re fully aware of each cost before closing.
Taxes and Capital Gains
Many retirees are surprised by the tax implications of selling their home. If the property has appreciated significantly, you may owe capital gains taxes on the profit. Federal law allows exclusions of up to $250,000 for single sellers and $500,000 for married couples if the home has been your primary residence for at least two of the past five years.
Melina Rissone often advises her sellers to consult a tax professional before listing. A financial advisor or CPA can help determine whether selling now or later will reduce your taxable gain. Strategic timing and reinvestment of proceeds can often minimize taxes and preserve more of your equity.
Senior Living Costs in San Diego
For many retirees in San Diego, selling means moving to a smaller home or entering a senior community of some type. Moving companies often charge thousands of dollars depending on distance and belongings. Storage units and moving insurance only add to this total.
If your next home is part of a retirement or care facility, additional costs may include entrance fees, monthly maintenance, or service charges. Senior options in San Diego can range widely, from $3,000 to $10,000 per month depending on location and care level. Independent living trends toward the lower end of the spectrum, while assisted living usually falls between $4,500 and $7,000, and memory care often averages $6,000 to $9,000 based on the required amount of support.
It’s important for seniors to factor in all of these costs into their timeline and selling strategy so they’re not caught off guard.
Market Timing and Pricing Costs
Market trends play a major role in how much you’ll net after selling. Depending on whether San Diego (and your specific neighborhood) is in a buyer’s market, a seller’s market or something more balanced, a typical sale could take a week or multiple months. If your home takes longer to sell, ongoing expenses like property taxes, utilities, and insurance can reduce your bottom line.
Melina tracks neighborhood trends carefully to help retirees choose the best listing time. Her data-driven approach ensures homes are priced correctly and marketed effectively, limiting holding costs and reducing the risk of price reductions.
Other Home Selling Costs
Even after the sale, other surprise costs may arise. Repairs negotiated during escrow, document fees, and county transfer taxes can quickly add up. Certain areas such as Carmel Valley and 4S Ranch may also include additional local assessments.
Melina Rissone provides her clients with detailed net sheets that break down every expected and possible cost before the home goes on the market. By planning early, retirees stay informed and avoid last-minute stress.
Planning Ahead for a Confident Sale
Selling a home in retirement is both a financial transaction and a life transition. Understanding all the hidden costs involved helps retirees make better choices and ensures they keep more of their hard-earned equity. The key is preparation, trusted guidance, and realistic expectations.
Across San Diego, from Point Loma to University City, Melina Rissone combines local expertise with senior-focused service. Her goal is to help retirees sell efficiently, transition smoothly, and move forward with financial peace of mind.
Thinking about selling your home in retirement? Contact Melina today to request a personalized consultation and find out what your home could sell for in today’s San Diego market.
Melina Rissone, Associated Real Estate Broker Coldwell Banker Global Luxury, Certified Senior Advisor (CSA) and Real Estate Collaboration Specialist – Divorce (RCS-D) in San Diego. I help people going through divorce in San Diego figure out what to do with the house—whether you're ready to sell now or just need a neutral opinion. I help seniors looking to retire in San Diego figure out what to do with the house—whether you're ready to sell now or just need a neutral opinion.
Melina Rissone
Having sold properties for more than 20 years and earning various prestigious awards throughout the course of her career, Melina Rissone has more than earned her reputation as one of San Diego's most skilled and trustworthy real estate brokers selling homes and luxury condominiums. Her loyal clientele would share that Melina brings structure and planning to chaos. She specializes in supporting her clients and their referrals; families and individuals going through divorce and seniors and active adults planning their moves and financial decisions during their retirement years.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing certified.
Certified Senior Advisor by the Society of Certified Senior Advisors
Cartus Network Inventory Specialist and Cartus Network Marketing Specialist since 2015.
RCS-D Designation, a Real Estate Collaboration Specialist for Divorce.
SRES Certification through NAR is a Seniors Real Estate Specialist certification.
Melina is bilingual in English and German.
Recognized as the Top 4% of all real estate brokers in San Diego County in 2021 and the Top 3% of Coldwell Banker International.
Coldwell Banker Presidents Elite Award.
Recognize as the Top 2% of Coldwell Banker West in 2024.
Coldwell Banker Global Luxury and Institute of Luxury Home Marketing Certified.
We were looking to buy a place in SD Northpark and luckily we met up with Melina to show us multiple condo. She is very friendly, personable and very professional agent. We would not hesitate to work with her again.
-Chau N.
