There comes a time where moving to an assisted living facility is the best option for many senior citizens. Whether it’s due to chronic health conditions, safety concerns, or to remain in a healthy social environment, many senior citizens make the sensible choice to move into a retirement home later in life.
But senior homeowners often find themselves not knowing what to do with their current residence as they make the transition into a retirement home. If you find yourself in this situation, you’ll want to keep reading.
This article will discuss several options for senior citizens when moving to assisted living and how you can make the best choice for you and your family during this transition.
Assessing Your Situation
Before making any big decisions, it’s important to assess your situation and identify the reasons why you need to move to a senior living facility. This could be due to health issues that impair mobility or the need for support when it comes to daily activities.
After assessing your reasons for moving into a retirement home, it’s time to consider the financial implications of maintaining your home if you choose to keep it. Homeowners must continue to pay property taxes, utilities, and keep up with maintenance and landscaping for the home.
Also take into account the sentimental value of your home and your emotional attachment. If you’ve raised a family in the home and shared many good memories there, it could be more difficult to sell.
The last factor to consider is the current housing market. Do some research to find out if it’s a buyers or sellers market and local neighborhood trends, as this could impact your home’s value and marketability to potential buyers.
Options for Your Home
Senior homeowners have several options when moving to an assisted living facility. The decision should depend on the homeowners personal preferences and the financial impact that selling or keeping the home has on the homeowner.
Selling Your Home
Selling the home is one of the most popular options when moving to an assisted living facility for several reasons. Senior citizens who’ve lived in the home for many years have likely built up significant equity which can be realized through the sale.
Additionally, proceeds from the sale can be used to fund the assisted living expenses of the elderly throughout their time at the nursing home. Homeowners may also use the funds for estate planning in preparation to leave their heirs a nest egg after their passing.
Homeowners who decide to sell should seek out a trusted real estate agent or professional homebuyer in their area. One of the benefits of working with a homebuyer is that they can often close on the sale quickly and provide a lump sum for the property. Homeowners won’t need to go through the traditional real estate process to find a buyer, and they can keep their privacy without having to show the property to dozens of potential homeowners.
On the other hand, real estate agents typically command a higher sale price and have strong negotiating skills to find you the best deal. They’ll also handle staging your home and marketing the property to attract a large pool of buyers during the selling process.
Renting to Tenants
Senior homeowners may also choose to rent their property to tenants and collect rental income each month. This rental income can potentially be used to fund assisted living expenses on an ongoing basis without having to worry about running out of resources. Instead of a lump sum payment, rental income is consistent and stable when placing the right tenant in your property.
However, renting to tenants means you or someone you trust will become the landlord and is responsible for maintaining the property and responding to tenant concerns. Additionally, you’ll be responsible for dealing with possible evictions and repairing the property from damage.
Many homeowners who decide to rent their homes work with professional property managers to handle these day-to-day concerns. Property managers find and screen tenants, handle tenant inquiries, deal with late payments, and respond to maintenance requests so you won’t have to.
Keep in mind that property manager fees can be high, which will eat into your monthly rental income and decrease your profits when renting to tenants.
Gifting or Transferring
Gifting or transferring a home is the process of legally transferring ownership of the property from the current owner to another person or family member.
One of the reasons elderly homeowners might choose this option is to help their family members find an affordable place to live. If the home is completely paid off or has lower monthly payments than other homes in the area, it can be a great way to show generosity to other family members.
The gifting and transferring process starts with identifying the recipient and working with them to get in touch with an attorney. Contacting and working with a lawyer is essential to ensure the gifting or transferring process complies with local regulations and tax laws.
Homeowners may choose to transfer the property as an outright gift, sale at a reduced price, quit claim deed, or living trust. Make sure to consult with your attorney or estate planner to find out which one of these options is right for you.
Final Thoughts
Transitioning into a retirement home or assisted living facility can be a challenging and overwhelming process. Coupled with the possibility of having to let go of your home as well, many senior citizens find themselves in a difficult situation and experience a mix of emotions.
Luckily for senior homeowners, there are several options when it comes to the decision of what to do with your home when moving to assisted living.
Selling your home tends to be the most popular option that allows you to live off the proceeds from the sale, while renting to tenants can provide stable rental income. Homeowners who choose to gift or transfer their home to a friend or family member may explore those options with the help of a qualified attorney or estate planner.
Do you want to sell your house for cash fast? Contact Capable Home Buyers to get a cash offer for your home in the Virginia area today!