At 79, should I sell my home to pay for care?

Direct answer

With $220,000 in savings, the example covers about 29.6 months of a $7,000 assisted-living cost when costs rise 5% each year. Forty-four paid home-care hours each week, plus $2,500 in assumed household costs, means the savings last less time to about 22.9 months. Selling the $850,000 home could add substantial cash, but only after a mortgage, sale costs, taxes, and moving expenses. The better choice turns on the care plan and actual net proceeds.

The existing long-term care guide for a couple with $800,000 covers a different decision. This page focuses on one 79-year-old, the home sale, and the cost of two care settings.

The example household

This example assumes no pension or Social Security income offsets these costs. It assumes the $220,000 is available for care. It also assumes the person can safely receive 44 hours of paid care at home. A clinician or care manager must assess whether those hours meet the person's needs.

What the two care prices include

The $7,000 assisted-living amount is the household's example quote. It is not a national average. CareScout's 2025 Cost of Care Survey reported a national median of $6,200 per month for assisted living. It reported $35 per hour for nonmedical in-home care and modeled 44 caregiver hours each week. The survey was released on March 2, 2026, using 2025 provider data. See CareScout's 2025 survey results, checked October 27, 2026.

The example quote is $800 per month above that survey median. If the prices covered the same services for a full year, the difference would be $9,600. They may not cover the same care or come from the same location. Use the survey as context, then compare a current written quote from the person's area.

At $35 per hour, 44 hours each week costs $80,080 per year. That averages about $6,673 per month. Add the example's $2,500 of monthly household costs, and the home scenario totals about $9,173 per month.

The two prices do not buy identical care. The $44-hours-per-week schedule leaves 124 hours each week without paid caregiver coverage. Family, friends, or another paid provider would need to cover those hours if the person needs more support. The assisted-living quote may include room and meals, but facility services and add-on fees vary. Get a written list of what each option includes before comparing costs.

Medicare generally does not pay for ongoing personal care, such as help with bathing or dressing at home or in an assisted-living setting. It can cover certain part-time or intermittent home-health services for eligible people. Medicare does not cover 24-hour home care or personal care when that is the only service needed. See Medicare's long-term care coverage and home health services, checked October 27, 2026.

The monthly comparison

At these assumptions, the home option costs about $2,173 more each month. Over 36 months with a modeled 5% annual increase, the assisted-living costs total about $270,825. Home care plus household costs total about $354,910. The difference is about $84,085. These figures use the assumptions shown above and do not predict future prices.

The $2,500 home amount is an invented example, not this person's actual bills or a local average. It might include property tax, utilities, meals, maintenance, and insurance. A mortgage or major repair would add cost. A paid-off home could reduce some monthly expenses. Replace this input with bank statements and bills.

If regular income helps pay the bill

The main estimate assumes the $220,000 savings account pays the full monthly amount. Many retirees also have Social Security, a pension, or other reliable income. The question does not say how much is available after ordinary bills, so the article does not count it in the main result.

Suppose $4,000 each month remains after other household bills and can go toward care. At a flat $7,000 assisted-living price, savings would cover the remaining $3,000 per month. The $220,000 reserve would then cover about 73.3 months, before cost increases or investment changes.

For the home scenario, the same $4,000 leaves about $5,173 each month for savings to cover. That uses the $6,673 care cost plus $2,500 of home costs, less the assumed income. The $220,000 reserve would last about 42.5 months at flat costs. These estimates use flat prices and do not predict future costs.

Do not count the whole Social Security or pension check as available for care. First subtract the expenses that continue, such as food, utilities, taxes, health costs, transportation, and debt payments. If the person has a spouse at home, that spouse still needs money for their own bills. The relevant input is the amount left after those commitments.

How long does the savings last?

If the $220,000 savings paid only the care costs, a constant $7,000 monthly assisted-living bill would use it in about 31.4 months. With the example's 5% annual cost increase, the cash runs out in about 29.6 months.

