Selling Your Home to Pay for Senior Care: 5 Things to Consider
As you or a loved one begins to explore options for assisted living or long-term care, it’s natural to consider how to pay for it. For many seniors, home equity is one of their most significant assets. That’s why selling a house to pay for assisted living or other senior care services has become an increasingly common solution.
But before you list your home, it’s important to understand the financial, emotional and logistical factors involved. Below are five essential tips for seniors selling their homes to keep in mind as you navigate this important decision.
1. Timing Matters: When Should Seniors Sell Their Home?
Real estate markets fluctuate throughout the year and the timing of your sale could significantly impact your return. Understanding when seniors should sell their home depends on current housing demand, personal readiness and care needs. Spring or summer may attract more buyers, but urgency related to care requirements may dictate a different timeline.
If you’re part of a program like Springpoint Choice, you’ll gain access to care coordination that can help ease transitions, including moving timelines, service referrals and planning ahead for long-term care needs.
2. Understand Capital Gains Tax for Seniors Selling Their Homes
Before listing a property, speak with a tax advisor to understand how a sale could affect your taxes. For many older adults, the capital gains tax for seniors selling their homes is a key consideration, especially if the home has appreciated significantly in value.
Seniors may qualify for a capital gains exclusion of up to $250,000 ($500,000 for married couples) if the home has been a primary residence for at least two of the last five years. Proper planning can help you maximize this benefit and avoid unexpected tax burdens.
3. Evaluate All Associated Costs of Selling
Selling a home comes with expenses – from realtor commissions and repairs to staging and moving costs. These fees can eat into your net proceeds, so it’s wise to create a detailed breakdown ahead of time.
If you’re selling the home to pay for senior care in the near future, also account for any overlap in housing and care costs during the transition. Programs like Springpoint Choice offer benefits including guidance on budgeting and managing transitions thoughtfully and efficiently.
4. Explore Alternative Funding Options
While using home equity is common, it’s not the only path. Alternatives like bridge loans, long-term care insurance, life insurance policy conversions, or even renting the home can offer temporary relief or help delay a sale until the market is more favorable.
Some families also consider care-at-home models, such as the ones offered through Springpoint Choice, which provide peace of mind and care continuity while allowing seniors to remain in their current residence longer. With services available across many parts of New Jersey, this option supports aging in place while offering access to a trusted network of care professionals and long-term planning guidance.
5. Align the Sale With Your Long-Term Care Goals
Ultimately, the decision to sell a home should align with your bigger-picture goals for care and lifestyle. Is the home too much to manage? Does the sale offer the financial flexibility to explore better care options?
Springpoint Choice helps members plan for future care while remaining in control of their decisions. By offering a variety of plan options that include access to care coordination, personalized planning and support resources, we help older adults navigate transitions with greater clarity and confidence.
Moving Forward With Confidence
Selling a home is never just a financial decision – it’s also an emotional one. But with thoughtful planning, expert guidance and a long-term care strategy, it can be a smart way to fund a safer, more supported future.
Contact us to learn more about how Springpoint Choice helps you stay independent longer while preparing for the future. Our membership program offers care coordination and planning tools that put you in control so you can focus on what’s next.