Home sellers start getting lower prices at 70, research shows
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New research suggests this timing may come at a cost for homeowners who sell their homes later in life.
When sellers reach about age 70, they begin to receive lower sales prices for their homes compared to younger homeowners. One Fireplace research summary Published by Boston College Center for Retirement Research.
An 80-year-old homeowner compared to sellers in their 40s and 50sR. According to the research, a 5 percent lower price is given for a house that has been held for approximately 11 years. With a typical home price of $405,400, which is the national average sales price in December, According to the National Association of Realtors — that means a loss of $20,270. This gap continues to grow as homeowners age.
This is a scenario more home sellers may be prepared to encounter.
By 2024, there were 65 million baby boomers (those born from 1946 to 1964 and those currently in their 60s and 70s); They comprised 20% of the U.S. population and 36% of total homeowner households. According to Freddie Mac.
These older homeowners are largely staying put, which is at least partly contributing to the current market’s lack of housing availability and high prices—but these factors are starting to subside. About 68 percent of Baby Boomer homeowners say they are likely to age in place. 2024 report from Freddie Mac.
Why might legacy sellers see lower returns?
Some of the disparity in returns is linked to home maintenance: Homes sold by older owners are more likely to show signs of deferred maintenance or fewer improvements, the study found. This can put pressure on sales prices even after location and market conditions are taken into account.
Additionally, research shows that older homeowners are more likely to sell through private, off-market listings; these are deals that never appear on the public Multiple Listing Service, or MLS, where most buyers search through online real estate sites. These sales limit competition and are more likely to involve investors, which is associated with 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 title type, to voter registration records, which are limited to U.S. citizens and primary residences, to determine sellers’ ages. The researchers also conducted a repeat sales analysis using data from 1998 to 2022 to compare sales of the same home over time.
Average home equity for people over 65 is $250,000
For many homeowners, their home will be one of their greatest assets as they step into a new life. pension. In 2022, median home equity for homeowners age 65 and older was $250,000; that figure was up 47% from $170,000 in 2019. 2023 report From the Joint Center for Housing Studies at Harvard University. This amount represents roughly 50% of the average wealth in households aged 65 and over.
As Americans stay healthier and live longer, more people will sell their homes later in life, said Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors.
“We see this [sellers] “They are transacting at later ages than they used to,” Lautz said.
According to NAR, 38 percent of homeowners in the 70-78 age group have lived in their homes for 21 years or more 2025 Home Buyers and Sellers Generational Trends report. This rate is 44% in the 79-99 age group.
Additionally, in this second age group, 15% of people sold their homes for less than 90% of the list price; This is the largest share among all age groups, according to the report. But they also provide buyers with home warranties, assistance with closing costs, etc. They are also the age group least likely to offer incentives such as: Lautz said.
Planning ahead is key to maximizing home value
Experts say it’s important for retirees and near-retirees to stay aware of these price trends, especially if they rely on the value of their home as part of their retirement plan.
“From what we’ve seen working with older homeowners, lower sales prices are often due to deferred maintenance and last-minute decisions [that are] Most of the time, it’s due to tight cash flow in retirement,” said Joon Um, a certified financial planner in Secure Tax and Accounting in Beverly Hills, Calif.
“Small corrections are delayed, then buyers notice and price everything at the same time,” Um said.
Planning ahead can make a big difference, he said. “Things like setting aside some cash for maintenance, decluttering over time, and tying the home sale to a broader retirement and cash plan can help avoid selling under pressure,” Um said.
Small corrections are delayed, then buyers notice and price everything at once.
Joon Um
Certified financial planner with Secure Tax and Accounting
It is also important for adult children, neighbors, or other family members to keep an eye on the maintenance of a loved one’s home.
“As long as you’re in a relationship with an older person, protect their interests and make sure they look after their home,” said Philip Strahan, co-author of the Center for Retirement Research report.
When it comes to the actual selling process, make sure you fully understand your selling options and how your choices may affect the price you receive.
“When older people interact [real estate] The mediation community, maybe they should consult with adult children with someone they trust to help them,” Strahan said.
There may also be reasons why a lower sales price is a compromise 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 maybe an expensive maintenance project wasn’t resolved before selling for a discounted price, said Lautz of the real estate group.
In either case, experts say, the important thing is to have a plan in place that allows you to maximize the value of your home as part of your retirement plan.
Um said it’s “not just a place to live, but a great retirement asset.” “Proactively managing this can preserve both value and cash flow.”
