Momo Productions | Digital vision | Getty Images
For homeowners who sell their home later, this timing can come at a cost, new research shows.
Once sellers reach around age 70, they achieve lower sales prices for their homes compared to younger homeowners, a study finds January Research report published by the Center for Retirement Research at Boston College.
Compared to sellers in their 40s and 50s, an 80 year old homeownerR According to the study, if you keep a home for about 11 years, you will get a 5% lower price. For a typical home price of $405,400 — the national average sales price in December, according to the National Association of Realtors — that represents a loss of $20,270. This gap continues to grow as homeowners age.
More from the Financial Advisor Playbook:
Here’s a look at other stories affecting the financial advisor business.
It’s a scenario that more home sellers may face.
According to Freddie Mac, in 2024 there were 65 million baby boomers — those born between 1946 and 1964 and now in their 60s and 70s — making up 20% of the U.S. population and 36% of all homeowner households.
These older homeowners are largely staying put, contributing at least in part to the housing shortage and high prices in the current market — although those factors are starting to fade. According to a 2024 report from Freddie Mac, about 68% of baby boomer generation homeowners say they are likely to age in place.
Why older sellers may have lower returns
Part of the difference in returns is related to home maintenance: Homes sold by older owners are more likely to show signs of deferred maintenance or fewer upgrades, according to the study. This can also impact sales prices when location and market conditions are taken into account.
Additionally, research suggests that older homeowners are more likely to sell through private, off-market listings — listings that never appear on the public Multiple Listing Service (MLS), where most buyers search through online real estate sites. These sales limit competition and are more likely to bring in investors, which results in lower sales prices, according to the CRR briefing.
The study linked housing transactions in CoreLogic’s database, which includes details such as sale date, price and deed type, to voter registration records — limited to U.S. citizens and primary residences — to determine the ages of sellers. The researchers also conducted a repeat sales analysis to compare sales of the same home over time, using data from 1998 to 2022.
The average home equity for those over 65 is $250,000
For many homeowners, their home will be their largest asset heading into retirement. According to a 2023 report from Harvard University’s Joint Center for Housing Studies, the average home equity for homeowners age 65 and older was $250,000, a 47% increase from $170,000 in 2019. This amount represents about 50% of the average wealth of households of those 65 and older.
As Americans remain healthier and live longer, more Americans are selling their homes later in life, said Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors.
“We see that [sellers] “We are transacting at a later age than we used to,” Lautz said.
In the 70- to 78-year-old age group, 38% of homeowners have lived in their home for 21 years or longer, according to NAR’s 2025 Home Buyers and Sellers Generational Trends report. In the 79 to 99 age group, this proportion is 44%.
Even in this latter age group, there are 15% who sold their home for less than 90% of the list price – the largest share of any age group, according to the report. At the same time, they are also the age group least likely to offer incentives to buyers – e.g. B. Home warranties, assistance with closing costs, etc. – said Lautz.
Planning ahead is the key to maximizing property value
Experts say it’s important for retirees and retirees nearing retirement to be aware of these price trends, especially if they’re counting on the value of their home as part of their retirement planning.
“As we see when working with older homeowners, lower sales prices are typically due to deferred maintenance and last-minute decisions [that are] often driven by tight cash flow in retirement,” said Joon Um, certified financial planner at Secure Tax & Accounting in Beverly Hills, California.
“Small repairs get delayed, then buyers notice everything all at once and factor it in,” Um said.
Planning ahead can make a big difference, he said. Things like “setting aside some money for upkeep, decluttering over time, and tying the home sale to a broader retirement and cash plan can help avoid a pressured sale,” Um said.
Small corrections are delayed, then buyers notice everything at once and factor it in.
Joon Um
Certified Financial Planner with Secure Tax & Accounting
It’s also worth having adult children, neighbors or other family members keep an eye on the maintenance of an elderly loved one’s home.
“To the extent that you have a relationship with an older person, protect their interests and make sure they take care of their home,” said Philip Strahan, co-author of the Center for Retirement Research report.
As for the actual selling process, make sure you fully understand your selling options and how your decisions may affect the price achieved.
“When older people interact with that [real estate] “In the brokerage community, maybe they should consult with adult children, someone they trust to help them,” Strahan said.
At the same time, there may be reasons that the lower sales price is a compromise that the homeowner is willing to make. For example, Strahan said some may not want others coming in and out of their home, so a private sale may be preferable, even if it means a lower price.
Or perhaps an expensive maintenance project won’t be repaired before selling for the discounted price, said Lautz of the real estate brokerage group.
Either way, the key is to have a plan in place to maximize the value of your home as part of your retirement planning, experts say.
It’s “a big retirement plan, not just a place to live,” Um said. “Proactive management can protect both value and cash flow.”