Why Older Homeowners Often Get Less When They Sell ... and why this should concern all of us
- Rich Arzaga
- Feb 10
- 4 min read
By Rich Arzaga, CFP®, CCIM, The Real Estate Whisperer®
I recently read new research from the Federal Reserve Bank of Philadelphia titled Aging and Housing Returns, November 2025, which confirmed something I’ve long believed—but still found troubling to see backed by data.
The study shows that older homeowners often earn meaningfully less when they sell their homes than younger sellers selling comparable properties in similar markets. The difference isn’t small, and it isn’t rare. While headlines often point to sellers needing to move quickly or homes being outdated or in disrepair, those explanations only tell part of the story.
From where I sit—as a financial planner who specializes in real estate and regularly works with both owner-occupied homes and income properties—this outcome makes unfortunate sense.
In theory, selling a home should be apples to apples
If two homeowners sell similar homes in the same neighborhood under similar market conditions, the results should be broadly comparable. Assuming open market exposure, fair representation, and reasonable seller behavior, age shouldn’t matter.
But the reality is that those assumptions don’t always hold when the seller is elderly.
In the Philly Fed study, “elderly” refers to sellers aged 76 or older. Because this research is about averages, not absolutes, this group faces a different set of challenges when it comes time to sell.
“In theory, selling the same home in the same neighborhood should produce similar results. In practice, age often changes the outcome.”
Where things begin to break down
First, negotiation matters—a lot.
Older sellers are often less able, or less inclined, to fully engage in complex negotiations. That includes negotiations not only with buyers but also with their own real estate agents. When sellers don’t push back on pricing recommendations, marketing strategy, or deal structure, the result is often a faster sale—but not the best sale. To help close this gap, the National Association of REALTORS® created the Seniors Real Estate Specialist® (SRES®) designation to help agents better understand the financial, emotional, and practical nuances involved in working with older sellers. While the designation alone can’t eliminate risk, it reflects an important acknowledgment that selling a home later in life requires a different level of care, patience, and advocacy.
Second, preparation shapes the outcome.
Many older homeowners simply don’t have the appetite, energy, or resources to stage a home, make updates, or tackle deferred maintenance before listing. That’s understandable—and in many cases, entirely appropriate. For some sellers, prioritizing simplicity, certainty, or reduced stress over maximizing price is a rational and fitting choice, even if it results in a lower financial outcome. Still, deferred maintenance reduces buyer demand, weakens negotiating leverage, and often leads to price reductions or unfavorable concessions. The key isn’t that these tradeoffs are wrong, but that they are made consciously, with clarity about the financial implications.
Third, exposure matters.
One of the more troubling findings in the research is that older sellers are far more likely to sell off-market or through private transactions. When a home isn’t exposed to the open market, you lose competition. And without competition, you lose price discovery. Older sellers are also more vulnerable to exploitation. That doesn’t always look like outright fraud. More often, it shows up as “convenience” sales, investor purchases, or dual-agency situations that quietly favor speed and certainty over maximizing value.
“Convenience often feels harmless—but in real estate, convenience is expensive.”
When the kids step in
Adult children often take over parts of the process. While they usually have good intentions, they also have their own lives, careers, and obligations.
In some cases, it’s simply more convenient to close the sale than to pursue every advantage. And while heirs might benefit from a higher sale price over the long term, time pressure and logistics can prevail in the moment.
The result is rarely a single bad decision—it’s a series of small compromises that add up.
This isn’t about incapacity
It’s important to be clear about what this is—and what it isn’t.
This isn’t about incompetence, dementia, or lack of intelligence. It’s about how normal age-related changes, combined with stress, complexity, and unfamiliar financial decisions, can quietly affect outcomes.
Selling a home is one of the most significant financial transactions most people ever make. It requires evaluating trade-offs, understanding incentives, negotiating terms, and managing risk—all under time pressure. Even modest declines in negotiation appetite or decision stamina can have outsized financial consequences.
The real headline
For me, the real takeaway isn’t just that older homeowners often get less when they sell.
It’s that seniors face a real risk of inadvertently giving up the value of assets they spent a lifetime building—at a time when those assets matter most for retirement security, healthcare planning, and legacy goals.
That should concern families, advisors, and anyone who expects to age in place someday.
Because this isn’t someone else’s problem. It’s a preview.
“The greatest risk isn’t fraud—it’s quietly giving up lifetime wealth at the point it matters most.”
What families can do differently
There are no perfect solutions here, but there are better ones.
First, families should view the sale of an aging parent’s home as a financial-planning decision, not just a real estate transaction. That means slowing the process down when possible and recognizing that convenience often comes at a cost.
Second, build in independent perspectives. A second opinion on pricing, a separate advisor reviewing the economics, or simply someone whose role is to ask hard questions can materially improve outcomes. Transparency and accountability matter more than speed.
Third, prioritize open-market exposure. In most cases, competition results in better pricing and terms. Off-market and “easy” sales should be approached cautiously and deliberately, not by default.
Finally, normalize early involvement—before a sale becomes urgent. When decisions are rushed due to health, relocation, or life events, leverage shifts away from the seller. Planning ahead preserves options, dignity, and value.
None of this is about control or distrust. It’s about recognizing risk early and protecting outcomes—so the wealth built over decades isn’t quietly eroded in the final transaction.
Authored by Rich Arzaga, CFP®, CCIM, Founder, The Real Estate Whisperer® Financial Planning. Helping clients and advisors integrate real estate into holistic financial plans.
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