For many Americans, their home is their most valuable financial asset, forming the backbone of retirement security and often serving as a key source of wealth to pass on to the next generation. After years—sometimes decades—of mortgage payments, maintenance, and improvements, older homeowners expect to reap the rewards when they sell. In many cases, their financial stability later in life depends on maximizing the proceeds from that sale.
Older People Are Getting Lower Returns on Their Homes
However, new research from the Center for Retirement Research at Boston College highlights a concerning trend: the older a homeowner is when they sell, the worse the financial outcome tends to be. The study finds that by age 80, sellers lose an average of about $20,000 per transaction compared with middle-aged homeowners selling similar properties.
What Research has Uncovered
Researchers examined data from roughly 10 million repeat home sales and found that the decline in returns begins around age 70, worsening with each passing year.
An 80-year-old seller realizes about 0.5 percent per year less than a 45-year-old, which corresponds to a 5-percent-lower sales price for a home with the mean holding period (11 years). On the typical home price of $400,000, this reduction amounts to a loss of $20,000.
Two major factors appear to drive this pattern. Homes owned by older individuals are more likely to suffer from deferred maintenance, which lowers their market value. Additionally, older sellers are more often guided toward private, off-market transactions rather than listings on the Multiple Listing Service, reducing competition among buyers. These private deals can allow agents to steer properties to investors while collecting fees from both sides, whereas MLS listings typically attract multiple bidders and higher offers.
Still, these explanations do not tell the whole story. Real estate professionals and elder law attorneys point to a broader set of vulnerabilities that often accompany aging and leave older homeowners at a disadvantage. As people grow older, physical limitations and familiarity with their homes can make it difficult to recognize issues that are obvious to potential buyers. Minor cosmetic flaws—such as worn trim, faded paint, or neglected landscaping—may go unnoticed by longtime occupants but can significantly affect a buyer’s perception and offer price.
Vision problems and mobility challenges can compound the issue, making it harder for older homeowners to spot or address visible wear and tear. At the same time, external pressures frequently accelerate the selling process. Many older adults sell their homes to move into retirement communities, including continuing care retirement communities, which often require large upfront payments and encourage residents to sell quickly to fund them. In other cases, sudden health problems force families to sell under tight deadlines to cover assisted living or nursing home costs.
Despite these challenges, many older homeowners are reluctant to ask for help, wanting to remain in control of major life decisions. This combination of deferred maintenance, urgency, and independence can create ideal conditions for agents or investors to push quick, private sales that benefit themselves more than the seller.
Steps to Take to be Proactive
- To avoid these outcomes, experts say older homeowners can take several proactive steps. Before listing, small and affordable improvements—such as fresh paint, basic landscaping, or replacing worn flooring—can yield returns far greater than their cost. While major renovations may not be practical, modest cosmetic upgrades can significantly increase a home’s appeal and final sale price, especially compared with selling to investors who factor repair costs and profit margins into their offers.
- Choosing the right real estate agent is equally important. Sellers are advised to interview multiple agents, seek recommendations from trusted friends, and avoid relying solely on referrals from retirement communities. A good agent should demonstrate a commitment to protecting the seller’s interests, not just closing a fast deal.
- Bringing a trusted family member or friend into meetings can also provide valuable oversight. An extra set of eyes can help identify warning signs, ask critical questions, and ensure decisions are being made with full information. Adult children, in particular, can serve as effective advocates, helping safeguard assets that may eventually become part of an estate.
(Bringing a trusted family member or friend into meetings)
- Maximizing exposure through an MLS listing is another key safeguard. Public listings invite competition, which tends to push prices higher. By contrast, private or “pocket” listings limit the buyer pool and often result in lower offers, while making it easier for agents to favor investors paying below market value.
- Finally, experts caution against rushing the process. Offers promising a fast, hassle-free sale may be tempting during stressful times, but convenience often comes at a steep financial cost. Even taking a few additional weeks to prepare and properly market a home can result in substantially higher proceeds—funds that may be critical for medical care or long-term living expenses. While some agents may prioritize commissions over client outcomes, research suggests that greater transparency and informed decision-making can significantly reduce these losses, allowing older homeowners to protect the value of their most important asset.
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