Should You Sell Your Home Before or After Moving to a Senior Living Community?

One of the first questions we get from clients moving into a senior living community is about timing: do you sell first, move first, or try to do both at the same time? There's no single right answer, but there is a process, and we want to walk you through how we handle it.

The Most Common Path

For most of our clients, the answer is simpler than people expect. We sell the home and build in a delayed possession for the buyer, essentially a leaseback. That lets you close on your sale, lock in your numbers, and still have a window to move. HELOCs come up as a way to access some equity before the sale closes, but if you're not already in a cash position, we always recommend talking to a lender first so you know what's realistic for your situation.

What Communities Expect From You

Yes, most Salt Lake-area retirement communities require proof of funds or a signed home-sale contract before move-in, and they typically ask for a deposit when the contract is signed. Every community handles this a little differently, so this isn't something you need to figure out alone. We walk clients through exactly what their specific community requires.

Coordinating Two Timelines at Once

Every contract is different, and so are every client's priorities. Sometimes a buyer wants to occupy the home as soon as possible, and sometimes we build in a delay. What matters is that you know all your options and that we walk through the terms together. For some clients, the priority is a clean, concurrent move. For others, it's maximizing the financial reward by being flexible with the buyer's timeline. Either is a valid priority; we just need to know which one matters more to you.

A Real Example

We had a client moving from Park City to Springhouse Village in Daybreak. We built in five days after his closing so he could move into his new Daybreak home. That kind of flexibility is normal, and it's exactly the sort of thing we negotiate for regularly.

Don't Forget the Tax Piece

If the home has been your primary residence, you may be able to exclude up to $250,000 of gain if you're single, or up to $500,000 if you're married filing jointly, generally as long as you've owned and lived in the home for at least two of the last five years. Lawmakers have discussed raising those thresholds, but nothing has changed yet. We always recommend consulting a tax professional about your specific situation before making any big assumptions.

One Local Pitfall to Know About

Homes in age-restricted 55+ communities can take a little longer to sell because the buyer pool is smaller. Buyers also tend to take more time to decide, since they need to learn a community's rules and restrictions before going under contract. It's worth building that into your expectations from the start.

The Bottom Line

There's a real process behind this decision, and you don't have to figure out the sequence on your own. Reach out, and we'll walk through your specific situation, your timeline, and what sequencing actually makes sense for you.