Selling Your Parents' Home When They Move Into Assisted Living or a Retirement Residence in Winnipeg

When a parent decides to leave their longtime home and move into assisted living, a retirement residence, a condominium, a life lease, or another type of supportive housing, the entire family can face a major transition.

There may be decades of belongings to sort through, moving arrangements to make, financial decisions to consider, and one important question:

What should we do with the family home?

For many Winnipeg families, selling the property becomes an important part of the transition. But selling a parent's home can be different from a typical real estate transaction, particularly when the home has been owned for decades, needs updating, or several family members are involved.

You do not need to have everything figured out before speaking with a REALTOR®.

This guide covers the important things to consider when selling your parents' home in Winnipeg and how to make the process more organized and manageable.

First: Who Has the Authority to Sell the Home?

Before discussing renovations, pricing, or listing the property, determine who legally owns the home and who has authority to make decisions about it.

If your parent owns the property and is capable of making their own decisions, they generally remain responsible for approving and signing the documents required to sell their home.

Being a son, daughter, or other family member does not automatically give someone authority to sell a parent's property.

If someone is acting under a Power of Attorney, the document should be reviewed to determine what authority it provides regarding the property and real estate transactions.

Situations involving joint ownership, questions about capacity, or other legal issues can be more complicated.

If there is any uncertainty, speak with a Manitoba lawyer before listing the property. Your REALTOR® can work with the lawyer as needed throughout the transaction.

Should Your Parent Move Before or After the Home Sells?

There is no single answer that works for every family.

Some parents prefer to remain in their home until it sells. This may help reduce the amount of time they are responsible for expenses at two residences.

Other families prefer to complete the move first and then prepare the house for sale.

Moving first can make decluttering, cleaning, repairs, photography and showings easier. It also means your parent does not have to deal with buyers coming through the property while they are still living there.

However, once a property becomes vacant or unoccupied, insurance and maintenance requirements may change.

Before leaving the home vacant, contact the insurance provider to discuss the change in occupancy and any requirements for maintaining coverage.

Get a Home Evaluation Before Spending Money

One of the most important steps is having the property evaluated before starting major renovations.

It is common for families to walk through an older home and think:

"We need to renovate everything before we can sell."

That may not be necessary.

A home owned for 30 or 40 years may have an older kitchen, dated bathrooms, worn flooring, older windows, wallpaper, or other features that today's buyers may eventually want to update.

But spending $30,000, $50,000 or more does not guarantee that the family will recover that money when the home sells.

Before renovating, consider:

• The property's approximate current market value
• Recent comparable sales in the neighbourhood
• Selling prices of renovated versus unrenovated homes
• The estimated cost of improvements
• How much those improvements could realistically affect the selling price
• How quickly the family wants to sell
• Who the likely buyer will be

Sometimes strategic cleaning, decluttering, painting and minor repairs can improve the home's presentation without requiring a major investment.

In other situations, selling as-is may make more sense.

Example: Renovate or Sell As-Is?

Imagine your parent owns an older Winnipeg bungalow that has been well maintained but still has its original kitchen, dated flooring and an older bathroom.

The family considers spending $40,000 renovating before listing.

Before starting the work, they compare recent sales.

Suppose similar homes in their current condition are selling around $350,000, while renovated homes are selling around $390,000.

Spending $40,000 to potentially increase the selling price by approximately $40,000 may not necessarily produce a financial benefit.

The family also needs to consider renovation time, carrying costs, unexpected construction expenses, the possibility of going over budget and whether buyers will value the renovations enough to pay the expected price.

In a situation like this, selling as-is could be the simpler and potentially more practical option.

These numbers are only an example. Every property and market situation is different, which is why obtaining a market evaluation before renovating can be valuable.

Could the Lot Have Development Value?

This is particularly important with older homes in established Winnipeg neighbourhoods.

Sometimes a property's value is not limited to the existing house.

Lot frontage, depth, zoning, location, access and potential redevelopment opportunities can make certain properties attractive to builders and investors.

Depending on the property and required municipal approvals, there could potentially be opportunities involving a new home, duplex, secondary suite, subdivision or multi-unit development.

Development possibilities should always be properly investigated and should never be assumed simply because another nearby property was redeveloped.

However, if the property could appeal to builders or investors, spending a significant amount renovating an older house before selling may not be the best strategy.

Understanding the likely buyer for the property should be part of the selling plan.

What Improvements Should You Consider?

Preparing an older home for sale does not necessarily require a complete renovation.

