With a long-distance move, it may make more sense to rent initially rather than to buy, said Erik Carter, a certified financial planner and senior resident planner at Financial Finesse. Renting for a year gives you time to check out different neighborhoods and decide whether a new city or town is a good fit.
Many people believe that once they sell a home, they must buy a new one right away to avoid owing capital gains taxes on the profit from their sale, Carter said. However, as long as you lived in your home for two of the last five years, $250,000 in profit from the sale of that property is exempt from capital gains taxes for single sellers, and $500,000 is exempt if you are married, he explained.
States with no income taxes, such as Nevada and Florida, have long been a draw for retirees. But Carter said it's important to consider the bigger picture from a tax perspective, because states with no income tax may have relatively high property taxes.
"I tend to find people's tax bracket is lower in retirement than they think it will be," he said. "So income tax may not be as big of a factor as property tax."
Read MoreSet goals before retirement
For many people, housing is their single biggest expense. But if you are nearing retirement, it's a good idea to take a look at all of your expenses and, of course, your assets to determine whether you need to adjust your spending habits or perhaps your expectations for retirement, said Douglas Kobak, a CFP and principal at Main Line Group Wealth Management.