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Selling house to finance senior living is a popular option. Statistically, people over the age of 55 account for more than 50% of home sellers in the year dated 2019, according to the National Association of Realtors.
A normal person would be averse to the idea of selling their homes because home is where the heart is: all the memories of loved ones are around every corner. However, when push comes to shove, and you need to finance your loved ones living expenses, sometimes you might have no choice but to rip off that metaphorical Band-Aid. It doesn’t have to be a difficult task, though. If you are intending to sell your aged parents’ home in search of a senior living community or other such communities, here are some tips to help you in your decision-making.
When to Sell?
There are 2 instances to know when to sell your home: before or after your loved one moves to senior living. If selling the home is the main option available for your family to pay for care, then the house should be sold before moving to senior living. If the situation is urgent, like your parents are not able to care for themselves and need constant supervision, then they should move to senior living after selling the house. Considering financial matters, you might consider applying for a bridge loan. A bridge loan is one that someone typically uses in the middle stages of buying a home and moving out. To apply for this loan, the aged adult should have 20% equity in their home or more. Admittedly, bridge loans have higher interest rates and might entice due to their convenience. You should consult a banker or financial advisor that you trust to see if a bridge loan is a good fit for your loved one.
Taxes
The proceeds after you sell your home are free of tax. Exclude up to $250,000 for single residences or if your parents file jointly, up to $500,000 can be excluded. They must own the home and must have lived in the home for two of the last five years.
Prepare the Following Checklist:
- Set the date
- Source for a real estate agent you can trust
- Find out what the houses in your area are worth, and you can try to make an estimate. It’s not compulsory, but you can ask your real estate agent to appraise the home. The appraisal will let them know how much the house is worth, from a professional’s standpoint.
- Do spring cleaning and make sure to avoid making your house look like a fixer-upper
About TerraBella Lake Norman
Once you’ve sold your home, get ready for a blissful life at TerraBella Lake Norman. Our living community promises to care for your loved ones and support them mentally, emotionally, and physically. With community activities such as cooking and exercising in-store, your loved one will be spoilt for choice for activities to occupy their minds and keep them active. To find out more about TerraBella Lake Norman, please do not hesitate to contact us or schedule a tour with us to walk the grounds.
