When you start shopping for a home, you probably have a very specific image of what you would like that home to look like. You probably also see the perfect neighborhood surrounding that perfect home. Every buyer sets out with an image of the house they want to own, but in reality compromises are often necessary in order to stay within your budget.
Compromising On The House
There may be certain things that are non-negotiable when it comes to your new home, such as the number of bedrooms or a two-car garage. But as you take a look at the homes that are within your budget, you may discover that it is not likely you will get everything on your wish list. But the great thing about owning a home is that you have the power to remodel it at any time. Once you are in your new home, you can renovate or even add on if necessary to create the home you really want. And if you have managed to stay below your budget, you will even have the extra money each month to make some of those changes.
Compromising On The Neighborhood
So you’ve found the house of your dreams, but the neighborhood isn’t precisely what you were hoping for. Too much traffic, some houses that are becoming run down, or many other issues can mar the area your house is in. In most cases, you will have to accept that you cannot change the neighborhood, and this means that you have to decide if the problems are things you can live with or not.
In some cases, buying in a run-down neighborhood can be a strategic move. If many people are buying up the houses and improving them, then your home might one day be worth a lot more. However, you must realize that this is a risk and it might not work out that way.
Another thing to bear in mind is that if you choose to buy the nicest house in the neighborhood, you may have trouble selling it down the line. If other houses in the area are available for less, why would anyone buy your expensive house to get into the area?
So Which Matters More?
In the long run, when it comes down to choosing between the right house and the right neighborhood, you should choose the right neighborhood. While you can change your house for the better, you can’t count on your neighborhood changing; in fact, it might get worse. So choose the best neighborhood you can afford even if the house there isn’t perfect.
If you’ve noticed that your senior parent needs more help to manage their day-to-day activities, you may be considering long-term care. This can be a good solution, as assisted living, memory care and skilled nursing communities provide expert care, an active lifestyle and friendships with other seniors. Many facilities also do residents’ chores and housework, leaving seniors more time to enjoy retirement.
However, the decision to move into senior care can bring up another problem: how to fund that care. For many seniors, selling their home is one option. Older adults who sell their homes get the proceeds from the sale available for their senior care budget. They also free up other money that’s currently being used for mortgages, property taxes and home maintenance.
The average price of assisted living in the United States is $4,500 per month, according to the Genworth 2021 Cost of Care Survey, and the cost of a semi-private room in a nursing home averages $7,908. Additionally, 20% of today’s 65-year-olds will need long-term care for longer than 5 years. Given how expensive this care can be, it’s important that you understand all the ramifications of selling a house to pay for senior living.
This guide has information to help you decide when to sell a home to pay for long-term care, the documents you need and the financial implications of this decision. You can also find information about other ways to finance long-term care and how to get professional help for your sale.
When Is the Right Time To Sell Your Parent’s Home To Pay for Care?
Many factors determine the right time to sell your parent’s home. The largest factor is likely to be the real estate market. In July 2022, the average U.S. home was on the market for 21 days; however, this can vary greatly depending on where you live. You may choose to sell to take advantage of a hot market. However, many more personal circumstances can influence whether you sell before or after moving into a senior living community.
Reasons To Sell Before Moving Into Senior Living
You’ll Have Fewer Expenses Once You Move
If the home is sold before moving into senior living, there’s no need to pay for upkeep of the house at the same time as you’re paying for senior care. If the home takes longer to sell than expected, having two sets of bills can be a big drain on your parent’s budget.
You Want To Pay Down Other Debts
If your parent has other debts, such as medical bills, it can be helpful to sell prior to moving into senior living. The proceeds of the sale provide a lump sum to pay off debts. Once any bills have been settled, you’ll have a clearer idea of how much money is available for senior living.
Reasons to Sell After Moving To Senior Living
Your Parent Needs Urgent Care
If your parent can no longer live alone or has been hospitalized due to an accident or illness, it may not be feasible to wait. In these circumstances, it’s best to make the move into an appropriate community and sell the home later.
The Home Needs Substantial Repairs
It’s much easier to complete renovations and repairs if the house is empty. If you plan to stage the house to receive a higher offer, it’s also a good choice to sell after your parent has moved out.
You’ll Help Your Parent Manage Stress
Living in a home that’s on the market can exacerbate the stress of a transition into senior living. For instance, the homeowner must find somewhere to go during open houses and viewings. Regular interruptions may increase the pressure or sense of difficulty that your parent may feel. It could be far less stressful to move into a senior living community before potential buyers start looking at the house.
You Could Ensure a Faster Sale
Real estate agents believe homes that are decluttered and staged tend to spend less time on the market. It’s much easier to keep homes in this state when no one is living there.
A Home Seller’s Checklist
What Documents Do You Need?
Documents You Definitely Need
The home’s sales contract: This confirms that your parent owns the property. It also lists when it was purchased, the purchase price and any terms and conditions that were included in the original sale.
Home appraisal: This is a professional assessment of the fair market value of the home. The purchaser needs this to organize financing. You should also provide the purchaser with the appraisal from when the home was last purchased.
Manuals and warranties: Provide the buyer with manuals and warranties for any appliances in the home, including the stove, fridge, washer and dryer.
Documents You May Need
Mortgage statement: If money is still owed on the home, ask the lender for a mortgage statement showing the payoff amount. This will help you calculate estimated proceeds from the sale.
Homeowners insurance documents: Be transparent with the buyer by providing proof of homeowners insurance plus any claims that have been made. This gives them information about damages and repairs and lets them know how much their homeowners insurance is likely to cost.
Maintenance records and receipts: Provide maintenance receipts, dated records of the most recent painting, gutter cleaning and window washing, as well as utility maps for electricity and gas systems. This shows the buyers what’s recently been improved as well as where they may need to make repairs when they move in.
