What to Do With Mom’s House: 3 Options When She’s Moving to Care

When mom moves to assisted living, you have three main paths: selling (with options from as-is to renovating), renting for ongoing income, or keeping it in the family. Each choice impacts care costs, family dynamics, and long-term financial goals.

Key Takeaways:

• When your mother moves to assisted living or nursing care, you have three main options for her home: selling, renting, or keeping it in the family.

• Selling a house 'as-is' can be a good option if the property needs significant repairs or if you need to liquidate assets quickly for care costs.

• Working with experts like Sage Senior Support can help with the complex real estate decisions that come with moving a parent to care facilities.

• Even homes in poor condition can retain significant value depending on location and current market conditions.

• The decision should balance immediate financial needs for care with long-term family goals and emotional considerations.

When mom moves to assisted living or a nursing facility, her house often becomes one of the biggest decisions facing the family. What should you do with this valuable asset that may have been in your family for decades and now sits empty, potentially costing money in maintenance, taxes, and insurance?

As families go through this emotional transition, Sage Senior Support understands that real estate decisions are a critical part of ensuring mom's long-term care needs are met. Whether you need to free up assets to pay for care or are considering the property's future within your family, there are three main paths forward.

Here are your options for handling mom's house when she's moving to long-term care, with the benefits and challenges of each approach.

Option 1: Sell the House

For many families, selling mom's house is the most straightforward solution, especially when funds are needed to pay for care. Here are several approaches to consider when selling:

1. Selling As-Is Without Repairs

If the house needs significant work or you don't have the time and resources to manage renovations, selling as-is might be your best option. While you might receive less than market value, you avoid:

• Out-of-pocket repair costs

• The stress of managing contractors

• Extended timelines for completing work

• Continued carrying costs like taxes and insurance

Even homes in poor condition retain significant value, particularly in desirable locations. The house's worth depends heavily on local market conditions, so don't automatically assume a fixer-upper won't sell well. Before accepting a lowball offer, consult with a real estate agent who can provide an accurate valuation considering the current condition.

2. Making Strategic Cosmetic Improvements

Sometimes a little effort goes a long way in improving the sale price. Deep cleaning and minor cosmetic improvements can significantly increase the appeal of a home being sold as-is without major investment. Consider these low-cost enhancements:

• Professional deep cleaning of all surfaces

• Fresh paint in neutral colors

• Basic landscaping cleanup and yard maintenance

• Removing dated window treatments

• Replacing obviously broken fixtures

• Decluttering and removing personal items

These simple improvements can make the home more appealing to buyers without significant investment and may yield a better sales price than selling completely as-is.

3. Investing in High-ROI Repairs

In some cases, strategic investments in certain repairs can deliver significant returns. According to remodeling industry data, some improvements consistently offer exceptional return on investment (ROI), including:

• Garage door replacement (194% ROI)

• Entry door replacement (188% ROI)

• Manufactured stone veneer (153% ROI)

These specific improvements can dramatically improve curb appeal without requiring extensive remodeling or months of work. The right upgrades can transform a dated exterior while providing nearly double your investment back in increased home value.

A real estate agent familiar with your local market can advise on which improvements might be worth the investment in your specific situation. They can help determine if current market conditions justify making repairs before selling or if an as-is sale makes more financial sense.

4. Consider Cash Buyers for Quick Sales

If time is a factor – perhaps because care costs are mounting or the family lives far away – cash buyers or investors may provide a faster solution. Investors often specifically look for homes in poor condition as potential renovation opportunities.

These buyers typically:

• Purchase homes in as-is condition without requiring repairs

• Close quickly (often in as little as 10 days)

• Require minimal paperwork

• Eliminate the need for showings, open houses, and multiple visits

While cash offers may come in below market value, the convenience and speed can outweigh the price difference, especially when maintaining the empty house is costly or difficult. Many companies now specialize in providing cash offers for homes in almost any condition, making this an increasingly accessible option.

Option 2: Rent Out the Property

Renting mom's house can provide ongoing income to help cover care costs while retaining the property as an asset. This approach makes sense if:

• The housing market is temporarily depressed

• You anticipate mom might return home someday

• The property is in a desirable rental location

• The family wants to keep the asset but doesn't want to live there

• The home is in good condition or needs only minor repairs

1. Consider Professional Property Management

Managing a rental property can be challenging, especially if you live far away or have other significant responsibilities like caring for your parent. Professional property management services can handle tenant screening, maintenance requests, rent collection, and legal compliance, typically charging 8-12% of the monthly rent.

