How to Sell Your Home After 60 - The RULES Have CHANGED

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How to Sell Your Home After 60 - The RULES Have CHANGED

How to Sell Your Home After 60 - The RULES Have CHANGED

Thinking about selling your home after 60? Whether you're downsizing, retiring, or relocating, the real estate market has changed—and so have the rules. In this guide, we'll walk you through everything you need to know in 2025 to sell smart, keep more equity, and avoid costly mistakes.

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Table of Contents

Capital Gains Tax Rules in 2025

Outdated Assumptions Are Costing Sellers Thousands

One of the most common misconceptions among sellers over 60 is that they can avoid taxes by rolling equity into their next home. That rule is long gone.

Here’s what you need to know now:

  • If you're single, you can exclude $250,000 in profit.
  • If you're married, you can exclude $500,000 in profit.
  • You must have lived in the home 2 of the last 5 years.

Example:

  • Purchase Price (30 years ago):$50,000
  • Current Sale Price:$1,000,000
  • Total Gain:$950,000
  • Tax-Free Amount (Married):$500,000
  • Taxable Gain:$450,000

Don’t Panic—There Are Legal Ways to Reduce Your Tax Bill

You can increase your cost basis and reduce the taxable portion by including:

  • Major home improvements(roof, kitchen, HVAC, etc.)
  • Closing costs(escrow, commissions, title fees)

If you've invested $400,000 in improvements over the years and your selling costs add another $100,000, you might eliminate your taxable gain entirely.

✅ Pro Tip: Keep all receipts. Work with a CPA before listing, not once you’re in escrow.

👉 Reach out for a custom seller net sheet.

What Buyers Expect Today

It’s Not the Same Market You Bought In

Today’s buyers are scrolling Zillow and judging listings in seconds. They expect:

  • Clean, neutral paint
  • Modern flooring
  • Decluttered, staged spaces
  • Functional kitchens and bathrooms
  • Strong curb appeal

Millennials and Gen Z buyers don’t care how long you’ve lived in the home. They care what it looks like online.

But here’s the nuance:

  • You don’t need to renovate.
  • You do need to refresh.

A good listing agent can guide you on what to fix and what buyers will overlook.

What Updates Actually Matter

The 3 That Pay Off:

  1. Paint
    • Highest ROI (close to 100%)
    • Stick with light, neutral tones
  2. Flooring
    • Replace stained, worn, or outdated carpet
    • Use vinyl luxury plank or light-colored carpet
  3. Curb Appeal
    • Power wash driveway/front door
    • Fresh mulch, trimmed hedges
    • Paint the front door

The 2 That Don't:

  1. Full Kitchen Remodels – Low ROI (maybe 50%)
  2. Bathroom Overhauls – Just keep them clean and functional

Buyers want clean and livable—not perfect. Focus on simple, high-impact updates that broaden appeal without draining your wallet.

How to Sell and Buy at the Same Time

Avoid the Chaos of Double Moves

If you're planning to downsize, retire, or relocate, here's how to stay sane:

1. Get Preapproved First

  • Even if buying with cash, know your real budget
  • Account for taxes and understand how lenders view retirement income

2. Use a Rent-Back Agreement

  • Stay in your home 30-60 days after closing
  • Avoid scrambling to move twice

3. Sell Contingent on Finding a Replacement

  • Accept an offer contingent on securing your next home
  • Common strategy for sellers over 60

4. Ask for a Longer Escrow

  • Standard is 30 days—ask for 45, 60, or even 90 days

5. Know Where You're Going

  • Visit areas in person—don’t just rely on Zillow
  • Research costs, communities, and taxes ahead of time

The #1 Mistake Sellers Over 60 Make

No Plan = Lost Money and Canceled Deals

Most over-60 sellers:

  • Don’t know how much they’ll net
  • Don’t know what updates are worth it
  • Don’t know where they’re moving
  • Have no strategy

That leads to:

  • Last-minute decisions
  • Weak negotiations
  • Delays or canceled escrows

If you’ve owned your home for decades, you likely have serious equity. Treat this like the financial transaction it is, not just an emotional decision.

You may have raised your kids or grandkids here, but now it’s time to make smart, strategic decisions that protect your future.

Your Next Steps

  1. Talk to a real estate agent who gets this.
  2. Request a seller net sheet.
  3. Connect with a CPA or tax advisor.
  4. Start scouting future neighborhoods now.

Let’s Do This Right

If you’re thinking about selling in the next 6 to 12 months, let’s talk. I’ll walk you through:

  • Capital gains taxes
  • Smart updates
  • Realistic pricing
  • Timing your sale and purchase

📍 Click here to contact me directly

If I can help you, I will. If not, I’ll refer you to a trusted pro in your area. Either way, you’ll walk away with clarity and confidence.


More Resources:

About the Author

Jeb Smith is a top 1% REALTOR® with REAL Broker, serving Huntington Beach and all of Orange County, California. With over 22 years of experience and more than $400M in closed sales, Jeb helps buyers and sellers make confident, well-informed real estate decisions. He’s the host of The Educated HomeBuyer podcast and YouTube channel with 100K+ subscribers, where he shares expert insights on housing, mortgages, and building wealth through real estate.

Jeb has been featured in CNET , Money , and Fortune for his expertise on the housing market and mortgage trends. Learn more at jebsmith.net or connect on YouTube and Instagram.

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