Utility bills: A purchaser may ask to see past utility bills to get an idea of their monthly budget. While you’re not obligated to provide this information, it can help a potential buyer make their decision.
Homeowners Association records: If the home is part of a development, the buyer needs to know about the HOA prior to purchase. You should provide them with any HOA documents your parent has, including bylaws, rules and regulations, dues amount statements and copies of the minutes from HOA meetings for the past 2 years. If your parent doesn’t have these readily available, the HOA should be able to provide them.
Capital improvement receipts: Gather receipts from any big improvements, such as remodeled bathrooms or kitchens. You should also have receipts for a new roof, a pool or any other additions. This shows the buyer how the home has been improved. Capital improvements can also mitigate capital gains taxes, so these receipts will be needed at tax time.
Pre-inspection report: You can arrange an inspection of your home before you put it up for sale. This can let you know about any issues that would otherwise be a surprise when the buyer inspects the house. If you choose to get a pre-listing inspection, you must tell the prospective buyer about any issues that arise.
Financial Implications of Selling a Home To Pay For Long-term Care
Selling a home to pay for long-term care is a sensible choice for many seniors, but the decision may have financial implications. Understanding the taxes you’ll have to pay, as well as how the proceeds can impact your eligibility for benefits, can help you make an informed decision about the sale.
Taxes
Homeowners may owe both state and national capital gains taxes after selling their home. If you’re required to pay these taxes, there will be less money available for senior care.
Capital gains are the profits earned after selling an asset that has increased in value. Short-term capital gains are for investments owned for less than a year, which are taxed as part of your normal income. But property owned for over 12 months is considered long-term capital gains, which are subject to capital gains tax.
Tax matters can be complicated when selling a home, so it’s best to get expert advice from a financial advisor, accountant or elder law attorney. Professionals can advise you on the taxes in your state and how to minimize your tax bill.
Long-Term Capital Gains
Seniors are exempt from capital gains taxes on the proceeds of their home if they meet one of the following criteria:
Primary residence: If your home was your principal place of residence for at least 2 of the last 5 years, the IRS allows you to exclude a certain amount of the proceeds. In 2022, that amount was $250,000 for an individual and $500,000 for couples filing jointly.
Inability to live independently: The IRS grants exceptions for people who have become unable to care for themselves. If the house was your primary place of residence for at least 12 months out of the last 5 years, you can count time spent in a licensed care facility towards the 2-year residency requirement for a primary residence exemption.
Limited income: Taxpayers on a limited income don’t have to pay capital gains tax. In 2020, the income limit was $40,400 for an individual or $80,800 for qualifying widows and couples filing jointly.
If you’re not eligible for an exemption, the rate for capital gains tax is no more than 15% for most individuals. This is less than income tax rates, which helps keep the amount you owe low.
State Taxes
Some states, including Florida and Texas, don’t tax capital gains. But in most states, you’re liable for state capital gains taxes in addition to the federal tax. As every state’s rules are different, it’s best to speak to a tax advisor to learn how this can impact the sale of your home.
State capital gains tax rates are between 2.9% and 13.3%. Certain states have additional rules around capital gains. In Vermont, for example, you can deduct 40% of capital gains for assets held for longer than three years. In Washington State, real estate and retirement savings are exempt from capital gains taxes.
VA Benefits
Some veterans may be entitled to a number of benefits, including a veterans pension and Age and Attendance benefits. To be eligible for these payments, an individual’s net worth must be below a certain limit, which was $138,489 in 2022.
If the home is the veteran’s principal place of residence, it’s not counted among their assets. Once the home is sold, however, the proceeds become an asset — unless they’re used to purchase a new home within the same calendar year. If the home sells for a substantial amount, your parent may no longer be eligible for VA benefits.
The legislation has special asset rules for veterans who aren’t living in their primary place of residence due to health concerns. If the senior lives in a nursing home, other care facility or the home of a family member to receive health care, their home won’t be counted as an asset even if they no longer live there. But if the property is occupied by renters, the rental income is counted toward their income limit.
Given the complexity of the rules around assets and home ownership, it’s best to speak to an expert before making any decision about a future sale. The local VA center can answer any questions from both yourself and your parent.
Medicaid Eligibility
Medicaid is a government program that helps low-income individuals pay for health care services. It can help fund nursing home care and, in some states, pay for other types of long-term care — including assisted living and in-home care.
Medicaid is funded jointly by federal and state governments, then administered by states. This means eligibility criteria can differ depending on where an applicant lives. However, all applicants must meet financial eligibility requirements and the proceeds from a home sale can have an impact on whether you meet these criteria.
As Medicaid eligibility rules can be complicated, it’s a good idea to speak to an elder law attorney or Medicaid planner about the best way to sell your home.
Financial Eligibility
Medicaid applicants must have income and assets below the state limit to be eligible for Medicaid. Income includes wages, Social Security benefits, pensions and income from an IRA or 401(k). Countable assets include cash, stocks, checking accounts and real estate where you don’t reside. Household furnishings and burial trusts are some of the assets that aren’t counted.
If the Medicaid applicant or their spouse lives in a home as their primary place of residence, the property isn’t included as an asset. The home equity must also be below the home equity limit. This ranges from $636,000 to $955,000. California is the only state that doesn’t have an equity limit on a principal residence.
Once the property is sold, the proceeds become an asset. In most states, the asset limit is $2,000 for single applicants and $4,000 for married couples. People with assets above those amounts aren’t eligible for Medicaid. However, in many states you can spend-down your assets. This works by spending excess countable assets on non-countable assets, such as paying down debt and prepaying funeral and burial expenses. It’s important to check the local rules in your state before deciding to take this step.
Medicaid Look-Back Period
Medicaid also has a look-back period to ensure applicants don’t get around resource limits by selling their home for less than the fair market value. In most states, the look-back period is 60 months or 5 years. In California, the look-back period is only 30 months. This period starts on the day you apply for Medicaid.
