A recent survey from MetLife indicates that selling a highly appreciated home or investment property is increasingly a tax-planning event rather than a simple real estate transaction. The poll, conducted among real estate professionals, found that 94% of respondents believe clients should grasp the tax consequences of a sale, including potential capital gains taxes. However, only 33% said clients are comfortable handling complex financial or tax-planning decisions independently, highlighting what the insurer calls a growing planning gap as property values rise.
The survey, which gathered responses from brokers and agents across the U.S., shows that 67% cited favorable market conditions as a driver of high-value sales, while 55% pointed to retirement funding as a key motivation. Another 53% mentioned succession planning or lifestyle changes as common reasons clients sell appreciated properties. These findings come as many retirees and pre-retirees increasingly rely on real estate for liquidity.
“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 underscores that 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 this 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%).
Education remains a hurdle, however. 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. This suggests a significant opportunity for advisors to bridge the knowledge gap, especially as more clients look to real estate for retirement funding.
For financial advisors, the survey reinforces the importance of integrating tax planning into retirement discussions. As noted in a recent Voya survey, 95% of small business owners want advisors to help employees save above plan limits, indicating a broader trend toward holistic planning. Similarly, the MetLife data suggests that advisors who can navigate the intersection of real estate, taxes, and retirement income may better serve clients facing large capital gains.
The survey also aligns with findings from a Trust & Will survey, where 68% of clients would switch advisors for estate planning, highlighting the value of comprehensive advice. As property values continue to climb, advisors who proactively address tax implications of home sales could differentiate themselves in a competitive market.
In summary, the MetLife survey underscores a critical shift: high-value property sales are no longer just transactions but complex financial events requiring coordinated planning. With 94% of real estate professionals acknowledging the tax implications, advisors have a clear mandate to collaborate with tax experts and explore strategies like structured installment sales to help clients manage gains and preserve wealth for retirement.