Depending on the property, relatively simple improvements may make a noticeable difference:

• Deep cleaning
• Decluttering
• Removing excess furniture
• Touching up damaged paint
• Improving lighting
• Fixing obvious minor defects
• Cleaning windows
• Tidying the yard
• Cutting grass or removing snow
• Making entrances and walkways presentable
• Removing unnecessary personal items

The goal is not necessarily to make an older home look brand new.

The goal is to present it properly so buyers can understand its condition, features and potential.

What If the Home Needs Major Repairs?

Some older homes have more significant issues such as an aging roof, older furnace, foundation concerns, water intrusion, outdated electrical systems, older plumbing or unfinished renovations.

These issues do not automatically mean everything needs to be repaired before selling.

There are buyers who specifically look for homes they can renovate.

Depending on the circumstances, the better strategy may be to understand the property's condition, price it accordingly and market it to the appropriate buyers.

Questions about disclosure obligations or significant property defects should be discussed with the appropriate real estate and legal professionals.

Sorting Through Decades of Belongings

For many families, dealing with the contents of the house is one of the most difficult parts of the process.

A longtime family home may contain decades of furniture, clothing, photographs, documents, tools, kitchenware, collectibles and family keepsakes.

Trying to deal with everything at once can quickly become overwhelming.

A practical approach is to divide belongings into categories:

• Items your parent will take
• Items family members want to keep
• Items to sell
• Items to donate
• Items to recycle or dispose of
• Important documents, photographs and valuables requiring special attention

You do not need to empty the entire property before asking a REALTOR® to visit.

An initial walkthrough and market evaluation can usually happen while the home is still occupied and full of belongings.

That conversation can actually help determine how much preparation is necessary.

What About Furniture Your Parent Doesn't Need?

Moving from a house into a smaller residence often means there will not be enough room for all the furniture and household items.

Depending on the quantity, condition and value of the belongings, families might consider:

• Giving items to relatives
• Selling items privately
• Holding an estate or contents sale
• Using an auction service
• Donating usable items
• Hiring a professional removal service

Before arranging bulk removal, make sure important documents, photographs, jewelry, collectibles and sentimental belongings have been identified.

What If There Is Still a Mortgage?

A home does not necessarily need to be mortgage-free before it can be sold.

If your parent still has a mortgage, the lawyer handling the transaction can generally arrange for the mortgage to be paid out from the sale proceeds as part of the closing process.

There may, however, be a mortgage prepayment penalty, discharge costs or other lender-related expenses.

Before listing, it can be helpful to contact the lender and ask about the approximate mortgage payout and any potential penalties.

If your parent plans to purchase another property rather than move into a retirement residence, they may also want to discuss financing and any mortgage portability options with their lender or mortgage professional.

Understand the Costs of Selling

The selling price is not necessarily the amount your parent will receive after closing.

Depending on the circumstances, expenses may include:

• REALTOR® fees
• Legal fees
• Mortgage payout
• Mortgage penalties or discharge costs
• Cleaning
• Contents or junk removal
• Moving expenses
• Repairs
• Property tax adjustments
• Utilities until possession
• Insurance
• Condo-related costs, if applicable

Understanding the expected expenses early can help the family estimate the approximate net proceeds from the sale.

Are There Tax Considerations?

Potentially.

The tax treatment of a property that has always been your parent's principal residence may be different from a rental property, investment property, or a home that was not always used as their principal residence.

Tax situations can vary significantly.

For advice regarding capital gains, principal residence rules or other tax matters, speak with a qualified accountant or tax professional.

Choosing the Next Home: Condo, Life Lease, Rental or Assisted Living?

Not every older homeowner moves directly from a house into assisted living.

Some simply want a smaller home with less maintenance.

Depending on your parent's needs and circumstances, options may include:

• Condominium
• Apartment
• Life lease
• Smaller bungalow
• 55+ community
• Independent retirement residence
• Assisted living
• Other supportive housing

When comparing options, consider more than just the purchase price or monthly rent.

There may also be condominium fees, life-lease fees, parking costs, utilities, meal plans, housekeeping, transportation and other services.

Accessibility is equally important.

Consider elevators, stairs, parking, proximity to family, shopping and medical services, as well as your parent's potential longer-term needs.

What If Several Family Members Are Helping?

When several children or relatives are involved, communication can become challenging.

It helps to determine early:

• Who will be the main contact with the REALTOR®
• Who will communicate with the lawyer
• Who will organize belongings
• Who will coordinate cleaning or repairs
• Who will provide access to the property
• How major decisions will be discussed within the family

Having one primary contact can make communication much easier.