Any financial transactions or asset transfers that occur during the look-back period are subject to review. This includes donations and gifts, in addition to transferring or selling property for less than the market rate.
If you do give away or sell your home for less than fair market value, it’s known as a look-back rule violation. In these cases, Medicaid assesses a penalization period where you’re ineligible for benefits. This is based on the difference between the home’s sale price and a fair market value. There are options for avoiding the penalty, including asset recuperation and an undue hardship waiver. These are difficult to qualify for, so you should speak to a Medicaid planner or elder law specialist for guidance.
Special Considerations When Selling a Home for Someone Who Has Dementia
If your loved one has Alzheimer’s disease or a similar form of dementia, there are additional challenges to selling their home. Generally, only the homeowner can transfer the home to a new owner. If your parent is having trouble understanding the need for the sale, or if a doctor says they’re no longer competent to sign the paperwork, you may not be able to sell the home.
However, some options allow you to step in and make decisions for your parent.
Power of Attorney
A power of attorney allows a trusted person to act on behalf of the senior. This trusted person is called the agent, while the senior is formally known as the principal. There are different types of POAs, including a general and a durable POA — the latter of which is oriented toward end-of-life decisions. Regulation regarding power of attorney varies across states, so you should look into your individual state guidelines.
Keep in mid that a POA can be complicated, especially when you will be acting on behalf of someone who’s incapacitated. It’s often best to seek help from an elder law attorney to ensure you’ve considered all the variables and created the right type of POA.
A POA must be signed by the principal. If they’re deemed incompetent, they won’t be able to sign. Because of this, it’s best to arrange this paperwork soon after your parent’s diagnosis.
Guardianship
If your parent is no longer able to sign a POA, you can petition for guardianship. To do this, you’ll have to prove that your loved one is impaired and unable to manage their property. After guardianship is assigned, you can sell property and oversee other decisions for your parent. However, this process can be lengthy and expensive. Again, an elder law attorney can help you through the process.
Managing the Emotions of Selling a Home
Managing your own and your parent’s emotions through the sale of a house can be challenging. It’s likely that everyone has a lot of memories that make it hard to say goodbye to the home. Many seniors also have conflicting emotions about moving into senior care that come up during the process. Consider these tips to help you and your loved one navigate the journey.
Wait until your parent is ready: If it’s at all possible, you should wait until your parent is ready to sell. Have a conversation about the possibility early so they have time to get used to the idea and feel comfortable about the decision.
Talk openly about their situation: Have an earnest talk about your parent’s needs, fears and what they want to achieve by selling the house. It’s also important that you understand their financial position and whether they still owe money on the house.
Emphasize the benefits: Make sure your parents understand how much they can gain by selling their home and moving to long-term care. Talk about financial and lifestyle benefits, as well as the time and energy they’ll save by not having to maintain the property.
Clarify how much they want to be involved in the process: If selling the home will be too stressful or difficult for them to manage, your parent can nominate someone as power of attorney to handle the details.
Take care of their belongings: It’s likely your parents have accumulated a lot of possessions over the years. Take your time sorting through everything. In most cases, belongings can be sold, donated or thrown out. However, make sure special items are kept for their next home or passed on to family and friends.
Pick the right real estate professional: Choose a real estate agent who understands all the nuances of selling to move into long-term care. They should be able to help you arrange an estate sale, hire packers and organize cleaners, leaving you with fewer tasks.
Keep the process transparent: Everyone involved should read and understand any contracts. Even if your parent is still willing and able to be involved in the sales process, you’ll be reassured if you see what they’re signing.
Other Ways to Finance Long-term Care
For some seniors, selling their house isn’t the right decision. There may be a spouse or other family member living in the home. Your parent may also need funds while you wait for the house to sell and the transaction to finalize. Thankfully, there are other options to help finance senior care.
Bridge Loans
Bridge loans are short-term loans designed to provide funds while waiting for the completion of other financial transactions. It’s most often used when a person buys a new home before the original house has sold.
For seniors, a bridging loan can help provide funds to move to a long-term care facility now, even if the sale of their home is taking a long time. This alleviates pressure to sell quickly, allowing your parent to wait for a good offer. It can also allow them to move while waiting for the sale to finalize.
It’s important to remember that bridge loans are unsecured. This means that the interest is likely to be higher than for a mortgage. Some lenders let multiple family members apply for a bridging loan. This would allow you and your siblings to be co-borrowers, helping to secure the loan without putting a financial strain on your parent.
Immediate Annuities
Immediate annuities are long-term arrangements between investors and insurance companies. In these agreements, the investor provides a lump sum to the insurance company. In return, the insurance company agrees to pay the investor regular monthly payments.
This can be a good way to protect the proceeds of a sale, especially if the home sold for a significant amount. The amount of monthly income you receive from an annuity depends on the lump sum amount and current interest rates. Your age and gender also have an impact. For example, women tend to live longer than men, so they receive a smaller monthly amount.
Other Financing Options
Other options for paying for long-term care include:
Rent Out Home:
Private rental of your home for a monthly income
Anyone who owns a home can do this unless local ordinances or HOA regulations prohibit it.
Medicaid:
Government-funded health insurance that may pay for long-term care, such as skilled nursing and assisted living.
Applicants must meet income and asset limits and may need to meet additional criteria, depending on the program. Criteria differ in each state.
Reverse Mortgage:
A mortgage that allows you to access the equity on your home. The loan, plus interest, is paid after you die, sell the property or move out.
You must be at least 62 years old and own and live in your home. The balance of the loan is due when you move out, so this is only useful if you intend to age in place.
Long Term Care Insurance:
An insurance policy that pays for long-term care not covered by traditional health insurance, Medicare or Medicaid.
Eligibility differs by provider; however, companies typically won’t cover someone who already requires care or someone 75 or older.
