Author: Jackie Smart
Reviewed By: Kristi Bickmann
You should sell your home before moving into assisted living if you need to free up cash to finance your long-term care. Assisted living costs an average of $54,000 per year, which many seniors pay for with personal funds, such as savings, retirement income and proceeds from selling a home. However, selling a home causes high levels of stress, and the upheaval may put too much strain on seniors who require assisted living. It may, therefore, be more beneficial to sell a home after making the move into a senior living community.
If you have the benefit of preplanning for your retirement, you can take the time to prepare and market your property to make it as appealing to buyers as possible. Selling a home before moving into senior living eliminates ongoing expenses, such as maintenance, tax, utility bills and mortgage payments. It also ensures you have the financing in place to cover initial expenses, such as security deposits and community fees.
However, everyone’s situation is different, and some seniors and their families may choose to wait until after they move into an assisted living community before selling their home.
Seniors struggling with daily tasks and unable to live alone or those requiring urgent care may not have the physical or mental strength to go through the selling process. In this case, it makes sense for family members to sell a home after their loved one has moved into an assisted living community.
When you remain in the home during the sale, it’s important to keep the property decluttered and you need to leave the house during viewings. Moving into assisted living prior to placing your home on the market takes away the anxiety and stress that come with property sales.
If you require money to make initial payments while selling your home, consider finding a community that allows deposit deferments or apply for short-term financing options, such as bridge loans or reverse mortgages.
