Did you know that there are restrictions that dictate whether you are eligible to sell your house on Medicaid? It’s true, but that doesn’t mean selling your house while on Medicaid is out of the question.
This article will run you through some of things you need to do know If you plan to sell your house while on Medicaid.
Sell or Stay?
When you are on Medicaid, the burden of maintaining your home may become too much for you to handle. Keeping up with taxes, insurance, utilities, and repairs can be costly. While you may initially want to do everything to stay in your home, it may become more reasonable for you to sell.
But selling your home may not be the easiest option to take. In order to qualify for Medicaid in most states, you are only allowed to have $2000 worth of assets. In most circumstances, selling your home would leave you with far more than $2000 in proceeds and, perhaps, jeopardize your Medicaid coverage. But there are ways to sell your home and make sure you stay within the Medicaid eligibility guidelines.
Plan in Advance
If you intend to sell your home while on Medicaid, make a plan of how you intend to use the proceeds once the sale is complete. You can work with an elder law attorney to protect your proceeds from your qualified assets. If the proceeds will be used for things that Medicaid doesn’t cover, like home care or additional therapies, you may be able to sell your home without impacting your coverage.
After the Sale
Once you sell your home while on Medicaid, you will need to spend down the excess assets to stay within the eligibility limit. You can use this money to pay off debt, purchase an irrevocable funeral trust, buy an annuity, or pay for long-term care. You can even use the cash to take a trip and still meet guidelines. Once the funds are spent down, you can reapply for Medicaid.
How to Sell Your House While on Medicaid
Once you’ve decided that you want to sell, there are some important steps you’ll need to take.
Get an Appraisal
When you are ready to sell your home, the best way to get started is to schedule an appraisal with a licensed real estate appraiser. A professional appraiser will look at your home, the current market trends in your area, and comparable property near you. They will compile this information to create an assessment of your home’s fair market value. Knowing the fair market value is essential for making sure your sale will qualify for a Medicaid asset exemption.
Get Your Home Ready to Show
If you plan to list your home with a real estate agent, you will need to prepare your home for showings. This includes a thorough deep clean, a complete decluttering process, and staging for online listings and for showings. You want your home to look brand new so your buyers can picture themselves living it as if it were already theirs.
Get an Offer & Closing
Ideally, you will receive several offers on your home and you will be able to choose the best one. The time from offer to closing can be lengthy, and there can be some bumps along the way like your buyer’s mortgage lender not approving your buyer for the full offer amount. This can leave you with the difficult decision of taking what your buyer is approved for and absorbing that lost profit or starting the process over with a new buyer.
Sell Your House While on Medicaid for Cash
One way to avoid a complicated listing process is to sell your home for cash. If you sell for cash, you will not have to worry about making repairs, showing your home, or spending time and money on the closing process. If you are working within time constraints to manage your Medicaid eligibility, selling your house for cash is the best option.
Sell Your House to Quick Fix Real Estate
If you’re ready to experience the quickest and easiest way to sell your house fast for cash, sell it for cash to Quick Fix Real Estate. Call us for a quick, no-obligation assessment and get a cash offer on the spot. Pick your closing date and deposit your check – it’s that simple. Contact us and get your cash offer today.