A benefit provided to people who served in the U.S. military that helps pay for long-term care. You may also be eligible for other payments through the VA.
You must receive a VA pension, and there are also functional eligibility criteria. The applicant must be a nursing home patient, be bedridden, have limited eyesight or need help performing daily activities.
Home Equity:
Equity loans and home equity lines of credit (HELOCs) allow you to borrow against the value of your home.
You must meet the bank’s loan criteria, including having a certain amount of home equity and the ability to make repayments.
Retirement Income:
Income from all sources, including pensions, 401Ks and Social Security.
No specific eligibility criteria.
Life Insurance:
Access to cash through your existing life insurance. Options include living benefits, tapping into the cash value and selling the policy.
Criteria for each option are different, based on your state, insurance company and policy.
Finding the Right Help To Sell Your Home
It’s often easier to navigate this journey with expert help. Even if you understand all the steps involved, delegating part of the process frees up your own time. This reduces your stress and allows you to concentrate on more personal actions, such as selling belongings, selecting a senior care community and settling your parent into their new home.
Real estate agents and elder law attorneys are the professionals most commonly sought out for assistance.
Real Estate Agents
Real estate agents are experts at selling homes. They understand the real estate market in their local area and can give you advice about how to get the best price for a property. A good agent can tell you if renovations are worth the money or if you should sell as-is. They can also help you with staging the property and advise you whether you could sell with the furniture included.
Many real estate agents are gaining expertise in helping seniors downsize or sell their homes to pay for long-term care. The National Association of Realtors has a Seniors Real Estate Specialist designation that can help you identify professionals with specialized knowledge. You should also look for someone with experience selling homes quickly for top market value. Visit the National Association of Realtors member database to find an agent in your local area.
Elder Law Attorneys
An elder law attorney can help you set up trusts, powers of attorney and guardianships. They also have knowledge about Medicaid and other benefits and can give you advice on whether it’s in your best financial interest to sell your home. Having the advice of an attorney can ensure that any arrangements you make are legal and help protect profits of the sale.The National Academy of Elder Law Attorneys keeps a database of elder law specialists. You can find someone in your area who understands the nuances of your state’s laws. If you’re worried about the cost of an attorney, many states provide free legal advice to seniors. Check with your Area Agency on Aging for local resources.
Reviewed by: Deidre Sommerer | Date Published: December 2, 2022
Deidre has worked in the healthcare field for over 35 years and specializes in Geriatrics. Deidre is a nurse who holds a certification from the National Academy of Certified Care Managers and is a Certified Dementia Practitioner. She has worked across all healthcare settings, with a concentration on the community and helping older and disabled adults age in place. She has worked on NIH grant-funded program evaluation projects and considers herself a life-long learner. Deidre is a valued team member at The Hartford HealthCare Center for Healthy Aging in Hartford, CT.
If asked about major life changes, most people would probably think of their younger days. While some older citizens are settled since their decades of work and raising children are far behind them, others make significant lifestyle decisions in their golden years, including where they will live if their current home is no longer suitable.
The home they purchased many years earlier might have cumbersome stairs that they struggle to climb, a yard that’s difficult to maintain or more rooms than necessary. Its location may not be suitable either because it’s too noisy and busy or too far from anywhere.
During this time, some seniors seriously consider aging in place. This term refers to older people who choose to live independently in their own homes as they age, rather than entering a residential care community, such as assisted living. A University of Michigan National Poll on Healthy Aging conducted in 2022 asked a sample of seniors nationwide about their preferences regarding aging in place. This study found that 88% of 50-80-year-olds think it’s important to remain in their homes for as long as they safely can.
This guide considers several aspects of aging in place, including the best location to age in place, what seniors should look for in a new home and which professionals can make relocating easier. It also covers several options for buying a home and finding ways to pay for it.
Where Should You Age in Place?
Aging in place can mean different things to different seniors. For some, it means continuing to live in their existing home, often the place where they raised their kids. For others, it means relocating to a new home that’s more suitable for their current and future needs. This frequently, but not always, means downsizing and relocating, sometimes to another city or state. The following section looks at what seniors should consider about aging in place. It also compares two popular options: senior apartments and retirement communities.
Things to Consider About Environment When Aging in Place
Environment is possibly the most important factor when choosing somewhere suitable to age in place. What was once the right home, city or state may no longer be suitable for the older you. For example, you might expect that at some point you’ll no longer be able to drive, making traveling more complicated and time-consuming. Therefore, you should consider what your ideal environment will look like as you age. If you’re fortunate, your current location will satisfy your needs, but if it doesn’t, you may wish to consider relocating. Some things you should think of include:
Health Care Access: It should be easy for you to get to your doctor or nearest hospital and for medical professionals to come to you in good time.
Neighborhood Safety: Neighborhoods evolve over time. The one you moved into may not feel as safe as it did. Comparing it with the place you’re thinking of moving to may be worthwhile.
Visitors: Loneliness and social isolation can cause serious health conditions, so you should consider how frequently your loved ones can visit your home.
Socializing: Just because you’re aging in place doesn’t mean you want to abstain from socializing. You should consider the proximity of the nearest senior center and other venues where your age group congregates, such as libraries.
Shopping: If you reside in a rural area and can no longer drive, shopping for groceries may become a problem. Consider how close you are to convenience stores, particularly if you can’t rely on someone to help you out regularly.
Family: Consider how easy it is for you to visit your family. Also, think about their journey times if you have an emergency.
Things to Consider About Your Personal Preferences When Aging in Place
Your environment is primarily general, but there are also factors specific to you and your lifestyle that should factor into your decision about aging in place. The following list covers some things to consider.
Grandchildren: Many seniors are grandparents who value the time they spend with their grandchildren. Ask yourself if your current location makes it easier or more difficult to enjoy time with them. It may be that they’re too young to travel without a parent, which could greatly reduce visiting opportunities.
