Study Reveals Seniors Have More Home Equity, But Earn Less When It’s Time to Sell

Within the last 20 years, the housing market has been impacted by several major economic events—namely, the 2008 financial crisis, a historic bull market run, and the 2020 pandemic.

Despite economic ups and downs, however, home values have generally risen, though trends vary within specific regions and markets. Between 2020 and 2025, for example, home prices increased 55 percent on average. As you might remember, this home-buying boom was due in large part to low mortgage rates, rising demand, and supply shortages. Looking back just five more years to 2015, we’ve seen an average increase in value of a whopping 105.4 percent.¹

With values soaring over the past several decades, you might assume people who’ve owned their homes the longest have the most to gain. While this is partly true, one surprising fact has emerged: Older sellers may receive less return on the sale of their home.

What’s happening with home values

Homeowners stay in one home for about 12 years, on average—though the older the homeowner, the more likely they are to stay in place.² This generally makes sense, as younger people (millennials and Gen Zers) are still growing their families, moving for work, and saving up for their eventual “forever home.”

For comparison, 20 percent of baby boomers have lived in their homes for more than 30 years. Another 18 percent for at least 20 years.²

By this logic, it’d be safe to assume that older Americans (namely Baby Boomers) have likely accumulated the greatest value in their homes. They’re the most likely group of homeowners to have held onto their homes over the past few decades when prices soared.

So why is it that many seniors, with presumably the most value accrued in their properties, are receiving smaller profits when selling their homes?

What the research says

A recent study by the Center for Retirement Research at Boston College found a direct correlation between the returns on a home sale and age. Between ages 40 and 70, there’s relatively no change to home value based on the seller’s age. But starting at age 70, the returns on a home sale begin declining sharply.

So much so, that by age 80, a homeowner may lose upwards of 5 percent of the home’s value during a sale.³ Assuming an 80-year-old sold their home for the average home price of $405,300, that equates to a five-figure loss in value of $20,265.⁴ The greater the home’s value, the higher the loss may be.

Why is this happening?

The study attributes this drop in value to two primary factors.³

1. Older homeowners are less likely to maintain and update their homes. A lack of general upkeep, obvious repairs, or outdated furnishings can impact how much younger homebuyers are willing to pay upfront.
2. They’re more likely to sell off-market (say to a child or other relative) and to investors looking for a lucrative deal. Older sellers may feel less inclined to go through the efforts and stress of listing with an agent, feeling more comfortable with a less-pressured private sale—even if it means a lower offer.

The impact of selling for less

The immediate—and perhaps most obvious—impact of selling your home for less? Walking away with less profit in your pocket. But a lower home sale value can create a ripple effect, particularly for those in or near retirement.

As we mentioned, five percent less in home sale value can easily equate to a five-figure loss—that’s less to put towards your future living space, whether you’re relocating to a senior community or finding your perfect retirement home.

You may also have other plans to leverage your home sale before or in retirement. Perhaps you’d like to pay off lingering debts, renovate an in-law suite at your children’s house, or simply pad your savings to support future income needs.

Less profit on your home sale may impact your ability to meet your financial goals or needs in retirement. As a result, you could be compelled to:

• Put off certain milestones or goals: If you were going to use the funds to travel, renovate, or meet a different objective, a lower profit could mean delaying these goals.
• Work for longer: A lower home sale return may mean working for longer, perhaps part-time or in a consulting capacity.
• Take on more debt: Say you don’t earn enough to cover the full cost of your new home, you may need to take on additional debt.
• Pull from savings: Tapping into your retirement savings and investments earlier than intended could potentially impact portfolio longevity.

Tips for optimizing your home’s sale price

If you’re considering selling your home in or leading to retirement, there are things you can do to help increase the sale price (without putting too much more capital into your home). Here are four ways to help get more value out of your property before and during a home sale:

Tip #1: Understand what drives value

As the Boston College survey indicates, the primary reason for value loss during a home sale is because older homeowners are less likely to maintain their home.

You don’t have to spend a ton of money upgrading your home prior to listing it. In fact, some upgrades won’t yield enough ROI to justify the cost. But homeowners judge what they see. If they see a space that needs too many repairs or extensive renovations, it’s a compelling reason to offer less—or pass on the space altogether. If you’re unsure what changes could help increase the value of your space, you may be able to ask a real estate agent or home inspector what will make it more sellable.

You might also consider obtaining a seller’s appraisal (sometimes called a “pre-listing appraisal”). With the unbiased, data-based findings of a third-party appraisal, you can get a realistic sense of what your home is worth right now and what the biggest sticking points will likely be for buyers.

That said, pre-listing appraisals do cost money—expect anywhere from a couple hundred to a couple thousand dollars. They also tend to rely strictly on facts and data, including square footage, condition, recent similar listings, etc. They don’t necessarily reflect market sentiment and other less-tangible data points. For this reason, speaking to a real estate agent can still be helpful.

Tip #2: Do your research

Remember, older homeowners are also more likely to sell off-market or to investors, according to the study.

If you’re eager to sell quickly, or you’d prefer to keep real estate agents out of the transaction, you may be enticed by the allure of off-market deals. This is also a common space for real estate investors looking to get a good deal on a home they can turn into a rental or flip for a profit.

Before pursuing this type of home sale, do your research on what your home is actually worth and consider if a loss in profits is worth a potentially faster sale.

On the opposite end of the spectrum, pricing your home too high on the market can be detrimental as well. An overpriced home is more likely to spend extra time on the market, going “stale,” and losing value and appeal.

Tip #3: Increase curb appeal

Buyers need help imaging their future in your home. You can paint them a picture by increasing your home’s curb appeal. A recent survey found that 54 percent of homeowners considered the home’s curb appeal when purchasing. Around 57 percent said a “beautiful exterior” actually improved the home’s value by at least $20,000.⁵

If you’re able, consider spending some money upfront to update the landscaping out front—or at least remove trash, overgrown foliage, and other eye sores.

Staging your home is another way to increase appeal to homebuyers and potentially up the offer price. Staging a home can increase the value by up to 10 percent, according to 29 percent of surveyed real estate agents. Nearly half the agents surveyed also reported that a staged home sells faster—which can impact home value as well.⁶

Tip #4: Keep emotions out of the sale

Just like investing, leading with your emotions can create negative consequences. Emotional selling may make you more inclined to ignore data or make impulsive decisions that aren’t necessarily in your best interest long-term.

Even more than a portfolio, your home is a deeply personal part of you. Leaving emotions at the door during the home selling process may be next to impossible—but this is why you may benefit from working with professionals. A real estate agent and financial advisor can both play an important role in leading the process, while protecting your financial well-being in the process.

Preserve more of your home’s value

Many older homeowners, particularly those who’ve lived in their family home for years, have seen a sharp rise in home value over the past several decades. If you decide to sell in or leading to retirement, however, you may need to take a few extra steps to help ensure you’re getting the most value out of your home. Both a financial advisor and real estate agent can help you understand your options and find opportunities to make the most of your home sale.