For many clients, selling a highly appreciated home or investment property is no longer just a real estate transaction. It has become a tax-planning decision that can have lasting implications for retirement income and wealth preservation.
A new MetLife survey found nearly all real estate professionals, 94%, believe clients should understand the tax implications of a property sale, including potential capital gains taxes. However, only 33% said clients are comfortable making complex financial or tax-planning decisions on their own, highlighting what the insurer describes as a growing planning gap as property values continue to climb.
The findings come as many retirees and pre-retirees increasingly look to real estate as a source of liquidity. According to the poll, 67% of brokers and agents said favorable market conditions are driving high-value sales, while 55% pointed to retirement funding as a key motivation. Another 53% cited succession planning or lifestyle changes as common reasons clients are selling appreciated properties.
“For many sellers, the financial consequences of a high-value property sale extend well beyond the closing table,” said Bejan Shirvani, head of Structured Settlements at MetLife. “As gains grow larger, sellers need to think earlier about taxes, income needs and how a sale fits into their broader financial goals.”
The survey also found 85% of brokers encourage clients to consult tax professionals before completing a sale, reflecting the growing need for specialized advice when large capital gains are involved.
While 92% of respondents said they are familiar with 1031 exchanges, interest is also growing in structured installment sales, which allow sellers to receive proceeds over time rather than a lump sum. Sixty-two percent of respondents said they are familiar with the strategy and 80% believe it could benefit at least some clients. Among all respondents, the most cited advantages were tax deferral (78%), payment flexibility (61%) and predictable income (59%)..
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Still, education remains a hurdle. One in five respondents said their biggest hesitation in discussing structured installment sales is not fully understanding how the strategy works, while only 27% said they have ever been approached by a structured settlement specialist.
As real estate transactions increasingly become wealth-planning events, financial advisors have an opportunity to work alongside brokers and tax professionals to help clients manage capital gains and preserve more of their proceeds.
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