Hobbies: Retired seniors often spend their free time indulging in hobbies. Is your current location a problem or a benefit? For example, someone who likes fishing may want to be close to a river or lake and won’t want to move somewhere too far from either.
Travel: Do you expect to travel frequently to places you like? If so, use Google Maps to gauge the distance and journey times to the places you’ll visit most. Would moving somewhere else reduce the time you spend in the car enough to justify relocating?
Home Modifications: Will your home need to be modified? Perhaps there’s a staircase that you might one day need a stairlift to ascend. If the costs of modifying your home are more expensive than moving to somewhere more senior-friendly, it may be time to consider relocating.
Home Maintenance: Although you may not be struggling to maintain your home inside and out, what will happen as you age or if you sustain an injury? Is there someone nearby who can help regularly, or will you have to pay a company to maintain your home for you?
In-Home Care Services: Will you need in-home care? If so, how will you pay for it? Original Medicare might pay if you need skilled nursing, but it won’t pay for an agency to help with activities of daily living, such as bathing and dressing. To get help from Medicaid, you’ll need to satisfy the strict qualifying criteria.
Senior Apartments Versus Retirement Communities for Aging in Place
Seniors can age in place in their own homes, but there are two popular alternatives. Often marketed as 55+ communities, senior apartments and retirement communities are similar, but the differences are noticeable. The following table compares both of these options.
Senior Apartments:
Multi Unit Properties where residents are restricted by age (normally 55 or 62)
Must comply with the Fair Housing Act
Residents Rent their apartments
Typically 1 or 2 bedroom apartments
Similar to standard rental costs for an apartment
Some are subsidized to make them more affordable for low income seniors
Care services are uncommon because senior apartments are for relatively active adults
Some may provide very basic car, but don’t expect it
Usually a clubhouse with space for social activities
Grounds, building and apartment maintenance services
Retirement Communities:
Resort style community
Residents must be aged 55 or older (communities may have different age restrictions)
Residents usually have the option to buy or lease their home
1,2 or 3 bedroom apartments, stand alone Villas, Cottages, Duplexes
Monthly fees vary because there are so many living options (e.g. apartments, villas, etc.) as well as community amenities.
Monthly fees can be anywhere between $1,000 and $10,000 per month due to an array of factors, such as if the senior has bought the home and the community’s wow factor.
Home and grounds maintenance fees are usually included when the home is leased. Seniors who buy usually pay additional monthly fees (up to $1,500) for these services.
On-site care services aren’t standard, so you’ll need to check with an individual community if you require basic levels of care.
Residents may be able to hire an in-home care service agency (check with the community).
On site shared dining
Library
Common interest groups
Organized social activities
Beauty Salon/Barbershop
Game Room
Fitness Center
Swimming Pool
Spa
Tennis Courts
Golf course (sometimes included in luxury communities)
Housekeeping
Laundry
Linens
Concierge Services
Transportation
Meal Preparation
What to Look for in a Home for Aging in Place
When you’re looking for a home where you can age in place, whether that be in an all-ages community or a retirement community, there are certain things you should be on the lookout for to help ensure it’s a safe location to age in place. Bring the below printable checklist with you as you tour potential residences to see what safety features for aging in place the home does or does not have.
Working with Professionals to Help You Buy a Home
You may have bought and sold a property before, so you’re probably aware of the benefits of involving professionals to smooth the process and help you avoid potential pitfalls. This may be a real estate agent, broker or insurance agent. You should also consider working with professionals who specialize in helping seniors relocate to new homes and 55+ communities. The following three are possibly the most important.
Senior Home Safety Inspectors
A Senior Home Safety Inspector provides a comprehensive assessment of their client’s existing residence or potential new home. The inspection’s purpose is to discover possible hazards and suggest improvements to make the home more senior-friendly. A typical inspector will look for:
Tripping hazards, such as slippery flooring, floor seams in entryways and loose outdoor paving
Electrical concerns, such as faulty wiring and a lack of smoke and carbon monoxide alarms
Plumbing issues, including baths that may be difficult to use without falling
Door width and ramps if the senior uses a wheelchair
Stairs and railings that may be hazardous due to loose carpeting or shaky banisters
Round doorknobs and faucets the senior struggles with that can be replaced by lever-style alternatives
Senior Real Estate Specialists
A Senior Real Estate Specialist (SRES) is a Realtor recognized by the National Association of Realtors as someone who specializes in helping seniors buy and sell homes. An SRES Realtor can help seniors deal with aspects of buying and selling that are specific to their age group. For example, they can advise on the pros and cons of 55+ communities they have experience with, develop strategies for downsizing and arrange and coordinate essential home repairs and staging.
An SRES-certified Realtor will also have knowledge of estate planning and relationships with local financial planners who specialize in retirement planning. The National Association of Realtors has a comprehensive database of the country’s SRES-certified realtors that seniors can access for free.
Senior Move Managers
A Senior Move Manager is someone who specializes in helping seniors relocate, which includes the emotional and practical challenges of moving. The following list includes some of the services they offer although these can vary depending on the senior’s needs.
Designing an age-in-place plan that may include relocation
Developing a plan to help the senior downsize to a more suitable living space
Arranging the disposal of items the senior won’t need or want in their new home while making sales as profitable for the senior as possible
Arranging the storage and shipment of the senior’s possessions
Organizing professional packing and unpacking services
Services related to moving home, such as finding a Realtor and preparing the home for sale
If someone you know has had a good experience with a Senior Home Manager, you should consider asking them for advice. To find a Senior Home Manager in your area, check out the search tool provided by the National Association of Specialty & Senior Move Managers.
How to Pay for a Home to Age in Place
Ultimately, paying for the home where you want to age in place will likely be your biggest concern. As previously mentioned, you can’t rely on Medicare, Medicaid or long-term care insurance to cover your costs. However, you have options depending on your income, credit score and available cash. The following lists some options.
