What Should You Do With Your Parents’ House When They Can No Longer Live There?

For many families, the decision about an aging parent’s home does not begin with a real estate conversation.

It begins with a life event.

Mom falls.

Dad has surgery.

One parent passes away.

Driving becomes difficult.

Stairs become unsafe.

Memory issues begin.

Or an adult child realizes that a parent can no longer safely maintain a home that may have worked perfectly for the previous 30 or 40 years.

Suddenly, the family is trying to make several major decisions at the same time.

Where will Mom or Dad live?

How will their care be paid for?

What happens to the house?

Should it be sold?

Should it be rented?

Does it need repairs?

What happens to everything inside?

Who actually has the authority to make decisions?

If your parents own a home in Chino, Chino Hills, the Inland Empire or Orange County, the most important thing may be getting those decisions in the correct order.

Do Not Start With the House

This may sound unusual coming from real estate professionals.

But the first question should not necessarily be:

“How much can we sell the house for?”

The first question should be:

“What does Mom or Dad need next?”

They may be:

• Moving into a single-story home
• Moving closer to children
• Moving into a multigenerational home
• Transitioning to assisted living
• Moving temporarily while recovering
• Staying with family
• Moving out of California
• Remaining at home with additional assistance

The housing decision should support the person’s needs—not the other way around.

Determine Who Can Legally Make Decisions

This is extremely important.

Who owns the property?

Is it held in a trust?

Are both parents on title?

Does someone have power of attorney?

Is a trustee involved?

Has one parent passed away?

Are several family members beneficiaries?

Different situations may require different documentation and professional advice.

Before signing listing agreements, repair contracts or other important documents, make sure the appropriate person has legal authority.

An estate-planning or elder-law attorney may need to answer those questions.

Understand the Financial Picture

Next, gather the basic financial information.

Determine:

• Approximate current home value
• Mortgage balance
• Monthly mortgage payment
• Property taxes
• Insurance
• HOA dues
• Utilities
• Maintenance
• Expected repair costs
• Available savings
• Cost of your parent’s next living arrangement

For some longtime Southern California homeowners, the home may represent one of their largest financial assets.

That equity could become an important part of funding the next stage of life.

Determine What the Home Is Worth in Its Current Condition

Before remodeling, obtain a realistic assessment of the property’s current value.

Many longtime family homes have deferred maintenance.

The kitchen may be dated.

Carpet may need replacement.

Paint may be old.

Landscaping may need work.

There may be decades of belongings inside.

That does not automatically mean the family should renovate.

First determine:

What would the home likely sell for today?

What might it sell for after improvements?

How much would those improvements cost?

How long would the work take?

What would the property cost to carry during that time?

Only then can the family compare the options intelligently.

Do Not Assume Every Repair Makes Money

This is one of the biggest mistakes families can make.

Suppose a home could sell for $800,000 in its current condition.

The family considers spending $100,000 updating it.

They believe the remodeled home might sell for $900,000.

That does not necessarily mean the family made $100,000.

They spent $100,000 to potentially gain $100,000.

And they may also have paid:

• Mortgage payments
• Property taxes
• Insurance
• Utilities
• Landscaping
• Contractor overruns
• Storage
• Travel
• Other carrying expenses

The correct number to compare is not simply the future sale price.

It is the estimated NET proceeds.

Sometimes a smaller group of strategic improvements may produce a better return than a major renovation.

Other times, selling the property largely in its current condition may make more sense.

Consider Selling the Home As-Is

Some families would rather avoid months of renovation.

Depending on the property’s condition and local buyer demand, selling largely as-is may make sense.

And selling as-is does not necessarily mean selling to an investor at a major discount.

An as-is property can still be exposed to the broader market so multiple types of buyers have an opportunity to consider it.

The goal is to determine which strategy produces the best combination of:

• Net proceeds
• Timeline
• Certainty
• Effort
• Risk

Every property is different.

The best decision should be based on the family’s circumstances and the actual numbers.

What Happens to Everything Inside the House?

This is often one of the most emotional parts of the transition.

A home occupied for decades can contain:

• Family photographs
• Furniture
• Important documents
• Clothing
• Tools
• Holiday decorations
• Collections
• Children’s belongings
• Items with sentimental value
• Items with financial value

Before removing or discarding anything, locate important legal, financial, property, insurance and estate-planning documents that may be inside the home.

Then take your time.

Do not try to resolve 30 or 40 years of belongings in one weekend.

Consider creating categories:

• Keep
• Family
• Sell
• Donate
• Discard
• Unsure

The Unsure category can be especially helpful.

Not every emotional decision needs to be made immediately.

Depending on the circumstances, families may also benefit from an organizer, senior move manager, estate-sale company or professional cleanout service.

What If You Live Far Away From Your Parents?

Sometimes the adult children trying to coordinate everything live in another city or state.

That creates another challenge.

Someone local may need to:

• Check the property
• Meet contractors
• Monitor utilities
• Coordinate landscapers
• Handle cleanout
• Meet estate-sale companies
• Arrange photography
• Manage repairs
• Prepare the home
• Coordinate showings
• Communicate with escrow

A local real estate professional can become the family’s boots on the ground while the decision-makers handle other responsibilities.

This can be especially valuable when several siblings or family members live in different areas.

Should You Rent the Property Instead?

Selling is not the only option.

Some families consider keeping the home as a rental.

Before doing so, calculate realistic numbers.

