Downsizing has long been a popular retirement strategy. But older Americans are increasingly opting to age in place.
In late 2024, AARP found that 75% of Americans ages 50 and older want to stay in their current homes as they age. However, health changes, physical and cognitive decline, or the day-to-day challenges of living alone can lead many seniors to seek other living arrangements. That puts homeowners who initially choose to age in place at risk of losing a significant chunk of their home’s value when they finally decide to sell.
Data from the Center for Retirement Research at Boston College shows that older sellers get substantially lower returns on their homes. An 80-year-old seller, for example, realizes about 0.5% less per year than a 45-year-old seller, which translates into a 5% lower sales price for a home with the average U.S. holding period of 11 years.
Apply that to the National Association of Realtors’ median existing-home sale price of $417,700, and senior homeowners could be looking at almost $20,900 less for a typical home sold today.
But what’s actually driving this trend? Is it that buyers are biased against older homeowners? Or do older homeowners’ properties tend to hold less appeal?
[Read: Best Mortgage Lenders]
Deferred Maintenance and the Overwhelming Toll of Selling Later in Life
It’s often the case that people who opt to age in place have been in their homes for decades before eventually deciding to sell. And often, homes in this category fall victim to maintenance and presentation issues.
Jessica Julian is a sales associate at Douglas Elliman Real Estate in Palm Beach, Florida, and as she explains, “Many longtime owners have lived in their homes for decades. And while the property may have strong bones or emotional value, buyers today are highly focused on move-in-ready condition, updated finishes and overall presentation.”
In Julian’s experience, older sellers don’t always realize how far small improvements and a bit more effort can go.
“Staging, landscaping, paint, lighting or cosmetic updates can impact perceived value,” she says. “Even well-maintained homes can feel dated to younger buyers if they have not been refreshed over time.”
Bruce Ailion, Realtor-attorney at Re/Max Town & Country in Alpharetta, Georgia, says it’s not that older homeowners are lazy. Rather, it’s that the work involved is overwhelming.
“Selling a home for top dollar isn’t easy,” he says. “It’s hard work. It’s decluttering. For a 45-year-old who has been in a house for 10 years, it’s not too bad. It’s not the same story for an 82-year-old with 47 years of stuff to go through.”
Ailion also says that some older homeowners are budget-constrained despite having a lot of home equity.
“The 80-year-old seller has the equity to make property improvements, but often not the liquidity or energy to take on a major remodel or renovation,” he explains.
Julian, meanwhile, acknowledges that there’s also an emotional component to making improvements.
“Seniors are often attached to their homes and may resist making changes before listing,” she says. Buyers then tend to compare those homes directly against newer or recently renovated inventory.
How Urgent Timelines Trim Senior Homeowners’ Negotiating Leverage
While the difference in price for older sellers would seem to indicate potential ageism in the real estate industry, Julian doesn’t necessarily think that’s the case.
“If a home feels dated, deferred maintenance is noticeable, or the seller appears eager to move quickly, buyers may see that as an opportunity to negotiate more aggressively,” she says.
As Julian explains, older homeowners can find themselves under pressure to sell quickly due to rising taxes and insurance costs, health concerns, lifestyle changes, or the need to transition into assisted living.
“When timing becomes urgent, it can impact negotiating leverage, particularly if the property also needs updates or repairs,” she says.
Jason Madiedo, CEO of Panorama Mortgage Group in Las Vegas, agrees that ageism is not at play.
“The mortgage industry is highly regulated to prevent and avoid trends like this that could be viewed as predatory,” he says. Plus, he says, “In many cases, the buyer won’t know the seller’s demographics.”
Still, Madiedo says, “Older homeowners often live in well-established neighborhoods with properties that age along with them, which could be a driver of the trend.”
[SEE: Best Home Equity Loans]
Why Senior Sellers Are More Willing to Settle For Less
Senior homeowners may also face an “age penalty” because they’re more willing to settle for modestly lower prices than their younger counterparts.
“The 80-year-old homeowner likely has no loan and plenty of equity,” says Ailion. “If they sell a $400,000 home and net $20,000 less than a 45-year-old with a $290,000 loan, it feels less painful, and the capital needs of a 45-year-old are usually different from those of an 80-year-old. That’s a significant component.”
[READ: Best HELOC Lenders]
Strategies to Narrow the Senior Home Sale Price Gap
While it may be easy to understand why senior homeowners tend to sell for less, that doesn’t mean they shouldn’t try to get more for their properties. To that end, Julian says the right guidance can go a long way.
“The good news is that this gap can often be narrowed significantly with the right preparation strategy,” she says. “Sometimes, relatively modest improvements in presentation can make a substantial difference in both buyer interest and final sale price.”
That’s why Julian recommends working with a real estate professional who knows what improvements to focus on.
Madiedo, meanwhile, says that senior homeowners who want top dollar for their homes need to be willing to do their research.
“Older homeowners should focus on a fair market price and information they can source,” he insists. On top of that, his recommendation is to “pull in a trusted family member to simply give perspective, and for sure work with a great agent to get the proper guidance.”
More from U.S. News
Is a 15- or 30-Year Mortgage Right for You?
Kevin Warsh Set to Lead the Fed: Why a Trump-Backed Chair Doesn’t Guarantee Lower Mortgage Rates
What a Recession Would Mean for Mortgage Rates in 2026
Is Your Home Equity Safe? How to Avoid the ‘Age Penalty’ When Selling Your Home originally appeared on usnews.com