The biggest real estate investment most Americans will ever make is the home they live in. Some of their biggest financial mistakes also involve real estate — whether it’s buying more house than they can afford or not doing enough to boost a property’s resale value.
For retirees, the problem is magnified because many live on fixed incomes. If you make a major mistake with real estate, it could have a devastating effect on your financial security and quality of life.
Read More: I’m a Realtor: 5 Cities Retirees Are Moving To in 2025
Find Out: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
Here’s a look at five common real estate mistakes that retirees make, according to Damarys Cover, Seniors Real Estate Specialist with Damarys & Co. Group at Fox & Foxx Realty.
Also see five money questions to ask real estate agents before relocating in retirement.
Downsizing Too Quickly Without a Clear Plan
Cover specializes in helping retirees, seniors and their families navigate the transition to new housing, so she has plenty of experience when it comes to noticing and addressing common mistakes. One of the biggest mistakes she sees is rushing to downsize to a new home.
“Moving too quickly can lead to regret — whether that’s selling a home before they’re emotionally ready or ending up in a place that doesn’t truly fit their needs,” Cover told GOBankingRates. “The best approach is to slow down, reflect on lifestyle goals and create a thoughtful plan.”
Check Out: The Cost of Homes in Florida’s 6 Best Counties for Snowbird Retirees
Underestimating the True Costs of Homeownership
Many retirees focus only on the mortgage or rent and “overlook ongoing expenses like property taxes, HOA fees, maintenance or unexpected repairs,” said Cover, who also serves as 2025 president-elect of the Women’s Council of Realtors for Middlesex County, New Jersey.
“On a fixed income, these hidden costs can become a real burden,” she said. “That’s why I encourage retirees to evaluate the total cost of ownership before making a move and consider low-maintenance options that align with both their budget and their stage of life.”
[embedded content]
Choosing the Wrong Location for Their Lifestyle
Many retirees buy homes near family or invest in vacation homes without considering how this can impact their everyday life — including access to healthcare, social activities and a sense of community.
To help retirees avoid choosing the wrong location, Cover recommended working with a Seniors Real Estate Specialist or Certified Senior Housing Professional.
“An experienced agent doesn’t just know the housing market — they understand how local amenities, medical services, transportation and community offerings tie into lifestyle,” she said.
Working With a General Real Estate Agent Instead of a Specialist
Speaking of specialists, one of the top real estate mistakes retirees make is hiring a Realtor who doesn’t focus exclusively on seniors.
“A general agent might focus only on the transaction, while a Seniors Real Estate Specialist brings patience, resources and tailored solutions,” Cover said. “I approach every client with both strategy and heart, making sure the move supports their financial goals and their quality of life.”
Overlooking Future Needs When Choosing a Home
Another common mistake is looking only at homes that meet your current needs rather than what you might need in the future.
“I encourage retirees to think a step ahead, whether that means choosing a single-story home, a community with supportive services, or a location that allows them to age gracefully and comfortably,” Cover said. “Planning for the future creates peace of mind and prevents another stressful move down the line.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Real Estate Expert: 5 Common Real Estate Mistakes Retirees Make