Why Do Older Sellers Get Less Money for Their Homes than Younger Sellers?

Key Takeaways

• 80‑year‑old sellers earn ~0.5% less annual return than 45‑year‑olds
• Typical $400k home loses about $20k for older sellers
• Older homes receive fewer positive MLS descriptions and more “as‑is” listings
• Seniors more likely to sell off‑MLS, often to investors, lowering price
• Illinois transparency reforms cut private listings and narrowed the age‑gap

Pulse Analysis

Home equity is a cornerstone of retirement planning, yet the new Center for Retirement Research analysis reveals a hidden erosion for older sellers. By linking CoreLogic deed records with voter‑registration ages, researchers tracked ten million repeat sales and uncovered a consistent 0.5% annual shortfall for sellers in their 70s and beyond. On a typical $400,000 property, that shortfall amounts to a $20,000 loss—an amount that can meaningfully shrink a retiree’s net worth and affect downstream spending decisions.

The study isolates two primary drivers. First, properties owned by seniors are less likely to feature recent upgrades; MLS descriptions shift from “high positive” to “high negative” as sellers age, indicating deteriorating condition and reduced buyer appeal. Second, older homeowners increasingly bypass the Multiple Listing Service, opting for private sales that lack broad market exposure. These off‑MLS transactions often funnel homes to professional investors who can negotiate lower prices, further compressing returns. The combined effect of poorer maintenance and limited market visibility creates a compounding disadvantage for older sellers.

Policy interventions can mitigate the disparity. Illinois’s recent reforms mandating greater transparency for private listings have already curtailed off‑MLS activity and narrowed the age‑related price gap. Replicating such measures nationwide—through standardized disclosure requirements and incentives for MLS participation—could protect senior homeowners’ equity. Financial advisors should also counsel aging clients on proactive home maintenance and the benefits of MLS exposure to preserve retirement wealth.