At home, the 44-hour care schedule costs about $6,673 per month. Add $2,500 in other home expenses, and total modeled spending is about $9,173 per month. With the same 5% annual increase, the $220,000 savings last about 22.9 months.

Here, “how long savings last” means how many months the $220,000 could cover the modeled costs. It does not mean the person will run out of all money. The calculation excludes investment returns, taxes, home upkeep after sale, pensions, Social Security, family help, insurance, and other living costs. It cannot predict lifespan or future health needs.

What could a home sale add?

The $850,000 home value is not the same as cash in the bank. The example assumes a $50,000 total for sale preparation and transaction costs and no mortgage payoff. Under those assumptions, estimated cash left after the mortgage and sale costs is $800,000. Add $220,000 of savings, and the modeled pool becomes $1,020,000.

At a starting $7,000 monthly assisted-living cost, with costs increasing 5% a year, that pool lasts about 114.6 months, or 9.6 years. This is an estimate from the stated assumptions. An actual sale price, mortgage statement, property condition, and transaction costs could change the result by a large amount.

The $50,000 is an invented example, not a typical cost estimate. Ask a real-estate professional for a written estimate of the money left after the sale, mortgage payoff, and costs. Add inspection, repair, moving, and tax costs. If the home has a mortgage, subtract the payoff too. Do not use the entire sale price as spendable money.

Taxes may apply to the home's profit, not the full sale price. IRS Publication 523 says an eligible homeowner may exclude up to $250,000 of gain, or up to $500,000 for many married couples filing jointly, if the tests are met. The owner generally must meet the two-year ownership and use tests during the five years before the sale. See the IRS Publication 523, checked October 27, 2026. The household's tax basis, filing status, prior home sales, and ownership history are unknown, so this article does not estimate taxable gain.

The timing also matters. A family may need to pay for care while it prepares, lists, and closes the home sale. The sale proceeds are not available until the buyer pays and the closing costs are known. During that time, the owner may still pay utilities, insurance, property costs, and repairs. This example assumes the sale happens immediately. It does not model a delay or the extra costs of carrying the house.

Before listing, ask whether anyone else has a legal or practical reason to remain in the home. A spouse, co-owner, tenant, or family caregiver can change the move date and the money available. Confirm who owns the property, who can sign the sale papers, and where the person will receive care after the move. If another household member depends on the home, include that person's housing needs in the plan.

Compare a written home-care plan with a facility quote

A phone estimate is not enough for either setting. Ask each provider to list the basic monthly amount, the care tasks it covers, and the events that raise the price. A facility may charge more after a move-in assessment or when the resident needs memory support, medication help, or transfers. A home-care agency may set minimum shifts, weekend rates, or a different rate for overnight help.

For care at home, ask who fills a shift when the regular caregiver is sick. Ask whether the quote includes an agency's payroll costs and insurance. Confirm whether the family must pay for a home modification, transportation, meals, or a second caregiver. Write down which hours family members will cover without pay. Those hours still have a cost in time and may not be available every week.

For assisted living, ask for a list of included services and a current sample invoice. Ask what happens when the person needs more help. Find out whether the $7,000 quote covers the apartment, meals, medication support, and help with daily activities. A low starting price may rise as care needs change. Compare a realistic monthly bill, not only the first advertised amount.

Finally, ask a clinician or licensed care manager whether both settings can meet the person's needs. The lowest priced option is not useful if it leaves a health or safety need uncovered. A home-care schedule and an assisted-living package may provide different supervision, access to staff, meals, and backup support. The family's written care plan should match the services in each quote.

Where is the home-care break-even?

At $35 per hour and $2,500 of other monthly home costs, about 29.7 paid care hours each week bring the home total to roughly $7,000 a month. That matches the example assisted-living quote on cost alone. The formula is:

(assisted-living quote − other monthly home costs) × 12 ÷ ($35 hourly rate × 52 weeks)

This finds when the two options cost about the same. It does not show whether they provide the same amount of care. Thirty paid hours may not cover overnight supervision, memory care, transfers, or unsafe periods alone. A person's care needs can make assisted living, a different home schedule, adult day services, or family help necessary even when one option looks cheaper on paper.

