A reader is planning to move out of state for retirement and wants to know if it is better to rent a home first or buy one right away with a short-term loan. Our Realtors share their thoughts to help you make the best choice. They all agree on one important idea: get to know your new area well before buying a house.
The Big Question
Dear Realtors,
We are planning to retire in a different state and move into a single-family home. We have paid off our current mortgage and will use the profit from selling our house to pay for moving costs and buy a new home without a mortgage loan.
We see two options:
- Move and rent a home for a short time until we find the perfect house.
- Buy a house right away using a bridge loan (or another temporary loan) until our current home sells, and then use those funds to pay off the loan.
Which option—renting first or buying immediately with a short-term loan—is best for a smooth and low-cost retirement move?
Thank you,
Relocating Retirees (DuPage County, Illinois)
What Our Realtors Say
Kathleen Myers, Realtor with RE/MAX in Portland, Ore.
“Moving can be stressful and full of surprises. If you can avoid moving twice, I think using a bridge loan might be a great idea, especially since you are in a strong financial position. However, it is very important that you visit the new city as if you were a future resident. Look at open houses, check out neighborhoods, and find everyday places like grocery stores and clinics. The more you know about the area now, the more confident you will feel when you make your final decision.”
Rosa Galarza, Realtor with eXp Realty in Nashville.
“First, congratulations on paying off your mortgage! That is a big achievement. If I were advising a family member, I would suggest renting first. Real estate markets can change quickly, and a bridge loan can add stress and extra costs if your home sells later than expected or if the market shifts. Renting gives you flexibility and peace of mind. It lets you take your time and find the perfect home without rushing.”
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Barbara Lowery, Realtor with Fathom Realty in Indianapolis.
“I recommend renting first. Renting saves you money on interest and upfront costs compared to buying immediately with a short-term loan. It also gives you time to explore the new state and decide on your dream retirement home. Overall, renting is less risky and more cost-effective, giving you time to make a wise decision.”
Blake Blahut, Realtor with Realty ONE Group Inspiration in Florida.
“You are off to a great start by planning early. I suggest selling your current home and then moving into a short-term rental in your new community. Although moving twice might be a bit inconvenient, this approach helps you avoid rushing into a home purchase that you may not be happy with long-term. It might use some of the money from your sale, but it is worth it to ensure you find the perfect forever home.”
Final Thoughts
Each Realtor agrees that it is best to learn about your new area before buying a house. Renting first may give you more flexibility and lower costs, while buying immediately with a bridge loan might work if you already know the area very well. Remember, this decision is about your comfort and your future quality of life. Take your time, explore the neighborhood, and choose the path that makes you feel most at home for your retirement.