2. Be sure to have cash reserves for large repairs

Rental properties inevitably require maintenance and occasional major repairs. Without adequate cash reserves, a significant issue like a failed HVAC system or roof damage can quickly turn your rental property from an income source to a financial burden.

3. Think about the family dynamics (& who might not be helping out when the time comes)

Before choosing the rental option, have frank discussions with all involved family members about responsibilities, income allocation, and decision-making authority. Clear agreements upfront can prevent family conflict later, especially if some siblings are more involved in mom's care than others.

4. What if the tenant isn't paying

Even with careful tenant screening, payment problems can arise. Have a plan for handling missed rent, the eviction process if necessary, and alternative funding sources for mom's care if rental income is interrupted.

Option 3: Keep the House in the Family

Sometimes the best solution is to keep mom's house within the family, especially when there are strong emotional attachments or long-term family benefits to retaining the property. This option might involve:

• A family member moving into the home

• Shared ownership among siblings

• Using it as a vacation property or gathering place

• Holding it for future generations

This approach preserves family heritage and memories while potentially providing practical benefits. However, it requires careful planning and honest communication to avoid conflicts.

If multiple family members will share ownership, consider creating a formal legal agreement that addresses:

• How costs will be divided

• Who can use the property and when

• Decision-making processes for repairs and updates

• An exit strategy if a family member wants to sell their share

• How the property will be maintained

Legal structures like a family trust or LLC can provide a framework for shared ownership that minimizes disputes and ensures clear guidelines for everyone involved.

Key Factors for Your Decision

When deciding what to do with mom's house, several important factors should guide your decision:

1. Home's Current Condition and Value

Understanding the home's true value in its current state is essential. Even homes in poor condition have significant value, which can be estimated using professional valuation tools that consider:

• The property's location

• Current condition

• Comparable sales in the area

• Potential appreciation or depreciation

A professional evaluation can help determine whether investing in repairs before selling would provide a good return or if selling as-is makes more financial sense.

2. Local Real Estate Market Conditions

The current state of your local real estate market significantly impacts your options. Market conditions can determine whether repairs are worth the investment:

• In a seller's market with limited inventory, even homes needing work may sell quickly at competitive prices

• In a buyer's market, you might need to invest in improvements or accept a lower price

• Rental demand varies by location and can determine whether renting is viable

Working with a real estate agent who understands both the local market and the unique circumstances of selling a home for elder care purposes can provide valuable guidance on timing and approach.

3. Your Mom's Financial Needs for Care

Long-term care costs can be substantial, and your decision should consider:

• Monthly costs for assisted living or nursing care

• Medicare and Medicaid eligibility requirements

• The potential need for additional funds as care needs increase

• How long existing funds will cover care expenses

If immediate funds are needed for care, selling may be necessary despite other considerations. Understanding exactly how much money will be required for quality long-term care should be a primary factor in your decision.

4. Family Circumstances and Long-Term Goals

Every family's situation is unique, and important factors include:

• Geographic proximity of family members to the home

• Financial resources available for maintaining the property

• Emotional attachments to the home

• Tax implications of different options

When a parent moves to assisted living or nursing care, the decisions about their home often become a test of family unity. Taking time to consider both immediate needs and long-term consequences can help prevent regrets later.

Making the Right Choice for Your Family's Future

There's no single perfect answer when deciding what to do with mom's house when she moves to care. The right choice balances practical financial considerations with emotional factors and family dynamics.

Start by gathering information about the property's value, market conditions, and available options. Then have open, honest conversations with all family members involved. Consider consulting with professionals including:

• A real estate agent with experience in your market

• An elder law attorney familiar with care funding issues

• A financial advisor who understands senior care needs

• A tax professional who can explain tax implications

Remember that whatever option you choose, the goal is ensuring your mother receives the care she needs while making the most of this significant asset in a way that honors her legacy and supports your family's future.

Sage Senior Support specializes in helping families handle the complex real estate decisions that come with transitioning parents to care facilities, providing the expertise and compassion you need during this challenging time.