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What to Do With Your Parent’s Home After Moving Them to Long-Term Care?

You have options

Having an elderly parent who is unable to navigate their home safely, is showing signs of dementia, falls often, or has other issues that put their safety in peril is a stressful situation. As there is an increased need for care, it’s time the family discusses moving them to assisted living or another appropriate residence. This is not an easy position to be in and it can be fraught with emotion.

Making the decision to move your parent to senior care is the first difficult step. If they own a home, decisions will now need to be made about what to do with it.

Legal implications

Because each case is different, it’s important to consulate with an attorney before making any decisions. A legal professional can help with the following questions:

  • Do I need the court’s permission to sell my parent’s home?
  • Can it be misinterpreted as undue influence?
  • Do I need power of attorney, conservatorship, or guardianship to sell the home on my parents behalf?

For example, if your mom or dad begins to show signs of dementia, it’s a good idea to get a power of attorney right away. That way when it comes time to decide what to do with the home–and your loved one is incapaciated–you can make the decisions for them.

One important thing to understand: If you’re depending on Medicaid to pay for a nursing home, the state will attempt to recoup their expenses from the estate, so the home must be protected. Before making any decisions, consult with your attorney.

Once you have the legal issues resolved you must decide: Should you keep the house or sell it? There are advantages to both options. Keeping the home may allow a family member to move in, while selling the home–particularly for cash–may help pay for your loved one’s expenses.

Keep the home

There are several good reasons to keep your parent’s home after moving them to a care facility. Turning it into a rental property or listing it on VRBO, Airbnb, or other homestay marketplaces may be an extra source of cash. Or there may be a family member who would like to move in. Here are some things to consider.

1. Convert to rental property

There are many things to think about when choosing to turn the home into a long-term rental.
  • Is there a market for rental properties in the area?
  • Is it cost-effective, meaning are the mortgage and taxes up to date? Can you cover all the expenses and insurance with the rent?
  • And most importantly, do you have the time to manage the property, find good tenants, or fix possible damage? Or would you hire a management company?

2. Entrust to family member

If a member of the family would like to move in, this is an excellent way to keep the home for generations to come. Make sure to discuss the following points.
  • Can the person moving in manage the financial aspects, such as any existing mortgage, taxes, and insurance?
  • Will ongoing maintenance be an issue? If the home is older and in need of repair, this must be addressed.
  • Is everyone in agreement? Be sure to discuss the arrangements with the family to confirm that everyone is OK with the plans.

2. Transform to a short-term rental

Similar to making your parent’s home a rental property, there are questions to be answered before considering turning it into a homestay like Airbnb or VRBO.
  • Are you prepared for the time commitment to manage the listing, taking care of the upkeep, and dealing with emergencies?
  • How will you handle pricing? Getting the price right to make a profit means constantly monitoring the market and competitors to make sure you are charging appropriately.
  • Are you ready to manage risk? Owning an Airbnb means you are exposed to increased risks such as theft, property damage, injuries, or renters who won’t leave.

Sell the home

For some families, it may make more sense to sell the home. There are many reasons to make this choice, such as no one in the family wants it, too much work needs to be done, or you need the money to pay for your parent’s care. In this case, here are some things to think about.

1. The family does not want to keep the home

Every family is different and there can be many reasons they would not want to take on their parent’s home.
  • Is it too far away from work, school, or other family members–possibly even in another state, making moving difficult?
  • Are there too many financial implications, such as liens, equity, or a past due mortgage? If it will be a financial burden, selling may be the best course of action.

2. The condition of the home

If the home is in poor condition, it may make more sense to sell. Consider these questions before deciding.
  • Have you done a home inspection to check the roof, electrical, plumbing, and structure to address any immediate problems or safety issues?
  • Have you considered selling the home as-is? This is a good option if there is too much work to be done to be practical.

3. Need money to pay for senior care

Senior care residences can be expensive. You may need to sell the home to help finance that care. Here are some things to think about.
  • What is the value of your parent’s home? If the home has a good market value and you sell for cash, it can help offset many of the costs of care.
  • How much time do you have? If you need immediate help with paying for care, selling quickly is necessary. Consider selling to an as-is buyer, who are usually quicker and more flexible on closing dates than traditional options.

Sell as-is for cash

When selling your parent’s home you have options, as well: Selling the traditional way or selling as-is for cash.

The sooner you sell the home the less financial strain and emotional toll you’ll experience– allowing you to focus on your parent’s long-term care. With a cash sale you may be able to sell more quickly than with a traditional sale. Another benefit of selling the home as-is for cash is that you’ll skip showings and open houses, have flexible closing dates, pay no sales commissions, and not have to do any costly repairs or updates.

After you’ve explored your options, if you decide to sell your parent’s home as-is consider Really. We can provide a free offer with just a brief phone call with you to understand the size and condition of your home. Then we pull available public information regarding your neighborhood and comparable properties to present your as-is offer.

Really will provide a fast offer, usually 1-2 business days, with zero obligation. Even better, when you sell as-is for cash, you avoid the expenses and hassles of:

  • Realtor commissions
  • Repairs and renovations
  • Staging
  • Inconvenient open houses
  • Buyer fallout
  • Cleanout

You also don’t have to worry about clearing out the entire home when selling with Really. Just pack what you want and we take care of the rest. No cleaning services, no donation trips.

We know taking care of elderly parents can be overwhelming. Let us help. Get in touch today for your no obligation offer. Call 1-833-4-REALLY, complete this form, or email us at info@really.homes.

Tips for moving your elderly parent into a care home.

  • If you have time, start to sort through important items now before making the final decision.
  • Set aside personal belongings that your parent will take with them to feel more at home in their new surroundings.
  • Keep important papers in one safe place, such as deeds, wills, medical records, birth certificates, passports, etc.
  • Consider hiring a mover who specializes in seniors. Check out The National Association of Senior Move Managers.
  • Keep in mind that this is an emotional time and it may take some time for your parent to adjust. Be patient.

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