VA Housing Assistance: Veterans and surviving spouses who satisfy eligibility criteria may be eligible for a VA direct or VA-backed loan to buy their homes.
Supportive Housing for the Elderly Program: This program from HUD helps seniors on very low incomes get the financing they need to purchase homes specifically designed and maintained for older citizens.
Mortgage: The Equal Credit Opportunity Act means a financial institution can’t discriminate based on the applicant’s age. If you can prove a consistent monthly income post-retirement (usually for three years), the institution must seriously consider your application.
Finally, you should get independent financial advice before entering any financial agreement. If you can, find an adviser with experience helping seniors buy homes in retirement communities.
Find a Retirement Community Near You Where You Can Age in Place
If you want to live in a community of other older adults with whom you can socialize, enjoy shared community spaces, and form friendships, a retirement community may be the best option for you to age in place. As opposed to buying a downsized home in a standard all-ages communities, retirement communities offer unique social benefits.
When choosing a retirement community, first decide on a price point and create a checklist of what your ideal facility must have and what you’d like, but are open to compromise on. Consider its location and if it makes it easy to visit surrounding attractions and for loved ones to visit you. Also think of the facility’s ability to satisfy your educational, social and spiritual needs.
Book a visit with each facility that meets your criteria, ideally that coincides with important daily events, such as mealtimes and classes, so you can see how it handles busy periods. If possible, try the food. Ask questions on an array of subjects, such as security, staff training and how the facility deals with emergency situations. Following these suggestions should help you narrow down your choices to one or two facilities, which should make it easier for you to decide and be confident with your decision.
Dr. Brindusa Vanta is a health care professional, researcher, and an experienced medical writer (2000+ articles published online and several medical ebooks). She received her MD degree from “Iuliu Hatieganu” University of Medicine, Romania, and her HD diploma from OCHM – Toronto, Canada.
One of the most significant benefits of military service is the VA home loan which can help you purchase a home or refinance an existing loan. This gives you the opportunity to get a mortgage with a competitive interest rate as well as a lower cost at closing without prepayment penalty. VA Home Financing is one of the few options available today for no money down mortgage financing. In addition, it gives increased buying power as the allowable loan-to-value and debt-to-income ratios are more generous than for conventional financing. These benefits give you the potential to buy a more expensive home than you might otherwise have been able to afford.
The VA does not actually loan you the money. They guarantee a loan made to you by a lender i.e. banks, savings & loans or mortgage companies. If a home loan is approved by your lender, the VA will guarantee a portion of that loan to the lender.
There is no maximum to the amount of the loan, but the VA does have a limit to how much it will guarantee. This limit can vary around the country and is based on which State & County the property is in. To find out what your area limits are click here:
No down payment as long as the sale price does not exceed the appraised value.
Loan-to-value ratio of 100%
Back-end debt-to-income ratio of 41% under certain circumstances
No private mortgage insurance
Limits on Closing costs, which may be paid by the seller
No penalty for early payoff
Loan is assumable by another qualified veteran borrower
Ability to apply for a new loan two years or sooner after a bankruptcy
The VA has no loan limits, only a maximum that can be borrowed with a zero down payment.
Are You Eligible for a VA Loan?
There are several categories for eligibility, but here are some of the major ones:
Veterans and service persons who have served more than 181 active-duty days during peacetime, unless discharged or separated from a previous qualifying period of active-duty service.
Veterans who served during WWII, Korea or Vietnam, if they served for 90 days and were honorably discharged.
If you have served for any period since August 2 1990, you can also qualify if you have served 24 months of continuous active duty, or the full period that you were called to active-duty (at least 90 days).
Have completed a total of 6 years in the National Guard or Selected Reserve.
Any spouse (who has not remarried) of a veteran who died while in service or from a service related disability, or a spouse of a serviceman MIA or a POW.
For full details of eligibility requirements click here:
What if you have lost or destroyed discharge papers? You will need to obtain a Certificate of Military Service. This can be achieved by completing GSA Form SF-180 and can be completed online at:
You will need this in order to apply for your Certificate of Eligibility unless you have your discharge papers.
How to Apply for a VA Loan
There are several basic steps in the VA home loan application process. The first thing you need to do is get your Certificate of Eligibility. This proves to the lender that you are eligible for a VA loan. Information on how to obtain this Certificate can be found at:
You can also contact the VA Eligibility Center by mail at P.O. Box 100034, Attn: COE (262), Decateur, GA 30331.
Once you have your COE, now you can approach lenders to find out much you can borrow and get your letter of pre-approval. This letter can often help in the offer process as it shows the seller that you are able to get a loan to purchase the house. Here is a sample form that you can use to work out ahead of time what you can afford. If you would like a copy of this worksheet please give me a call and I will be happy to send it to you.
There are many different types of mortgage available and you should definitely shop around for the best rates and terms. Here is a link to the Consumer Financial Protection Bureau website that will give you lots of info on mortgages and a mortgage calculator.
So, now you have chosen your lender, you have your letter of Pre-Approval in your hand – IT”S TIME TO GO HOUSE SHOPPING! Please make sure you find yourself a good Real Estate Broker with excellent knowledge of the VA loan process.
