Anyone looking to sell their home might have a harsh reality check: It’s not the seller’s market it was after the pandemic.

The number of property listings continue to hit post-pandemic highs, and median prices are now dipping in many parts of the country. In fact, U.S. homes are sitting on the market even longer than they did before the COVID buying boom of 2020 and 2021. In August, the typical home spent 60 days on the market — more than any August since 2017, according to new Realtor.com data.

So what? Sellers have to accept that the eye-popping offers of the pandemic era are over. But that doesn’t mean there aren’t opportunities for homeowners who are strategic, realistic, and flexible.

Here are some options if you’re looking to move:

•  Embrace autumn. While there aren’t as many buyers in the fall as in spring and summer, your listing has a better chance of standing out in the off season. And buyers can be motivated to close before winter hits — especially with 30-year mortgage rates hitting a 10-month low of 6.5%.

•  Sweeten the deal. Yes, mortgage rates are lower than they’ve been all year. But they’re still twice what they were in 2021 — making buying a home a lot less affordable for many Americans. Offering prospective buyers’ an incentive, like covering closing costs or paying for home repairs, could get them over the hump.

•  Stay put. If you’re not getting the offer you want, can you stay in your current home until the market changes? Delistings surged 57% in the year through July, outpacing the overall growth in listings, according to the Realtor.com data. If that continues, and buyers have fewer and fewer choices, they might lose their newfound leverage.

•  Think locally: Don’t be discouraged by the national trends, which mask huge regional and city-by-city variations. The inventory of homes for sale has recovered a lot faster in the West and South than the Northeast and Midwest, for instance.

•  Remember everything is relative: It’s no longer a seller’s market, but it’s not a classic buyer’s market either. Just because asking for too much can backfire doesn’t mean you won’t make a solid profit on your investment. Nationally, the median list price in August was $430,000 – still 36% higher than in 2019, before the pandemic triggered the buying boom, according to the Realtor.com data.

Related Reading

Homebuyer Shortage Forces Many Sellers to Lower Prices, Walk Away as Slump Drags On (ABC News)

Should I Sell My House Now? (Redfin)

What’s a Buyer’s Market vs. a Seller’s Market? (Laughlin Tanner Group)

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM20250910SW

Retirement may be the last thing on your mind when you’re leaving a job.

But if you have a 401(k) or something similar with your employer, severing ties triggers an important decision about your future. You can either leave your money where it is, roll it over into another retirement account, or cash out your balance.

While it may be tempting to take the money and run — as one in three workers do, according to Vanguard data — that’s the least desirable option, if you can avoid it. Between taxes, penalties, and the growth potential lost, cashing out your 401(k) or 403(b) plan can seriously set your retirement savings back.

“If you need the money, that’s one thing. But if it’s just the power of suggestion, think hard before cashing out of a workplace retirement plan,” said Brian Walsh, a Certified Financial Planner® and SoFi’s Head of Advice & Planning.

Here’s more on your options — plus how to reduce the likelihood you’ll need cash from your 401(k).

The Downsides of Cashing Out

When you take a 401(k) or 403(b) cash-out, you’ll generally face a 10% early withdrawal penalty, unless you qualify for a hardship exception or are already at least 59½. Plus, the money will be considered ordinary taxable income — so you’ll not only pay taxes, but likely pay a higher tax rate than you would in retirement, assuming your income is lower by that point.

And then there’s the less immediate cost of pulling your money out of your investments. Time is one of the most important ingredients in a successful retirement plan, so when you delay investing, you reduce your potential for significant long-term growth. And the longer your returns can be reinvested, the more opportunity you have for compound growth.

Even if tapping a smaller account doesn’t seem like a big deal, cashing out can still compromise retirement security. Fortunately, there are other options.

Instead of Cashing Out

Keep your plan. You can usually keep your funds in your old 401(k) plan if the balance is over $7,000. You won’t be able to contribute further or receive a match from your old employer, but if you’re happy with the plan’s fees and investment options, this can be a worthwhile option. That said, you may want to consolidate your plans at some point. It may be easier to keep track of a single account — especially as retirement age nears, bringing with it complex rules about what you’re required to withdraw.

Roll your money over. A rollover into an IRA or a new employer’s 401(k) plan is another option that avoids taxes and penalties. If you’re moving to a new job with a 401(k) offering, rolling your balance over to their plan may be the easiest option, though an IRA could provide more investment choices and control. Most IRAs offer a wide range of low-cost investment options. (SoFi IRAs also offer a 1% match on rollovers.)

Direct rollovers are the most straightforward, but you can also do what’s known as an indirect rollover, where you take the cash — giving you the option to use some of it temporarily — but then redeposit the entire amount in a new plan in order to preserve its tax-deferred status. If you go the indirect route, you usually have 60 days to redeposit it or the normal cash-out penalties and taxes apply.

(Note: Taxes will be withheld even if you intend to roll it over, so you’ll have to replace the amount that was withheld and then settle up later when you file your tax return.)

Avoid Needing to Cash Out

Cash outs are one of the main forms of what’s known as “leakage” — when money in workplace retirement accounts is diverted elsewhere before it can be used for retirement. And cash-out rates for hourly workers are 10%-15% higher than salaried workers with similar annual incomes because their pay can be irregular, according to recent Vanguard research.

One way to stabilize income volatility is to build a financial cushion: a dedicated emergency fund that helps you avoid needing your retirement savings to cover costs.

Financial advisors recommend stashing away enough to cover three to six months’ worth of living expenses, but starting small is better than not starting at all. And some employers offer eligible workers an option to link their retirement plan to an emergency savings account, withdrawable without penalties.

Additional Tips

•  Consider your timing. There are many reasons for leaving a job, but if the timing is flexible, don’t forget that employer contributions to your 401(k) are free money. If your employer offers a match, can you max it out before you leave? Keep in mind many employers have a vesting schedule where their portion of the contribution isn’t yours right away.

•  Consider your balance. Check how much is in your account so that you understand your options. Balances of up to $1,000 may be distributed directly as a check (employers don’t need your consent to cash you out,) though you still have the 60 days to roll the money over into another account and preserve the tax benefits. For balances between $1,000 and $7,000, check with your former employer on any restrictions. Some may automatically roll the balance over into an IRA in your name if you don’t give alternative instructions.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

OTM2025091001