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Retirement is a big shift and many New Yorkers find themselves deciding whether to downsize locally or use the equity in their home to move somewhere much more affordable—sometimes abroad. Homes in NYC, Long Island, Westchester and surrounding counties carry high values, which means selling can bring a large payoff. But staying in the same area, even in a “smaller” place, often still comes with high costs. Understanding all the costs—selling, buying, everyday living—is essential. In this article, we’ll break down the numbers, compare staying vs relocating, and explore creative (distressed, small‑home, land) solutions retirees sometimes use to stretch their money further.
Expense What It Covers Typical Percent or Amount*
Real estate agent commission All real estate agents involved in your sale 4%‑6%
Closing costs (for seller) Title fees, attorney fees, transfer taxes, etc. Typically ~1‑2% of sale price
Repairs / staging / prep Fixing issues, cosmetic improvements, cleaning, etc Varies greatly but expensive
Capital gains / taxes If home appreciated, exemption may apply Varies by personal situation
* These are rough averages—actual numbers depend heavily on location, condition, and value of home.
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Current Average Condo/Home Prices in NY
To see how far proceeds might go if you sell and try to buy another home locally, here are some median/average numbers:
- Westchester County Condos: Median ~$275,000; higher-end $600,000+ to $1M+
- NYC: Condo prices vary massively by borough, size, and amenities
- Long Island: Comparable to Westchester, some areas moderately higher depending on location
Category Estimated Monthly Cost
Housing (condo maintenance / property tax / insurance / utilities) $2,000‑$4,500+
Food / groceries $500‑$800
Health care & insurance $400‑$800+
Transportation $200‑$600+
Misc (maintenance, entertainment, etc.) $300‑$700+
Overall, a comfortable retirement in NY often requires $5,000‑$8,000+ per month.
Suppose you sell a condo in Westchester or Long Island, net enough proceeds, and try to buy another home locally. Here's how the math can work (example):
- Sell condo for $800,000 → net ~$720,000 after costs
- Smaller condo costs $400,000‑$600,000 + closing costs
- Still face high property taxes, maintenance, HOA fees
Result: downsizing locally doesn’t always reduce costs significantly.
Given how expensive NY is, many retirees choose different paths:
1. Relocate to lower‑cost U.S. areas or abroad
2. Use equity to buy distressed condos, small homes, or land elsewhere
3. Build or buy a small modular/tiny home (e.g. Home Depot or Amazon options)
4. Hybrid living: maintain a small NY base but spend large portions of the year abroad
- Stay in NY: Sell → net $700K → buy $500K condo → monthly costs $6K‑$8K+
- Move Abroad: Use $200K‑$300K for housing → lower taxes & healthcare → extra income for lifestyle
- Compare commission rates from multiple agents
- Focus on high ROI repairs
- Use tax advantages (capital gains exclusions)
- Shop for distressed/foreclosure units
- Explore modular/tiny homes on land
Selling your New York home can give you substantial equity, but staying in NY often means savings get eaten up by high costs. Many retirees consider moving abroad or using creative housing alternatives to stretch their retirement dollars.
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