Selling the Family Home to Pay for Assisted Living:
A Guide for Adult Children

Why Selling the Family Home Makes Sense

Before diving into the logistics, it’s important to understand why selling our parents’ home is often the best option for funding assisted living:

Key Steps for Selling the Family Home

Once we’ve made the decision to sell, there are several important steps to take to ensure a smooth and financially beneficial process.

1. Assess the Home’s Market Value

The first step in the process is determining the home’s market value. Partnering with a real estate agent familiar with the Baton Rouge area can provide insight through a Comparative Market Analysis (CMA), which evaluates similar recent sales in the neighborhood. If the home is older or outdated, simple improvements like fresh paint, updated fixtures, and improved landscaping can enhance curb appeal and help attract better offers. In any case, removing personal effects and cleaning it will always help the property sell.

2. Decide on the Best Selling Strategy

Timing the sale can make a big difference. While spring and summer typically bring more buyers to the market, urgency around securing assisted living may require a faster timeline. In such cases, selling to a real estate investor who can offer cash and a quick closing can be a practical solution—especially if speed and simplicity are priorities over maximizing the sale price.

3. Understand the Financial and Tax Implications

Selling a home involves expenses such as real estate commissions, closing costs, and potentially capital gains taxes. However, if your parents have lived in the home for at least two of the past five years, they may qualify for a capital gains tax exclusion (up to $250,000 for individuals or $500,000 for married couples). It’s also important to consider how the sale could affect Medicaid eligibility if your parent is applying for long-term care assistance. Consulting a financial advisor or elder law attorney can help you navigate these issues and make informed decisions that protect both care options and assets.

4. Prepare the Home for Sale

Simple steps like decluttering, depersonalizing, and completing minor repairs can significantly improve a home’s appeal to buyers. If time and budget permit, professionally staging the home can further increase its attractiveness and help potential buyers envision themselves living there—often leading to quicker offers and better sale prices.

5. Consider Selling As-Is

If making repairs or updates isn’t possible due to time or budget limitations, selling the home as-is can be a better option. Many investors and cash buyers are open to purchasing properties in their current condition, providing a quicker closing process with fewer complications.

Assisted Living Financing Options to Bridge the Gap

In some cases, families may need immediate funds to help pay for assisted living before the home sells. Short-term financing options include:

• Bridge Loans: A short-term loan that provides quick access to funds until the home is sold.
  
  
• HELOC (Home Equity Line of Credit): If the home isn’t yet sold, a HELOC can allow access to the equity for immediate care needs.
  
  
• Reverse Mortgages: For parents still living at home, this option provides cash without requiring an immediate move.
  
  
• Private Loans from Family Members: Some families choose to pool resources to cover assisted living costs until the home sells.

Choosing the Right Buyer

Depending on our timeline and financial needs, different buyers may be more suitable:

• Traditional buyers: If we can afford to wait, listing on the open market may yield the highest price.
  
  
• Real estate investors: If we need a fast sale, investors can buy the home “as-is,” avoiding the hassle of repairs and long closing periods.
  
  
• Cash buyers: Some companies and individuals specialize in quick, cash purchases, which can be beneficial when assisted living arrangements require immediate funds.
  

BuyHousesBR specializes in helping families sell their homes quickly and efficiently so they can focus on their loved ones rather than a lengthy sales process. We provide fair cash offers with flexible closing timelines and can assist with removing unwanted belongings, making the transition smoother for everyone involved.

Emotional and Practical Considerations

1. Helping Parents Emotionally Detach

Selling the family home is deeply emotional. Allowing parents to reminisce, involving them in decisions, and preserving keepsakes can help them process the change while easing the transition.

2. Securing the Right Assisted Living Facility

Before listing the home, it’s important to ensure a spot is available in the desired assisted living community. Some facilities have long waiting lists, so planning ahead is crucial. If you sell to us, we can be flexible and let you choose the closing date.

3. Planning for Moving Costs

Beyond the sale itself, we must budget for moving expenses, storage, and any transition-related costs. If downsizing before assisted living, a professional organizer can help sort through belongings and manage the move.

4. Creating a Comfortable New Environment

The transition to assisted living can be emotionally challenging. Visiting the new residence together, meeting staff, and setting up a space with familiar items can help ease the adjustment.

Taking the Next Step

Selling the family home to pay for assisted living is a major decision, but with careful planning and support, it can provide financial relief and ensure your parents receive the care they deserve. If you need guidance on selling your home in Baton Rouge, BuyHousesBR is here to help. Call us today at 225-217-1778 to discuss your options and find the best solution for your family.