The house, before anyone lists it
My mom is moving to assisted living. What do we do with her house?
By Ryan Riggins, Senior Transition Advisor for the family home, NC broker #361546, eXp Realty
Updated
Don’t list it yet. First find out who can legally sign for her, then run the funding math against the community’s fee sheet, then decide whether to sell, rent or keep the house, and bring in an elder law attorney and a CPA for the Medicaid and tax questions. A Senior Transition Advisor for the family home is the person who walks a family through that order before anyone lists it.
That’s what I do. The order matters more than the price, because a closed sale can’t be undone. Here’s how I’d walk it with my own family.
The steps, in order.
1. Find out who can legally sign.
If Mom can make her own decisions, she signs. If she can’t, somebody needs legal authority, and a power of attorney doesn’t always cover real estate. Check whose names are on the deed, pull the power of attorney, and have an attorney confirm it covers selling the house. If there’s no valid document, guardianship takes months, so find out now. More on this in selling a parent’s home with power of attorney.
2. Run the funding math against the fee sheet.
Ask the community for the full fee sheet in writing: the base monthly rate, the care level charges, the one-time community fee, and how much the rate went up last year. Put it next to Mom’s income, her savings, and what the house would really net after a sale. Then answer one question: how many months does the money last, with the house and without it? Our net proceeds calculator gets you the house number.
3. Decide sell, rent or keep.
Selling turns the house into cash that pays for care, and ends the upkeep. Renting brings monthly income but makes somebody a landlord, and the rent itself can matter for benefits. Keeping it empty costs taxes, insurance, utilities and upkeep every month, and many homeowner’s policies change once a house sits vacant, so call the insurer. Pick one on purpose, not because a deadline picked it for you. Here’s how sell, rent and keep compare side by side.
4. Take the Medicaid and tax questions to the pros.
If Medicaid could ever pay for Mom’s care, talk to an elder law attorney before the house is sold, rented or retitled. Talk to a CPA about the tax side of selling now versus later. In North Carolina, Legal Aid of North Carolina’s Senior Law Project is free for anyone 60 or older at 1-877-579-7562. If you’re mixing up the two programs, start with Medicare vs Medicaid for senior care.
5. If you sell, bring in one vetted local agent.
Now, and only now, call an agent. Pick one who has closed sales like this one, not the first name on a yard sign. If you want, I’ll refer one I’ve vetted and tell you why that one.
The common traps.
Listing before the funding math.
Once an agent is in, the clock is running and the question becomes what price, not whether to sell. Do the math first. You can always list next month. You can’t unsell.
Changing the deed to protect the house.
Putting the house in a child’s name can backfire on Medicaid and on taxes. Nobody signs a deed until an elder law attorney and a CPA have looked at it.
The cash-buyer lowball.
A deposit due next month is exactly what a “we buy houses” buyer is looking for. Compare the net numbers in writing first. Here’s how cash-buyer offers are built.
Guessing about the Medicaid look-back.
Medicaid looks back at transfers made in the 60 months before an application for long-term care. What that means for your mom depends on her situation and the rules in force when she applies. I won’t guess at it on a web page, and you shouldn’t either. That’s the attorney’s call.
Leaving the empty house unwatched.
A vacant, paid-off house is a target for more than burglars. Read how home title theft works and how to protect Mom’s house.
Who should I ask for help?
More than one person, because this is more than one job. Here’s where each fits.
- An elder law attorney for who can sign, powers of attorney, guardianship, deeds and Medicaid. Call before anything is signed or retitled.
- A CPA for the tax side of selling, renting or keeping, and of any money that moves.
- A placement advisor if you still need to choose the community. They’re usually paid by the community, so ask how.
- A Senior Transition Advisor for the family home for the house itself: the funding math against the fee sheet, who can sign, and sell, rent or keep, before anyone lists it. If you sell, one vetted local agent. What that role is, and isn’t.
I go deeper on timing and paying for care in selling the house to pay for assisted living.
Common questions
Questions families ask about Mom's house.
Should we sell Mom's house when she moves to assisted living?
Maybe, but not first. Find out who can legally sign for her, then run the funding math against the community's fee sheet to see how long her money lasts with and without a sale. Then compare selling, renting and keeping. Bring in an elder law attorney for Medicaid questions and a CPA for the tax side before anything is signed.
Can I sell my mom's house with a power of attorney?
Sometimes. It depends on what the document says. Some powers of attorney cover real estate and some don't, and a power of attorney ends when the person who signed it dies. Have an attorney read the document before you list the house or sign any contract.
Should we rent Mom's house instead of selling it?
It can work if the numbers hold up and someone is willing to be the landlord. Rent is income, and income can matter for care costs and benefits, so run it past the elder law attorney and the CPA. Count repairs, vacancy, insurance and management before you decide it pays.
Can we put Mom's house in my name to protect it from Medicaid?
Don't do it without an elder law attorney. Medicaid looks back at transfers made in the 60 months before an application for long-term care, and giving the house away can create a penalty period. A deed change can also change the tax bill when the house is sold later. This is exactly the question an attorney and a CPA are for.
Who should we ask for help with the house?
Four people, each with a different job. An elder law attorney for signing authority, Medicaid and deeds. A CPA for the tax side of selling. A placement advisor if you still need to choose the community. And a Senior Transition Advisor for the family home to run the funding math against the fee sheet and work out sell, rent or keep before anyone lists it, then refer one vetted local agent if you sell.
Should we take a cash offer to cover the deposit?
Not before you compare it. A fast cash sale solves a 30-day problem by giving up equity that has to pay for years of care. Ask the community about deposit and start-date flexibility, get a real net-proceeds number for a normal sale, and compare the two bottom lines in writing.
Not sure where to start? Start with me.
A free 20-minute call. Bring the fee sheet if you have it, and the power of attorney if there is one. It costs your family nothing.
Ryan Riggins · NC Real Estate License #361546 · eXp Realty. Not legal, tax or financial advice.