Selling a house’s becoming one of the most popular options for seniors who wish to fund their long-term plans, including senior care. However, transitioning out of a home and into some form of long-term care can pose complex and emotional challenges.
Many adults have spent their lives in their homes for at least 25 years or more. And thinking about transitioning to assisted living can be frightening.
Despite these emotional reservations that come with selling a seniors property, selling in order to help pay for senior care can still be a positive experience. Get familiar with what to expect and the steps to take when you’re selling a house to pay for senior care.
Costs of Long-Term Care for Seniors
Long-term care (LTC) homes, also known as nursing homes, continuing care facilities and residential care homes, provide a wide array of health and personal care services for Canadian seniors with medical or physical needs.
In Canada, 54% of LTC homes are privately owned and 46% are publicly owned. Senior residents in these homes usually require access to 24-hour nursing care, personal care, other therapeutic and support services.
Given the round-the-clock, up-close care that LTC homes provide for their residents, you can see how availing their services can quickly add up. In Ontario, monthly rates depend on the accommodations chosen. For instance, LTC rates in 2020 range as follows:
- $2,701.61/month for long-stay private;
- $2,280.04/month for long-stay semi-private;
- $1,891.31/month for long-stay basic; and
- $40.24/day for short-stay.
Statistically, almost half of all senior individuals will need LTC services at some point in their lives and the overall cost could reach up to $138,000. However, most seniors don’t cover the entire cost out-of-pocket.
A wide range of resources are available for seniors who need financial assistance, such as medical insurance, life insurance policies and government-assisted programs.
One popular way that many senior homeowners finance their long-term care’s by leveraging their home equity to help cover the costs by selling their house and using the profits to pay for their assisted living.
When Should You Sell Your House to Pay for Senior Care?
Should you sell your house before or after moving into senior living? This important question should definitely be asked before undertaking this investment venture.
Why sell your house before moving into senior care?
Selling a property’s one way to finance senior care. If a property doesn’t sell quickly, you’ll have to shell out from your savings to pay for senior living expenses.
Reasons to sell a house after moving into senior care
Circumstances may urge you to do so. If you observe that a senior exhibits signs to live alone safely, been hospitalized after a fall or critical health event and cannot return home safely, waiting may not be possible.
Although each factor’s important in determining the optimal timing for selling your house, the decision will largely depend on your individual situations and circumstances, especially related to your finances and the urgent needs of your senior loved ones.
5 Things to Gather for Before Selling Your House
Help simplify the process by gathering the necessary documents before selling your house.
1. The sales contract
This confirms the owner of the property, when it was purchased, the amount the current owner paid and notes any terms and conditions that may have been communicated to the current owner from the previous seller.
2. Maintenance records and receipts
Some buyers will want to know how recently house repairs were made. In addition, proof of capital improvements, such as roofing, driveway and flooring can help with sellers commanding higher profits.
3. Utility bills
Past utility bills ensure a seller isn’t behind or delinquent on payments and also provide potential buyers with an idea of estimated monthly expenses.
4. Home appraisal
A professional home appraisal can reassure potential buyers that a property is listed at a fair market price and is similar to other comparable properties in the area.
Warranties increase buyer confidence and can act as a powerful marketing tool for realtors. When a prospective buyer’s considering multiple properties, the peace of mind that a warranty provides could help to influence the decision.
Let’s Make it Easy: Sell to an iBuyer
If getting your property ready to be sold on the market seems like a daunting task and you’d rather just have the property sold quickly without the hassles, there’s a solution for that.
Introducing iBuyers. iBuyers typically offer a cash payment based on market data and other tools. If you agree with their offer, the deal can close within a few days. When dealing with iBuyers, be assured that it’s a guaranteed deal.
This trend is gaining traction nowadays due to its quickness, efficiency and the fact that the property can be sold ‘as is’.
Making a Move
Moving from your current property to senior living can trigger complex emotions. But by being prepared, this endeavor can turn out to be a smooth and positive experience.
Working with a trustworthy professional to help guide you with ample information on the different types of senior living and payment options, as well as connect you with local senior living communities as you make this transition.
We’re Here to Help!
Jellyfish Real Estate’s a team of real estate professionals. Our goal is to simplify your life, so you can spend less time worrying about real estate and more time enjoying life.
If you’d like to learn more about real estate or if you have any questions or concerns about selling your property, buying your next home, opting to rent or rent-to-own, visit our website or contact us today.