<\/p>\n
If you\u2019re planning to downsize and fund your golden years with the equity in your home, you might want to check the calendar. It turns out that when it comes to real estate, timing isn\u2019t just about the market \u2014 it\u2019s about your age.<\/p>\n
A recent study suggests that once a seller hits 70, the price they get for their home starts to drop. And it\u2019s not a small dip. By the time a seller reaches 80, they\u2019re often walking away with significantly less money than their younger neighbors for the exact same type of house.<\/p>\n
According to recent research<\/a> by the Center for Retirement Research at Boston College, home sellers aged 70 and older sell their homes for about 6.6% less than younger sellers. If you\u2019re 80 or older, that gap widens even further.<\/p>\n We aren\u2019t talking about a few dollars here. On a $400,000 home, a 6.6% hit means leaving $26,400 on the table.<\/p>\n Why is this happening? It isn\u2019t necessarily because buyers are out to get seniors. It\u2019s usually a combination of two things: the condition of the home and a desperate need to move.<\/p>\n I\u2019ve seen it many times. A couple moves into a house in their 40s, keeps everything pristine for two decades, but then starts to slow down. Maybe the roof is 25 years old or the HVAC system is whistling a tune it shouldn\u2019t be.<\/p>\n When you\u2019re 75, the idea of overseeing a $15,000 kitchen remodel or dealing with a messy roof replacement feels like a nightmare. So, you don\u2019t do it.<\/p>\n You list the house \u201cas-is.\u201d Buyers, being the skeptics they are, see those old systems and start slashing their offers. They aren\u2019t just subtracting the cost of the repairs; they\u2019re subtracting a hassle tax on top of it.<\/p>\n (Related: \u201cHow to Increase the Resale Value of Your Home\u201d<\/a>)<\/p>\n Another reason older sellers get less? They often have to move. Whether it\u2019s for health reasons or to be closer to family, a seller who needs to be in an assisted living facility by next month doesn\u2019t have the luxury of waiting for the perfect offer.<\/p>\n Buyers and their agents can smell that urgency. If a house has been on the market for 60 days and the seller is already living in another state, the lowball offers start flying.<\/p>\n If you\u2019re approaching those \u201cexpensive\u201d years, you don\u2019t have to just accept a lower price. Here\u2019s how to keep your equity in your pocket:<\/p>\n Selling a home is one of the biggest financial transactions you\u2019ll ever make. Don\u2019t let your age give the buyer an accidental discount.<\/p>\n<\/p><\/div>\nDeferred maintenance is a deal killer<\/h2>\n
The motivation trap<\/h2>\n
How to protect your equity<\/h2>\n
\n