Getting older is never easy, either for the person doing the aging or for the people around them. And it becomes even more complicated if they own their own home. What should you do with it? Is it safe to keep living there without a support system? Is it a good idea to sell it? Whether you're considering your options as you get older or making preparations for your parents or another family member or loved one, here's a brief guide to figuring out what to do with a person's home as they age.
What Are the Options for Seniors?
When it comes to getting older, there are many possibilities for living and caring, but they all boil down to two basic options.
- Aging in Place: Aging in place means that as a person gets older, they remain in the house they're currently living in. This is great for people who want to maintain their independence as they age or who want to stay in familiar surroundings.
- Selling the Home: If your loved one has difficulty caring for themselves or maintaining their home, then selling it is probably the best option. They can then downsize to a smaller place, move in with their children or other relatives, or use the money from the sale to pay for an assisted living facility.
Considerations for Aging in Place
Is aging in place a good idea? Here are a few factors to consider.
Health/Lifestyle
Are you enough, mentally and physically, to live independently? Do you have trouble doing things around the house or need help with tasks you used to be able to do unassisted? This is, unfortunately, something that many people, regardless of age, have difficulty gauging objectively for themselves. It's often a better idea for family and friends to look at their aging loved one's lifestyle, see how they're doing and where they might be struggling, and make the decision together.
You also need to ask which you value more: independence or medical security. If you'd rather live on your own and take care of yourself, then aging in place is a better option. If you'd rather make sure your medical needs are taken care of, that you're in a safe and accessible place, and that you're cared for in case of an emergency, then consider an assisted living facility.
For couples, one partner may still be healthy and active, while the other needs an increasing amount of care. Even if you can age in place, can your partner do it with you, or will they need more assistance? Can you provide that assistance for them in your home, or would it be better to find a place equipped to provide for both of you?
Often, assisted living and medical care facilities have a wait list, as well. Wait times in California typically average at least six months and can be a year or more, depending on the facility. And assisted living through Medi-Cal has an average wait time of at least three years.
So even if you're not ready to go to one just yet, it might be a good idea to start planning now. At the very least, look at what options are available in your area and what and how long it will take to get into one of them, in the event your health fails. If you are ready to enter assisted living, or feel you might be soon, get on two or three different waitlists, to increase your chances of being housed quickly.
Access to Support
Aging in place is a more viable option if you have family in the area. If there is an emergency, is there someone you can call? Will it be a short drive for your children to come to your aid or a flight across the country?
If you are staying in your home, it's essential to have a plan in place in case of a medical emergency. A friend or neighbor could be your contact if your family isn't around. And if you're not ready to move to another city to be closer to your family, consider whether any circumstances would make you want to move. For instance, you may want to be close to your grandchildren.
Likewise, if you're not ready to go to an assisted living facility, you might consider other support systems to help you maintain an active and independent lifestyle. There may be a local senior center you can join, with activities you might enjoy and others your age looking to live independently. Maintaining that active lifestyle helps you to stay healthy longer, and with a community for support, you'll have people nearby you can turn to in an emergency.
State of Home
When it comes to the state of their home, the elderly have two major considerations. The first is maintenance. Is there someone in the house or nearby who's healthy and able-bodied enough to perform basic tasks like cleaning and lawn care? What about repairs? Does the house currently need any major repairs? Is there a plan to deal with any repairs that may arise in the future? Is there money for them?
The other consideration is accessibility. Particularly if there are stairs, it can make the house difficult to navigate - if not now, then perhaps increasingly with time. Additionally, if you live alone or with a partner, in the house where your children used to live, it may be too big for your current needs. Those basic maintenance tasks become more difficult as you age, which can cause the house to become dilapidated and unsafe. Downsizing to a more manageable space might be a better option.
Letting home maintenance go can in turn pose accessibility issues for children and loved ones. As household tasks become more difficult, clutter accumulates. This then leads to the long and painstaking process of sorting through vast, disorganized piles of belongings in the event of a parent's death, or other health crisis.
Finding important documents, records, or other items that need to be accessed in an emergency could prove difficult. If you fear this could become an issue, it might be a good idea to sort through and organize things now, selling, giving away, or donating anything that's not needed and putting things that are important somewhere safe and easily accessible.
Financial Goals
Are you financially equipped to continue living in your current home? Many people, particularly if they're on a fixed income, have increasing difficulty maintaining their established lifestyle as they get older. The cost of living rises while your income remains unchanged, and your finances are depleted soon.
Fortunately, your home can actually provide a solution to this problem if you tap into its equity. Your home's equity is the total value of the property minus the amount you still owe on it. If you have a lot, you can refinance, to put some money away for a medical emergency. Or you can get a reverse mortgage, which pays a certain amount monthly to supplement your existing income for the remainder of your life. Then, when you die, the lender takes possession of your home, rather than passing it on to your children.
Considerations for Selling
If you do decide to sell your home, there are several things to consider.
