When you approach retirement, one of the main considerations is deciding where you want to live next, but there’s no rule saying you have to move anywhere. If you are comfortable in your home and community and have an affordable mortgage, there’s no reason to sell your home when you retire.

On the other hand, there’s a long list of reasons you might decide to sell your home and relocate. You may want to downsize to something more manageable, relocate to a new state (or country) to experience something new or move closer to family. About 25% of U.S. retirees sell their homes and relocate to somewhere cheaper over ten years, Axios reported, citing data from Vanguard.

If you are nearing retirement and weighing what to do with your home, here are five signs that it’s a good time to sell.

It’s no secret that U.S. home values have skyrocketed in recent years due to a combination of heavy demand, limited inventory and overall inflation. The average gross profit on U.S. home and condo sales reached $113,000 during the second quarter of 2023, according to data from ATTOM. That was up 17% from the previous quarter.

On the downside, the average Q2 profit fell 5% from the previous year, continuing a pattern of year-over-year declines. Selling your home now to cash in before profits decline further could be a good financial move that can help fund your retirement.

According to a blog on Ramsey Solutions, it might be a good time to sell if you have enough equity to pay off your current mortgage – plus enough left over to make a 20% down payment on your next home if you want to buy another one. Ideally, you will make enough profit from your sale to cover closing costs, moving expenses and a larger down payment. Another bonus: Putting 20% or more down on a new home means you won’t have to pay private mortgage insurance, which could save you thousands of dollars a year.

A recent survey from GOBankingRates found than most Americans have a long way to go when it comes to affording retirement. More than half of respondents (53%) don’t even have $10,000 saved up. Fifteen percent have between $10,001 and $50,000 saved, while only 6% have between $100,001 and $200,000 saved. If you don’t have much retirement savings – but have substantial equity in your home – selling it now can bring in needed capital.

If you live in a high property tax state such as New Jersey or Connecticut, then selling your house and moving to a state with lower taxes can help you save money. This is especially important for those living on a fixed income. Just make sure that the state you plan to move to has affordable living costs in addition to low property taxes.

If you face health issues that could one day require installing upgrades such as ramps and equipment to accommodate physical disabilities, the cost can be prohibitive. Not only that, but you might need to get rid of these things when it comes time to sell your home because many house hunters won’t need them. Rather than paying for upgrades, it might make more sense to sell your home and either buy or rent a new one that is already equipped for seniors with physical issues.