Older Americans are leaving money on the table when they sell their homes, with losses widening sharply after age 70, according to new research from the Центр исследований пенсионного обеспечения при Бостонском колледже.
Using a newly built national dataset, researchers found that продавцы in their 70s and beyond consistently earn lower returns than younger homeowners.
The gap grows with age — translating into tens of thousands of dollars in lost value on a typical sale.
An 80-year-old seller earns about 0.5% less per year than a 45-year-old. Over an average 11-year holding period, that adds up to sales proceeds that are roughly 5% lower.
On a $400,000 home, the difference is about $20,000.
The decline begins around age 70 and accelerates thereafter, even after accounting for location, market timing, demographics and property characteristics, the отчет объяснил.
Most earlier studies relied on self-reported home values, which can be unreliable. This analysis instead links actual продажи дома from a CoreLogic database with voter registration records to determine a seller’s age.
The resulting dataset covers about 10 million repeat sales nationwide. While it captures roughly 40% of all transactions, researchers say the age distribution closely matches other national surveys and increases confidence in the results.
Maintenance matters
One reason older sellers get less is the condition of their homes.
Focusing on properties listed on the услуга множественного листинга (MLS), where descriptions are more detailed, researchers analyzed listings language for signs of renovation or neglect.
Homes sold by younger owners were far more likely to mention major upgrades, such as new roofs or remodeled kitchens. Listings from the oldest sellers were much more likely to include phrases like “as-is” or “fixer-upper.”
Poor upkeep explains about 10% of the age-related return gap. Homes in worse condition simply command lower prices, regardless of market conditions.
Private listings and investor sales
How a home is sold also plays a major role.
Older sellers are more likely to market homes off the MLS through частные объявления and are more likely to sell to инвесторы в недвижимость.
Both practices are associated with lower returns. Private listings limit exposure to buyers — while investor sales often involve faster deals at discounted prices, the report explained.
Data shows that sellers ages 76 and older are about 2.3% more likely to sell off-MLS and 2.7% more likely to sell to an investor than middle-aged sellers.
When these factors combine, returns can be about 1% lower per year. Listing publicly and selling to a non-investor cuts that penalty roughly in half.
Policy changes show promise
Evidence from Иллинойс suggests the gap is not inevitable.
После Данные о недвижимости Среднего Запада — which operates the state’s largest MLS — adopted rules to make private listings more transparent, off-MLS sales declined. The return penalty for older sellers dropped from about -0.8% per year to -0.4%, according to the study.
Researchers say the change reduced opportunities for agents to steer older clients into lower-return deals.
The findings highlight the risks facing aging homeowners who may be downsizing, funding retirement or paying for долгосрочный уход.
Better maintenance, broader marketing and clearer rules around listings could help older sellers keep more of their жилищное богатство — and policymakers may have a role in making that happen, the organizers of the study concluded.
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