Research shows home sellers start to underprice at age 70

For homeowners who sell their homes later in life, the timing may come at a cost, a new study suggests.

According to a study summary released in January by the Center for Retirement Research at Boston University, when sellers reach around age 70, their homes start to sell for less than younger homeowners.

The study found that 80-year-old homeowners pay 5% less for a home they own for about 11 years than sellers in their 40s or 50s. If the typical home price is $405,400 (the national median sales price in December, according to the National Association of Realtors), this equates to a loss of $20,270. This gap continues to widen as homeowners age.

This is a scenario that more home sellers are likely to encounter.

According to Freddie Mac, as of 2024, there will be 65 million baby boomers (those born between 1946 and 1964 who are now in their 60s and 70s), accounting for 20% of the U.S. population and 36% of all homeowner households.

While a large proportion of these older homeowners continue to live, contributing at least in part to the current housing shortage and high prices in the market, these factors are beginning to ease. According to Freddie Mac’s 2024 report, approximately 68% of baby boomer homeowners say they are likely to continue aging.

Part of the earnings disparity has to do with home maintenance. Research shows that homes sold by older owners are more likely to show signs of poor upkeep and fewer upgrades. Even taking into account location and market conditions, this could put pressure on selling prices.

Additionally, the study also shows that older homeowners are more likely to sell through private off-market listings. This transaction will never be listed on the public Multiple Listing Service (MLS), which most buyers search through online real estate sites. According to the CRR briefing, such sales limit competition and are likely to involve investors, leading to lower selling prices.

The study linked home transactions in CoreLogic’s database, which include details such as sale date, price and deed type, to voter registration records limited to U.S. citizens and primary residences to determine the age of the seller. The researchers also conducted a repeat sales analysis to compare sales of the same homes over time using data from 1998 to 2022.

For many homeowners, their home will be one of their greatest assets in retirement. The median home equity for homeowners 65 and older in 2022 was $250,000, an increase of 47% from $170,000 in 2019, according to a 2023 report from Harvard University’s Joint Housing Research Center. This amount is equivalent to about 50% of the median wealth of households aged 65 and over.

As Americans become healthier and live longer, more people are selling their homes later in life, said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors.

“We’re finding that (sellers) are doing business at an older age than they used to,” Lautz said.

According to NAR’s 2025 Home Buyer and Sellers Generational Trends Report, in the 70-78 age group, 38% of homeowners have lived in their home for 21 years or more. Among the age group 79 to 99, the percentage was 44%.

Additionally, 15% of people in the latter age group sold their homes for less than 90% of list price, the largest share of all age groups, the report said. But they’re also the age group least likely to offer buyers incentives like home warranties and closing cost assistance, Lautz said.

Experts say it’s important for retirees or those nearing retirement to be aware of these pricing trends, especially if they’re counting on the value of their home as part of their retirement planning.

“From what we see working with older homeowners, lower sales prices are usually due to deferred maintenance or last-minute decisions due to tight cash flow in retirement,” said Jun Eum, a certified financial planner at Secure Tax & Accounting in Beverly Hills, California.

“If small corrections are delayed, buyers will quickly notice everything and set their prices,” Um said.

Planning ahead can make a big difference, he said. “Setting aside cash for maintenance costs, taking time to declutter, and tying home sales to broader retirement planning can all help avoid a pressure sale,” Um said.

It’s also worth having adult children, neighbors, and other family members oversee the upkeep of your aging loved one’s home.

Philip Strahan, co-author of the Center for Retirement Research report, said: “As long as you have a relationship with an older person, you should try to protect their interests and ensure that their home is taken care of.”

When it comes to the actual sales process, be sure to fully understand your sales options and how your choices will affect the acquisition price.

“When seniors interact with the (real estate) brokerage community, they should probably talk to their adult children, people they trust to help them,” Strahan said.

At the same time, there may be reasons why homeowners want a lower sales price as a trade-off. For example, some people may not want other people coming in and out of their home, so private sales are preferable even if the price is lower, Strahan said.

Or, in exchange for a discounted price, expensive maintenance projects may not be fixed before the sale, said the real estate agent group’s Lautz.

Either way, experts say the key is to plan to maximize the value of your home as part of your retirement planning.

“It’s not just a place to live, it’s a great retirement asset,” Um said. “Proactive management protects both value and cash flow.”