Current Housing Market
Several factors drive the housing market. The main one is interest rates. Higher interest rates make it harder for buyers to afford a home. Fewer buyers in the market, in turn, drives down prices so that you won't get as much for your home.
Likewise, look at the number of houses currently on the market compared with the number of people looking to buy. If there are more houses than buyers, that means more supply and less demand, which translates to less money and a longer time on the market.
Other houses on the market are also an important factor when considering where you or your loved one wants to move once the home is sold. Is now a good time to downsize? What kind of space is right for their needs? Is there something like that available, and how much will it cost?
You also need to consider the condition of the home itself. If it's run down or needs work, that could make it challenging to find a buyer unless you're willing to invest a significant amount of money into fixing it up first. Of course, there is an easier way to find a buyer for your home, regardless of the condition, through Haven Homebuyers. We'll get to that in a bit.
If your home is in good condition, it might be more beneficial to rent it out rather than sell it right away. Particularly if housing prices are currently low, but you expect them to continue rising, you'll get more if you hang on to it and sell later - and in the meantime, you'll continue to draw income from renters.
Where Do You Want to Move To?
If you do choose to move, the next question is, where? Do you want to stay near your current town and community, or would you rather relocate? Do you want to move closer to your kids? Retire to the South of France?
There's also the issue of what kind of place you want. You could simply downgrade to a smaller home, or even an apartment or condo, if you still want to maintain your independence, without the maintenance concerns of a large house. This would also allow you to downsize your possessions, so there isn't as much for your loved ones to sort through after you pass.
You could also move to a senior community, with others your age looking to remain active. Or you could move to an assisted living facility, where things like meals and medical needs are taken care of. The question you need to ask yourself is, how much care do you think you'll require, either now, or a few years down the line? This will be the major deciding factor as you choose where you live.
Financial Goals
How much will it cost you to live in your new place? If you're downsizing to a smaller home, then you should be able to live more comfortably. However, if you're going to a medical or assisted living facility, or even an apartment that will require you to pay rent, then you need to look at your cashflow. Do you have enough to live? If you do buy a new, smaller home, are there property taxes to deal with? An HOA to pay into? What about maintenance costs? Do you have enough cashflow to keep up with all of it?
We talked earlier about home equity, which can be helpful in covering costs like this. If you're keeping your home, you tap into that equity by refinancing. But selling your home can be a good way to access that money as well. Will the money you get from your old home give you the cushion you need to live comfortably in your new home and cover all related costs? Does it make sense to sell your home to cover the costs of a senior care facility? Will that money last you the rest of your life, or will you need more financial plans in place for the future?
If selling doesn't make sense, you can also keep the property and rent it out, to supplement your income and cover the costs of your new space. This is a good option if you want to retain ownership of your home, particularly if you want to pass it on to your children. It's also a good idea if you think it may increase in value down the line.
Estate Planning
It's important to decide what happens to your estate - i.e. the whole of your possessions that you'll leave to your children after your death. Important questions to think about include:
- Should your home remain part of the estate to pass on, or should you sell it now?
- Do you want to divide some of your assets amongst your loved ones now, or wait until you pass?
- Do you want your home to remain in the family, or would your loved ones just be stuck with the burden of selling it after you're gone?
Sit down with your family and talk about these questions, to see which would be most beneficial for everyone. Both options have pros and cons. Splitting the assets now allows your heirs to avoid a lengthy probate after you're gone. However, it could also leave you with less money to take care of your own needs. If you're unsure of how much of your estate to divide now and how much to retain until after your death, talk to an estate lawyer, who can talk you through the process and help you work out the solution that best fits your needs. You might also consider consulting with a financial planner, who can help you set up a plan to ensure your expenses are provided for.
What Is the Easiest Way to Sell My Home?
Selling your home can be a long and involved process. A traditional sale requires repairs and maintenance first. Even if your home is in reasonably good shape, there are likely a few "quirks" you've gotten used to over the years that would be a turnoff for potential buyers.
Plus, there's cleaning your home and staging it so it looks good to buyers. This means packing away things like photographs, knickknacks, and other bits of decor that show your personality, and making your home look generically pleasant, so that potential buyers can project their own aspirations onto it instead. This may even mean painting the walls.
After that, there's the process of holding open houses, finding a buyer, and negotiating with them to get the best price and closing terms amenable to everyone. The whole process can be daunting if you're not ready for it.
Fortunately, if that doesn't sound like your cup of tea, there's an easier way. Haven Homebuyers eliminates the prep work, the open houses, and the complicated closing negotiations. Whatever state your home is in, we'll take it as-is and get you a cash offer on it within 24 hours, which you can then accept or reject, with no obligation either way. If you do accept it, you can close in as little as five days - or draw it out longer if you need more time to pack up, find a new place, etc. Whatever your needs are, we make it easy for you to get what you want.
Conclusion
Whether you're selling your own home or helping your parents to sell theirs, there's no easier way to do it than through Haven Homebuyers. We'll eliminate the hassles of selling and get you a cash offer immediately so you can get on with the rest of your life.
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