House sellers begin getting decrease costs at 70, analysis exhibits

For householders who promote their home later in life, that timing might include a price, new analysis suggests.

As soon as sellers attain about age 70, they begin getting decrease sale costs for his or her homes in contrast with youthful householders, in accordance to a January analysis transient revealed by the Heart for Retirement Analysis at Boston School.

In comparison with sellers of their 40s and 50s, an 80-year-old homeowner will get a 5% cheaper price for a home held for about 11 years, in line with the research. On a typical dwelling worth of $405,400 — the nationwide median sale worth in December, in line with the Nationwide Affiliation of Realtors — this quantities to a lack of $20,270. This hole continues rising as householders age.

It is a state of affairs that extra dwelling sellers could also be poised to come across.

As of 2024, there have been 65 million child boomers — these born 1946 via 1964 and of their 60s and 70s now — accounting for 20% of the U.S. inhabitants and 36% of complete home-owner households, in line with Freddie Mac.

These older householders are largely staying put, which no less than partly contributes to the dearth of housing availability and elevated costs within the present market — though these elements are beginning to ease. About 68% of child boomer householders say they’ll possible age in place, in line with a 2024 report from Freddie Mac.

A part of the disparity in returns is tied to dwelling upkeep: Houses bought by older house owners usually tend to present indicators of deferred repairs or fewer upgrades, in line with the analysis. That may weigh on sale costs even after accounting for location and market situations.

Moreover, the analysis signifies that older householders usually tend to promote via personal, off-market listings — offers that by no means seem on the general public A number of Itemizing Service, or MLS, the place most consumers search by way of on-line actual property websites. These gross sales restrict competitors and usually tend to contain traders, which is related to decrease sale costs, in line with the CRR briefing.

The research linked housing transactions in CoreLogic’s database, which incorporates particulars like sale date, worth and deed sort, to voter registration data — that are restricted to U.S. residents and first residences — to determine the sellers’ ages. Researchers additionally performed a repeat-sale evaluation to match gross sales of the identical dwelling over time, utilizing information spanning from 1998 to 2022.

For a lot of householders, their home will probably be one in all their largest belongings as they head into retirement. In 2022, median dwelling fairness for householders age 65 and over was $250,000, up 47% from $170,000 in 2019, in line with a 2023 report from the Joint Heart for Housing Research at Harvard College. That quantity represents roughly 50% of the median wealth amongst households for 65-year-olds or older.

As People keep more healthy and stay longer, extra are promoting their properties later in life, stated Jessica Lautz, deputy chief economist and vp of analysis for the Nationwide Affiliation of Realtors.

“We’re seeing that [sellers] are making transactions at later ages than they used to,” Lautz stated. 

Within the 70-to-78 age group, 38% of householders have lived of their home for 21 years or extra, in line with the NAR’s 2025 House Patrons and Sellers Generational Tendencies report. Within the 79-to-99 age group, that share is 44%.

Additionally in that latter age group are 15% who bought their home for lower than 90% of the itemizing worth — the most important share of any age group, in line with the report. On the identical time, nonetheless, they’re additionally the least possible age group to supply incentives to consumers — e.g., dwelling warranties, help with closing prices, and many others. —Lautz stated.

Consultants say that it is essential for retirees and near-retirees to pay attention to these pricing traits, particularly if they’re relying on their dwelling’s worth as a part of their retirement plan.

“From what we see working with older householders, decrease sale costs normally come from deferred upkeep and last-minute selections [that are] typically pushed by tight money circulation in retirement,” stated Joon Um, a licensed monetary planner with Safe Tax & Accounting in Beverly Hills, California.

“Small fixes get delayed, then consumers discover every part directly and worth it in,” Um stated.

Planning forward could make a giant distinction, he stated. Issues like “setting apart some money for repairs, decluttering over time, and tying the house sale right into a broader retirement and money plan might help keep away from promoting below stress,” Um stated.

It is also price grownup kids, neighbors or different members of the family maintaining a tally of the maintenance of an older liked one’s dwelling.

“To the extent that you’ve a relationship with an older particular person, shield their pursuits and ensure they’re taking good care of their home,” stated Philip Strahan, coauthor of the Heart for Retirement Analysis report.

As for the precise gross sales course of, be certain you totally perceive your choices for promoting and the way your selections can impression the worth you get.

“When older individuals work together with the [real estate] brokerage neighborhood, perhaps they need to seek the advice of with grownup kids, somebody they belief to assist them,” Strahan stated.

On the identical time, there could also be causes that the decrease gross sales worth is a trade-off the home-owner is keen to make. For instance, Strahan stated, some might not need others going out and in of their home, so a non-public sale is preferable, even when it means a cheaper price.

Or, maybe an costly upkeep challenge goes unfixed previous to the sale in trade for the discounted worth, stated Lautz, of the true property brokers’ group.

Both method, the secret is to have a plan in place so you possibly can maximize the worth of your house as a part of your retirement plan, consultants say.

It’s “a giant retirement asset, not only a place to stay,” Um stated. “Managing it proactively can shield each worth and money circulation.”