Older home sellers receive lower returns than younger home sellers. Homes sold by older people have fewer major renovations but higher rates of poor upkeep. Older sellers are more likely to sell off-MLS through private listings and are more likely to sell to investors. These patterns lead to lower prices. The age gap in housing investment returns remains even when property and market conditions are held constant. The probability of selling off-MLS and the probability of selling to an investor both increase with seller age and rise sharply for sellers aged 76 and older. The findings suggest older sellers may face greater disadvantages from incentives that prioritize sales volume and agent fees.
"Older home sellers receive lower returns than younger home sellers. Homes sold by older people have fewer major renovations but higher rates of poor upkeep. Older sellers are also more likely to sell off-MLS (pocket listings) and to sell to investors, leading to lower prices. These patterns suggest that older sellers may be disproportionately disadvantaged by agents' incentive to maximize fees through generating high sales volume instead"
"In this paper, the age gap refers to the difference in average housing investment returns between older and middleaged home sellers, holding property and market conditions constant. Older sellers don't make as high a return as middle-aged sellers, and the two primary drivers of this discrepancy are property condition and private listings. The probability of selling off-MLS and the probability of selling to an investor both rise with seller age and jump sharply for sellers 76 and older."
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