These changes could make the other option cost less: a different assisted-living quote, more paid care hours, major repairs, or a spouse staying in the home. A second resident also changes the meaning of “sell the home.” The family should get a care assessment and a local written price for each setting before choosing.

Common mistakes and their cost

Comparing $7,000 with $6,673 and stopping there. The home figure buys 44 caregiver hours each week. It does not include the $2,500 assumed household cost or overnight supervision. Those omissions make the home choice look about $2,827 cheaper than it is in this example.

Treating 44 hours as full-time care. Forty-four hours leave 124 hours each week without that paid caregiver. If family members cannot provide the other hours, the household needs another schedule and another price.

Assuming Medicare pays the long-term bill. Medicare generally does not cover ongoing personal care, such as help with bathing or dressing. A family that budgets $0 for this cost could face the full private bill. Check eligibility for Medicaid or other local support with a qualified benefits adviser; rules vary by state.

Spending the $850,000 sale price in the plan. The example subtracts $50,000 in assumed costs and a $0 mortgage, leaving $800,000. A mortgage or larger sale costs reduce that amount dollar for dollar.

Ignoring cost increases. The 5% increase is an assumption, but even a planning assumption changes the example: $220,000 covers 31.4 months at a flat $7,000, or about 29.6 months with the increase.

Assuming the house can be sold without checking the tax basis. The home-sale exclusion applies to eligible gain, not the gross sale price. A missing basis record can make a tax estimate unreliable.

A dated checklist

1. This week: request a care needs assessment from the primary doctor or a licensed care manager. Write down the hours, overnight needs, medication help, and safety concerns.
2. Before touring facilities: ask each assisted-living provider for a written quote. Separate the base fee from medication support, memory care, meals, move-in costs, and future care increases.
3. Before hiring at home: ask two licensed agencies for schedules and complete prices. Confirm minimum shifts, weekend rates, overtime, backup staffing, and who pays employer taxes.
4. Before deciding to sell: ask the mortgage servicer for a payoff statement and request a written estimate of the money left after the sale, mortgage payoff, and costs. Add repairs, moving, tax advice, and temporary housing.
5. Before listing the home: find the original purchase records and improvement receipts. Ask a CPA whether the home-sale gain exclusion applies to the household.
6. Every three months after care starts: compare actual care hours, bills, and savings with the plan. Rework the estimate when the person's needs or costs change.

When to talk with a professional

Talk with a geriatric care manager or licensed clinician about the level of care. Talk with a CPA about home-sale gain and the tax records. Talk with an elder-law attorney if a spouse remains in the home, Medicaid might be needed, or another person owns part of the property.

Bring the care assessment, medication list, recent bills, income statements, insurance policies, home deed, mortgage statement, home purchase records, and any agency or facility quote. Ask each provider to state what the price includes and which services cost extra.

This example does not decide whether the person should leave home. Cost is one input. Safety, choice, family capacity, and the care actually available at each location matter too.

Sources and as-of dates

• CareScout, 2025 Cost of Care Survey results, released March 2, 2026 and checked October 27, 2026. Survey data for assisted living and hourly in-home caregiver costs.
• Medicare.gov, Long-term care coverage, checked October 27, 2026. Medicare's general coverage limits for ongoing personal care.
• Medicare.gov, Home health services, checked October 27, 2026. Eligibility and service limits for home health.
• Internal Revenue Service, Publication 523: Selling Your Home, checked October 27, 2026. Home-sale gain, exclusion, and ownership/use tests.

All home costs, sale costs, mortgage balance, and 5% annual cost increases are assumptions. The article does not estimate an individual's taxes, care needs, or money left after the mortgage and sale costs.