However, the property's legal owner or properly authorized representative remains responsible for the decisions and signatures required for the transaction.

Selling a Vacant Home in Winnipeg

If your parent moves before the property sells, the home still needs regular attention.

This is particularly important during a Winnipeg winter.

Depending on the circumstances, this may include:

• Maintaining appropriate heat
• Checking the property regularly
• Removing snow
• Cutting grass
• Collecting mail
• Maintaining appropriate insurance
• Keeping sidewalks and walkways safe
• Checking for water leaks
• Keeping doors and windows secure
• Maintaining required utilities

A minor issue such as a leak or heating failure can become much more serious if a vacant property is not regularly checked.

Always confirm the insurance company's requirements for a vacant or unoccupied home.

How Is the Selling Price Determined?

If your parent purchased the property decades ago, the original purchase price may have little connection to its current market value.

Municipal assessments and online estimates can provide information, but they do not necessarily represent what buyers are willing to pay today.

A comparative market analysis typically considers factors such as:

• Recent comparable sales
• Current competing listings
• Neighbourhood
• Lot size and frontage
• Square footage
• Bedrooms and bathrooms
• Garage and parking
• Basement
• Renovations and updates
• Overall condition
• Location
• Buyer demand
• Potential redevelopment characteristics
• Current Winnipeg real estate market conditions

The goal is to establish a pricing and marketing strategy based on current market evidence.

Avoid Pricing the Home Based on Sentimental Value

Selling a longtime family home can understandably be emotional.

It may be where children grew up, birthdays and holidays were celebrated, grandchildren visited and decades of memories were created.

Those memories are meaningful to the family.

Buyers, however, will compare the property with other homes available in the Winnipeg market.

A successful pricing strategy needs to reflect the property's current market value rather than its sentimental value.

That does not diminish the importance of the home. It simply helps the family make an informed financial decision when it is time to sell.

A Simple Step-by-Step Plan

For many Winnipeg families, the process may look like this:

1. Confirm property ownership and who has authority to make decisions.

2. Determine where your parent will be moving.

3. Have a REALTOR® evaluate the existing home before renovating.

4. Review recent comparable sales and approximate market value.

5. Decide whether to sell as-is or complete selected improvements.

6. Begin sorting belongings and planning the move.

7. Speak with a Manitoba lawyer regarding legal questions.

8. Prepare the property for photography and showings.

9. Establish the pricing and marketing strategy.

10. Review offers and select the option that best fits your parent's circumstances.

11. Have the lawyer coordinate closing and any mortgage payout.

12. Complete the transition to your parent's new home.

Every family's circumstances are different, but having a clear plan can make the process much easier.

Don't Wait Until the House Is Empty to Ask for Advice

This is one of the most important things for families to understand.

You do not need to renovate the kitchen, replace all the flooring, paint the entire house, empty every room or spend thousands of dollars before asking a REALTOR® to look at the property.

In fact, it can be beneficial to have the home evaluated before major work begins.

An early walkthrough provides an opportunity to discuss the property's current value, recent comparable sales, likely buyers and whether particular improvements are actually worth the cost.

Sometimes a few inexpensive improvements may be recommended.

Sometimes cleaning and decluttering may be enough.

And sometimes selling the property in its current condition may be the better strategy.

The objective is not to spend the most money preparing the house.

It is to make informed decisions that make sense for the property and your parent's circumstances.

Thinking About Selling Your Parents' Home in Winnipeg?

If your parent is downsizing or moving into assisted living, a retirement residence, condominium, life lease or another housing arrangement, you may be dealing with several important decisions at once.

You do not need to prepare the entire house before asking for help.

I can visit the property, review recent comparable sales, provide an estimate of its current market value, discuss whether improvements may be worthwhile, identify the likely buyer market and help develop a practical selling strategy.

Whether the home is beautifully maintained, dated, vacant, full of belongings, in need of significant repairs or potentially attractive to a builder or investor, the first step can simply be understanding your options.

Contact me for a confidential, no-obligation home evaluation before spending money renovating or preparing your parents' Winnipeg home for sale.

Disclaimer: This article provides general real estate information only and is not legal, tax, financial, medical or estate-planning advice. Property ownership, Power of Attorney, capacity, taxation and other legal matters can vary by situation. Consult a qualified Manitoba lawyer, accountant, lender or other appropriate professional regarding your specific circumstances.