A hidden risk is showing up in the housing market, and it could affect millions of aging homeowners

and the investors watching those homes come to market. I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke. For decades, homeownership has been one of the most reliable ways Americans

build wealth. In fact, homeowners age 70 and older now hold about $13 trillion in housing wealth.

That's according to data cited by Redfin. Many retirees see that equity as a financial safety net.

The plan is simple. Stay in the home, build the equity,

sell later if cash is needed for retirement, health care, or downsizing. But new research suggests

that strategy may not have worked out as expected. A study from the Federal Reserve Bank of Philadelphia

found that older homeowners often sell their homes

for less than younger sellers, and the discount gets bigger with age.

According to research, an 80-year-old seller may receive about 5% less than a 45-year-old

seller, even when selling similar homes in similar markets.

So why would that be? Well, researchers found one

major reason is deferred maintenance. Older homeowners are often less likely to renovate,

update, or repair their properties before listing them. That means buyers may walk into homes with

aging roofs, outdated kitchens, worn flooring, old appliances or cosmetic issues that

haven't been addressed in decades. In a hot market, buyers might overlook that, but in today's

market, with mortgage rates still elevated and renovation costs high, borrowers are becoming

far more selective, and that creates opportunity, especially for

investors.

Homes owned by aging sellers may increasingly hit the market at discounts, particularly if their

heirs, their health care needs, or life events create urgency.

...