Include:

• Expected monthly rent
• Mortgage
• Property taxes
• Insurance
• Property management
• Repairs
• Maintenance
• Vacancy
• Landscaping
• HOA expenses
• Future capital improvements

Do not simply ask whether the rent will cover the mortgage.

Consider the complete financial picture.

Also ask whether owning a rental fits the parent’s overall financial and estate plan.

Speak with qualified tax, legal and financial professionals when appropriate.

What About Proposition 19?

California homeowners age 55 or older may qualify under Proposition 19 to transfer the taxable value of a qualifying principal residence to another qualifying principal residence within California, subject to specific requirements and calculations.

For longtime homeowners with a low property-tax basis, this can be an important consideration when deciding whether to downsize or move closer to family.

However, families should not assume a particular tax outcome.

Consult the appropriate county assessor and qualified tax professionals before making decisions based on Proposition 19.

Should Your Parents Buy Another Home Before Selling?

That depends on the family’s finances and situation.

Possible strategies may include:

• Selling first
• Buying first
• Coordinating both transactions
• Temporarily living with family
• Using temporary housing
• Negotiating additional occupancy after closing
• Moving first and selling the property vacant

There is no universal solution.

A parent’s health, finances, safety and comfort level may be more important than maximizing convenience in the real estate transaction.

Consider the Cost of Leaving the Home Vacant

Vacant properties still require attention.

Someone needs to check:

• HVAC
• Water
• Electrical systems
• Roof
• Irrigation
• Landscaping
• Pool
• Security
• Mail
• Pest activity
• Insurance

A minor problem can become expensive if nobody discovers it for several weeks.

Insurance companies may also have specific requirements for vacant properties.

Make sure the insurance carrier understands the home’s occupancy status.

Build the Right Professional Team

A family helping aging parents may need more than a real estate professional.

Depending on the circumstances, the team could include:

• Real estate professional
• Estate-planning attorney
• Elder-law attorney
• CPA
• Financial advisor
• Mortgage professional
• Senior move manager
• Estate-sale company
• Professional organizer
• Contractor
• Moving company
• Assisted-living advisor
• Home-care professional

Each professional should handle the part of the decision that falls within their expertise.

The goal is not to have one person trying to solve every problem.

It is to have the right people helping with the right decisions.

Alberto & Leticia’s Perspective

Over the years, one thing we have learned is that families facing this situation usually are not calling because they are excited about selling a house.

They are calling because something changed.

Mom or Dad needs help.

The family is overwhelmed.

There may be decades of belongings inside the home.

Siblings may live in different cities or states.

The property may have deferred maintenance.

And everyone is trying to determine what needs to happen next.

That is why our first priority is not putting a sign in the yard.

It is helping the family create a plan.

We want to understand what Mom or Dad needs, what condition the property is in, who is responsible for making decisions and what options are available.

Sometimes the best strategy is selling the property as-is.

Sometimes making a few strategic improvements makes sense.

Sometimes the family needs additional time before doing anything.

And sometimes selling is not the right answer yet.

Every family is different.

Our responsibility is to help simplify the real estate side of the transition, coordinate the local pieces when needed and provide the information families need to make informed decisions.

Frequently Asked Questions

Should we sell our parents’ home immediately after they move out?

Not necessarily. First understand their housing needs, financial situation, legal authority and the property’s condition. Then build the appropriate timeline.

Should we remodel the house before selling?

Only if the estimated improvement in net proceeds justifies the money, time and risk involved. Compare the expected as-is sale with the estimated net proceeds after improvements before spending significant money.

Can we sell our parents’ house as-is?

Often, yes. Whether that is the best option depends on the property’s condition, location, buyer demand and the family’s priorities. Selling as-is also does not necessarily mean selling only to an investor.

Can an adult child sell a parent’s house?

Only someone with appropriate legal authority can complete the transaction. Title, trusts, powers of attorney and other legal documents may affect who can act. Consult an attorney when necessary.

What if several siblings disagree about selling?

The answer depends on ownership and the family’s legal structure. A trustee, attorney or other appropriate professional may need to clarify decision-making authority.

Should we keep our parents’ house as a rental?

Possibly. Compare realistic rental income with property taxes, insurance, maintenance, management, vacancy and long-term financial goals before deciding.

What should we do if the house is full of belongings?

Start slowly. Locate important documents and identify sentimental or valuable belongings first. Then consider family distribution, donations, an estate sale and professional cleanout assistance.

Can my parents transfer their California property-tax basis when downsizing?

Eligible homeowners may have options under Proposition 19. Because eligibility and calculations depend on individual circumstances, consult the appropriate county assessor and qualified tax professionals.

Final Thoughts

When an aging parent can no longer safely remain in the family home, the real estate decision is usually only one part of a much bigger family transition.

Do not rush immediately to the question:

“How quickly can we sell the house?”

Start with:

What does Mom or Dad need?

Who can make decisions?

What is the financial picture?

What is the home worth today?

What needs to happen to the belongings?

Should repairs be made?

Should the property be sold or kept?

Then create a timeline.

The goal is not to make every decision today.

The goal is to make the decisions in the right order.

Not Sure What to Do With Mom or Dad’s House?

You do not need to have every answer before starting the conversation.

If Mom or Dad can no longer safely live in their home and your family is not sure what should happen next, contact Leticia & Alberto Sotomayor.

We can help you understand the property’s current value, compare selling as-is versus making repairs, coordinate local resources and create a practical real estate plan.

Our goal is not to pressure your family into selling. It is to help put the decisions in the right order so you can determine what is best for Mom, Dad and the home.