Cost of Selling House for Care Calculator

Last updated July 2, 2026

For many older adults, the family home is the largest financial asset — and selling it to fund long-term care is a decision that involves significant transaction costs, tax considerations, and opportunity costs that a simple sale price doesn't capture. Real estate agent commissions typically run 5 to 6 percent of the sale price. Closing costs, preparation expenses, and repairs or staging add another 1 to 3 percent. Capital gains taxes may apply if the gain exceeds the $250,000 exclusion for single filers or $500,000 for married couples filing jointly. For a home with significant appreciation, the net proceeds after all transaction costs can be meaningfully lower than the headline sale price — sometimes by $30,000 to $60,000 on a moderately priced home.

The opportunity cost question is whether selling and investing the proceeds generates more income than retaining the home in some form — renting it, for example, if the cash flow covers care costs — or whether the tax and transaction cost drag makes selling and investing the better choice. For families considering a Medicaid application in the near future, the timing of a home sale relative to Medicaid's look-back period — five years under federal rules — matters enormously, as gifting proceeds could trigger penalty periods. Elder law attorneys who specialize in Medicaid planning can often identify strategies that protect some home equity while still qualifying for benefits, making professional advice on this decision highly cost-effective.

The net proceeds from selling a home for care purposes are typically 7 to 10 percent less than the sale price after all transaction costs. Calculate the actual after-cost, after-tax net before making plans based on the headline value. If Medicaid is a near-term possibility, consult an elder law attorney before making any significant asset transfers or sale decisions — the five-year look-back period makes timing critical.