A study from the Center for Retirement Research at Boston College reveals that homeowners who sell their houses after the age of 70 tend to receive lower prices compared to younger sellers.
Specifically, an 80-year-old seller can expect to receive about 5% less for a home held for approximately 11 years, translating to a potential loss of around $20,270 based on the national median home price of $405,400. This trend is particularly relevant as the population of baby boomers, who make up 20% of the U.S. population and 36% of homeowner households, continues to age.
Many older homeowners are choosing to remain in their homes, contributing to a tight housing market. The research highlights that older homes often show signs of deferred maintenance, which can negatively affect sale prices. Additionally, older sellers are more likely to use private, off-market listings that limit competition and typically yield lower prices.
With median home equity for homeowners aged 65 and older reaching $250,000, it is crucial for these individuals to understand the implications of selling later in life. Experts recommend proactive maintenance and planning to maximize home value as part of retirement strategies.
Engaging trusted family members in the selling process and considering all options can also help older homeowners achieve better sale outcomes