Today I want to share with you 3 reasons why older homeowners lose thousands when selling their home and how you can prevent this from happening to you or your loved one.

Studies from the Center for Retirement Research at Boston College reveals a troubling pattern: Older home sellers receive increasingly worse returns as they age, with 80-year-olds losing roughly $20,000 on a typical sale compared with middle-aged sellers. Starting at age 70, people begin getting bad deals when they sell their homes. And each year after that, the deals get worse. 

There are a couple key reasons.  

First, older folks literally don't see things clearly.  As cataracts and eye sight deteriorate, older folks don't see the scuffed up trim work, stains in the carpet or scratches on the walls where younger home buyers quickly spot these issues.  By doing small cosmetic improvements prior to listing your home such as freshening up trim work, fresh coat of paint on the walls, replacing stained carpet and removing dirty rugs, you will better position yourself for a higher return.

Most retirees are going to depend on these proceeds from the sale of their long term home for future living and healthcare expenses.  But many times older folks think it would be easier if they just let an agent know they want to sell but not actually list the home and have the agent keep the listing as a "pocket listing" allowing the agent to bring only their buyers to the home.  This is the second reason older sellers are getting a lower return.  Unfortunately a pocket listing means sellers will not be in the Multiple Listing Service nor receive full blown marketing and full market exposure.  Full market exposure is the thing that gets a home owner the best price because competing buyers are then aware of the home driving the price to the highest market price.  Being a pocket listing will result in a lower selling price.

The third factor causing older sellers to net less is the rush to sell.  For instance if someone takes a fall and has to go to an assisted living facility, and they need the money from the sale of the home to pay for the care, then they are going to be rushing to sell.  They will not be preparing the home to sell so taking a ding there.  Then rushing to accept an offer so probably not getting full exposure to drive offers up to get the highest selling price.  Slow down, have a plan and get full exposure.

In summary, making small but high impact cosmetic improvements such as painting, carpet or even some landscape maintenance along with enlisting a full time real estate professional with your interests at heart and taking your time to be sure you have the best plan in place, will result in a better outcome and higher return.  

If you or a loved one is thinking of selling now or in the future, give us a call.  My team and I would be happy to guide you with things you should, as well as shouldn't, do to prepare for your sale.  Remember, my team and I are on stand by, 7 days a week, ready to help you take the smoother road to sold.