You’ve found your dream home! Now what? With the assistance of your Real Estate Broker you will make a formal offer to purchase the house and once the offer has been accepted and contracts signed you will start the process of submitting your mortgage application. You will be required to submit a significant amount of paperwork as evidence to support your ability to qualify for the mortgage.
va document checklist
Certificate of Eligibility; Obtain VA Form 26 1880
Complete Bank Statements from the most recent three months for all accounts
Most Statements from retirement, 401k, mutual funds, money market, stocks, bonds & inheritances
If applicable copies of spouses financial accounts and phone numbers
Latest credit card statements, including minimum payments and account numbers
Name, address and phone number of your landlord, or 12 months of cancelled rent checks
If you have no credit card bills copies of your most recent utility bills
If applicable, copy of complete bankruptcy and discharge papers
If you co-signed for a mortgage, car, credit card etc., copies of 12 months cancelled checks
If applicable copies of spouses credit card accounts
Copy of drivers license
Copy of Social Security Card
If applicable, copies of complete divorce, palimony or alimony paperwork
If applicable, copy of Green Card or Work Permit
If you are refinancing or own rental property you may also need to provide the following:
Copy of Note and Deed from current loan
Copy of Property Tax Bill
Copy of Homeowners Insurance Policy
Copy of Payment Coupon for current Mortgage
If Property is Multi Unit, copies of rental agreements.
So, I’ve already mentioned that you can get a 100% loan from the VA, BUT, that does not mean that you will have no costs. The VA charges a Funding Fee which varies depending on your personal circumstances and ranges from 1.25% up to 3.3%. Your mortgage lender may also charge an Origination Fee of up to 1%. The Origination Fee must include the following charges:
Settlement fee
Any additional appraisals and inspections
Escrow, closing fee
Document preparation
Underwriting fee
Processing Fee
Application Fee
Interest rate lock-in
Attorney fees (for work other than title)
Assignment fee
Photocopying
E-mail or fax
Photographs
Postage
Amortization schedule
Notary fee
Commitment fee
Marketing fee
Trustee fee
Truth in lending fee
Tax service fee
There are however some expenses that are NEVER paid by the VA borrower:
Termite/pest inspection
Attorney fees as a benefit to the lender
Mortgage broker fee
Prepayment penalties
HUD/FHA inspection fees to builders
Misconceptions About VA Financing
Some common misconceptions about VA eligibility and entitlement include:
* Eligibility for VA financing means guaranteed qualification for a loan, even with bad credit: Not true, every lender has different criteria for credit scores. Check with your lender to find out what their minimum score requirements are.
A bad credit report doesn’t matter because the VA guarantees 100% of the loan even if the borrower defaults on the payments: The VA does not guarantee 100% of the loan and your credit report/score is a vital component of qualification for a mortgage loan
A pre-approval or pre-qualification isn’t needed when the buyer plans to use VA financing: This letter from your lender can be an important negotiating tool during the Offer to Purchase Process and is often required by the seller to be presented with the offer as proof that you will have funds available to cover the cost of the purchase.
VA financing can only be used once: Veterans who had a VA loan in the past may still have remaining entitlement to use for another VA loan. Selling the property and paying off the loan fully restores the entitlement for future use.
WOW, that’s a lot of information! The process of finding and buying a house can seem completely daunting, especially to the first time buyer. All the more reason to get yourself experienced help from a licensed Real Estate Broker who will help you through from start to finish. They will offer advice, knowledge and support and will be able to connect you with other professionals in the area such as mortgage lenders, closing attorneys and home inspectors.
I hope that you have found the information in this blog useful, but if you have any questions or need more information please do not hesitate to give me a call at (252) 937-2121 or email me at valeriemckean.realtor@gmail.com. I will be happy to sit down with you and go through the process in detail from beginning to end.
Here at Century 21 Sterling Combs we are looking to actively support our military. We offer financial assistance to transitioning military who would like to pursue a career in real estate. We also offer that assistance to trailing spouses where appropriate. Century 21 also offers incentives for veterans. If you would like to receive a copy of the brochure “Heroes Wanted” please call (252) 937-2121, or email me at valeriemckean.realtor@gmail.com.
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As adults, we often assume that gardening is designed exclusively for us. Believe it or not, children also love to garden making this popular past-time a wonderful family-oriented activity. If you are interested in making gardening a family affair, consider the following ideas to help make your goal a successful one.
Why Children Love To Garden
Children love to create and there’s no better way to do so than by sharing in the fun of planting a garden. Because little ones also love color, they are naturally drawn to the landscape of a garden. In addition to that, they also can enjoy the pleasure of watching something grow that they had a hand in preparing.
What To Plant
If you want to enjoy gardening as a family affair, try planting something that the entire family will enjoy. Everyone loves strawberries; they are pretty and they taste great on a hot summer day. Planting strawberries is a terrific way to get your children to join in on the fun of gardening. Adding watermelon, apples, pears, oranges and other colorful foods will entice your family into the project. Don’t forget to plant pumpkins for Halloween! Not only will your children love to watch them grow, but they will also enjoy carving them for decoration.
How Your Child Can Benefit From Gardening
Gardening is a fun way to enjoy an activity with family, but it also teaches your child responsibility. If he/she is responsible for planting something, it will provide a lesson in patience as the seed turns into a mature plant. As they water the garden, they will also learn responsibility in that taking care of something is necessary for its health and survival.
Make Gardening Fun For Everyone
If you want to make any family activity fun, everyone in the family must have a specific interest in the project. In other words, just because you want to plant roses doesn’t mean that your child will share in your enthusiasm. As a family, go out to the store and choose something specific for each individual to plant. By allowing everyone the freedom of choosing their own project, they will be more likely to enjoy watching it grow and be proud of their achievement.
The Importance Of Sharing A Family Activity
One of the greatest things that a family can do together is to spend quality time enjoying a common interest. Instead of getting lost in a television program or a video game, your family can benefit from gardening by learning one of life’s most important lessons – sowing seeds is required to reap a bountiful harvest.
Landscaping Design Tips
As a homeowner, you can use a number of landscaping design tips to make your house look just as polished on the outside as it does on the inside.
Create A Path
One of the first things that a guest will notice as they walk up to your home is whether or not there is a defined path. Instead of simply allowing the lawn to be trampled down and act as a pathway to your front door, consider installing a stone walk. Not only will this be more visually appealing, but it will also keep both you and your guests from walking through the mud on a rainy day.
