DEAR ABBY: This letter is to offer advice rather than to seek it. It's directed toward people who are planning to relocate after they retire. I would suggest to them that they live in the area in which they are planning to move for at least one year before making a final decision, and to make sure they are paying a fair market price before they buy.
My wife and I bought a home in Florida, thinking it would be the ideal place to retire. There is considerable development going on in the area. While it is a nice community, w have found it is not really what we wanted. We would like to sell our home and move.
Abby, the home we purchased has been on the market with a nationally known real estate company for two years. During that period we have had only one offer and it was for a price well below that for which it listed. (The house is listed at $20,000 less than what we paid for it three years ago.) If it does sell, after the commissions are paid, we will realize a loss of more than $25,000.
I would urge those contemplating retirement to avoid buying until they are absolutely sure. I guarantee it will save them a lot of time, money, frustration and disappointment. -- SADDER AND WISER IN FLORIDA
DEAR SADDER AND WISER: Thanks for sharing your expensive lesson with my readers, and for the reminder that a prudent investor carefully sizes up the market before investing in anything.