What to Know About Selling Your Home in Orange County When Moving to Assisted Living
It can be hard to decide what to do with the family home when you move into assisted living. While you can turn it into a rental or leave it in the care of family, keeping your home means continuing to pay various ongoing expenses and risking the possibility of your property suffering unexpected issues like roof leaks or vandalism. In the end, selling your home might be the most convenient and financially secure decision. If you’re considering selling your home in Orange County after moving into assisted living, check out the following tips to ensure you’re making the right decision.
Paying for Assisted Living
Assisted living facilities can be costly, so it’s important to be prepared with an adequate funding plan. Selling your home may be the most practical decision if you need the money to pay for your care. While cost will be an important factor in your search for the right assisted living facility, it shouldn’t be the only thing you consider. Remember, assisted living facilities are designed to maximize your independence while offering help with day-to-day activities and providing a variety of socialization and recreational opportunities. So, take the time to tour different facilities until you find the perfect fit.
Avoiding Capital Gains Tax
Selling your home sooner rather than later may help you enjoy some significant tax breaks on your sale. Typically, homeowners don’t have to pay taxes any home sale profits under $250,000 (or $500,000 for married couples). This means that if you sell your home for more money than you bought it for, you won’t have to pay tax on your profits. However, you will only qualify for this tax exemption while your home is considered your primary residence. If you wait too long to sell your home after moving into assisted living, you may be facing some hefty taxes on your sale. Aim to sell your home within three years to avoid these taxes.
The Local Real Estate Market
Evaluating your local real estate market can help you decide whether it’s best to sell your home now or hold onto it for a while. According to the Motley Fool, the spring is typically the best season to sell a home in the shortest amount of time for the highest profits. However, this can also work against you if there is a lot of competition in your local market. Make sure you have a good understanding of your home’s current value and how it relates to your real estate market.
Talk with an experienced and knowledgeable realtor like George Chestnut to learn about the local market before deciding to sell. Forbes recommends looking for a real estate agent that you like and ensuring they have your best interests at heart rather than choosing an agent based on their experience. Your realtor will also help you prepare your home for sale and price your property strategically to get the highest offers in the shortest amount of time. You’ll be working closely with your realtor throughout the sale process, so it’s important to find a good fit.
The Condition of the Home
If your home is on the older side, your realtor may suggest making a few upgrades before putting it on the market. It’s important to be prepared for this additional expense. Focus on low-cost upgrades that will have the most significant effect on your property value. Sometimes, all it takes is a fresh coat of paint and some modern cabinet hardware to breathe new life into an outdated building. If, on the other hand, your home has some serious structural issues, you may need to budget for major repairs. Repairing big-ticket items like your roof and HVAC system can really cut into your home sale profits. Keep this in mind before selling to ensure you will get the money you need to fund your stay in assisted living.
Deciding to sell your home isn’t easy, especially if you’ve lived there for a long time. Try not to rush this emotional decision. If possible, wait to sell your home until after you’ve made the transition into assisted living and the whirlwind of moving has settled. Feel free to reach out to us at 949-713-3931 to discuss your particular situation and get your housing plans in motion.