Make Your Mailbox Marvelous
The way that you maintain your mailbox says a lot about how you feel about little details. An appealing design might include the family’s last name, the street number or address and a colorful display of flowers surrounding the base or possibly even a decorative flag or covering.
Add A Touch Of Color
No landscape would be complete without the addition of a little color in the way of flowers and plants. Make sure to choose plants that will thrive in your particular region, making sure to keep in mind their tolerance to various temperatures and moisture levels. Before planting, check the soil to make sure that ample sunlight is available to promote a healthy life for your flowers and plants.
Curb Appeal
Nothing says curb appeal more than an attractive water feature. Whether you choose a do-it-yourself kit, which is available at most home improvement stores, or you hire a professional landscaper, a pond or waterfall is sure to be an asset to your landscape. If you really want to be the envy of your neighbors, consider adding a goldfish pond to your yard and building a decorative arched bridge for added accent above the feature.
Start A Kitchen Herb Garden
There is nothing like fresh fruits and vegetables from your own garden to give your health and taste buds a treat. Starting a kitchen herb garden is a great and easy way to give your food the fresh taste of summer all year round, and it is easy and inexpensive, too!
Pick A Spot That Gets Good Light
Most herbs require a good amount of sunlight to grow, so choosing a spot where they get direct light is important to making sure your herbs flourish. If your kitchen doesn’t get sufficient light, consider moving your herbs to a room that gets better light or purchasing an indoor herb garden kit that has a grow lamp.
Choose A Good Selection Of Herbs
While there are great herb garden starter kits that offer a useful selection of herbs, if they are not herbs you use often in cooking they are probably not the best choice. Also be sure you choose herbs that are compatible with the kind of light available in your space.
Know The Right Conditions For Growth
As mentioned, herbs need a considerable amount of sunlight, but they also require rich moist soil to grow to their full potential. Having your indoor herb garden by the kitchen sink is ideal. Also, making sure the soil gets proper drainage by planting herbs in pots with draining holes and adding stones to the bottom can make a big difference.
To Fertilize Or Not
There are a number of resources on indoor herb gardens that recommend you use fertilizers to give your herbs the maximum growth potential. However, there are many great natural choices that will not affect the taste or nutritional value of your herbs, and are better for the environment.
A kitchen herb garden is a great way to boost the nutritional value and taste of your food, and will bring some of summer’s taste and feel into your home all year!
How To Care For Your Lawn
If you love your lawn, it’s only natural that you would want to give it the proper care to help give it a healthy appearance. After all, your landscape is one of the first things that people will notice when they arrive at your home. Your lawn can either make or break your curb appeal.
Grooming
If you have weeds, remove them with the proper tools or by pulling them out of the ground manually. An important part of grooming your lawn is mowing it regularly to give it a manicured appearance.
Feed Your Lawn
Yes, even your yard gets hungry and what it craves more than anything is water. Most experts recommend that one thorough watering each week is preferable over a light misting every other day. When it comes to feeding your lawn, the best time of year to fertilize is during the spring. This is when your lawn begins to grow and its beautiful shade of green begins to come alive, which is why it’s important to make sure that it has all of the nutrients that it needs to enjoy the warm months ahead.
Treating Bald Or Bare Spots
What happens when your lawn begins to dry out or shows signs of brown spots? It could mean a number of things, but treating it properly will help to get your yard sparkling again. One way of doing this is by planting seeds so that new grass can grow. Before doing this, make sure to loosen the soil so that the seeds will have a healthy start. Your other option is to bring in sod, which is commonly used for larger areas that are in need of a quick fix. Just as you would loosen the soil for seeding, it’s important to do the same for sod so that it can properly attach to the surface of the lawn.
Pest Control
Your lawn is a reflection of your home, but it’s also a potential haven for pests. It’s important to pay close attention to the plants and/or flowers that you choose for your landscape as certain types can deter pests, while others may actually attract them. If in doubt, ask a local gardening expert or a representative at your local home improvement store for more information on this topic. If you develop a pest problem, there are products designed to protect your landscape and permanently rid the pests of your space.
We are thrilled to announce the launch of our brand-new blog, designed to be your ultimate resource for all things real estate! Whether you’re buying your first home, selling a property, relocating for military service, or simply curious about the real estate market, this space is for you.
At Century 21 Sterling Combs, we understand that real estate can feel overwhelming. That’s why we’re here to simplify the process and provide you with the insights, tips, and tools you need to make confident decisions.
Here’s what you can expect from our blog:
Expert Advice for Buyers and Sellers: From understanding the local market to preparing your home for sale, we’ll cover everything you need to know to navigate the real estate journey.
First-Time Buyer Guidance: We know buying your first home is a big step. Our blog will feature practical tips, checklists, and advice to make the process as smooth as possible.
Military Relocation Support: Relocating for military service? We’ll share resources and strategies to help you transition seamlessly, whether you’re moving to or from the Rocky Mount area.
Local Market Insights: Stay up-to-date with the latest trends, statistics, and neighborhood highlights in Rocky Mount and surrounding areas.
Lifestyle and Community: Features Discover what makes Rocky Mount a great place to call home. From schools and amenities to local events, we’ll showcase the best of our community.
Educational Content: Learn about the real estate process, from understanding contracts to the benefits of working with an experienced REALTOR®.
Guest Content: We will be inviting a wide variety of industry experts to share their knowledge and expertise with our followers, including insurance, home warranties, builders, home inspectors, to name just a few.
We’re passionate about empowering our clients, agents, and community with knowledge and resources. This blog is just one more way we’re committed to providing exceptional service and support. So, grab a cup of coffee and bookmark our page! We can’t wait to share valuable content with you.
If there’s a topic you’d love to see covered, feel free to reach out—we’re here to help.
Visit our blog at www.rockymount-homes.com or therealestatecompass.blog and start exploring today!
Let’s make your real estate journey an exciting and informed one.
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