The Platinum Group, REALTORS®Weldon HobbsColorado Springs | REALTOR®
Veteran | USAFA
Downsizing & Life Transitions

Should I sell my Colorado Springs home before moving into senior living?

ByWeldon HobbsTeam Hobbs RealtyPublished Last reviewed

Short answer: Not necessarily. Selling first frees up your equity and avoids paying for two places at once, and in Colorado a post-closing occupancy agreement can let you stay up to 60 days after closing. Moving first lets you settle in and makes the empty house easier to prepare and show, but you carry both costs until it sells. The right order depends on what you want, what your finances allow, and what's safest for your health.

It starts with where you're going

It depends on your financial position and the market. Before deciding which comes first, I use the same sequence I use for every life transition, Life → Wealth → Real Estate™:

  1. Life: Where do you want to go, and when? Is the move driven by a health change that can't wait, or is it a planned step?
  2. Wealth: Can you afford to pay for senior living and keep the house for a while? If the numbers say no, that doesn't mean you have to stay put, but it helps you make an informed decision.
  3. Real estate: Then we choose the selling strategy that supports the first two.

What rules everything is what you want and what's best for you medically, financially, and in terms of risk. My job is to lay out the trade-offs of whichever path you choose.

If you're still deciding between types of communities, see the differences between 55+ communities, independent living, assisted living, and memory care. Buying in a 55+ community is a different decision from moving into a rental community, because you're buying another home.

Selling first vs. moving first

Sell first, then move Move first, then sell
Money Equity is available before the move; one set of housing costs You pay for senior living and the house until it sells
Daily life during the sale You live in the home through preparation and showings You're settled in your new place before the house goes on the market
Preparing the house Harder: sorting and staging around daily life Easier: the house can be cleared, staged, and shown on short notice
Timing Closing and move-in date have to line up The move can happen when it needs to
Main risk A tight gap between closing and move-in Carrying costs and an empty house

Selling first

Selling first is usually the lower-cost path. Once the house closes, the equity is available and you're no longer paying for two places. The challenge is timing. The closing and the move-in date have to line up, and you'll be living in the home while it's prepared and shown.

Colorado gives you one tool for the gap: the Post-Closing Occupancy Agreement, the state-approved "rent-back" form. It lets a seller stay after closing for up to 60 days; anything longer requires a residential lease. The buyer has to agree to it, so it's part of the negotiation. See staying in your home for a while after selling.

Before you commit, ask the community what starts the monthly fee, whether it requires a deposit, and how long it will hold an apartment.

Moving first

Moving first puts the move on your timeline instead of the buyer's. I worked with a couple whose home was in a more remote area. One spouse's health meant they couldn't afford to wait, and so much depended on where they were going and what they'd take with them. They decided moving out first was best, so they could get settled in their new place and then focus on selling the house.

An empty house is also easier to prepare. When it's empty, we can stage it with furniture you aren't taking and add to it, or stage the whole house. That helps with preparation, because sorting through decades of memories while you're still living with them can be overwhelming.

The trade-off is cost. Until the house sells, you're paying for senior living plus the mortgage (if any), property taxes, insurance, utilities, and upkeep on the house.

Covering the overlap

How you cover that overlap is your decision. I've seen adult children help, people who simply had the cash, and people who stayed in the home until it sold. Before choosing, it's worth knowing the full monthly cost of both places so you can see how many months the overlap would really cost you. For a way to lay that out, see the steps to downsizing.

Protecting an empty house while it's for sale in Colorado Springs

An empty house needs someone watching it. Here's what I do and what I recommend:

  • Regular walkthroughs to make sure it looks right and nothing has changed.
  • Electronic lockboxes, which let us track which agents go in and out. That can't account for keys we don't know about, so it helps to know who else has one.
  • A neighbor who can collect the mail and keep an eye on things.
  • Winter care: homes still sell here through the winter, and the main difference is making sure snow isn't tracked through the house during showings.

Homes sell with the right combination of price, preparation, and presentation, empty or not, and helping it present well is part of my job.

It's worth calling your insurance agent before the house sits empty. Many homeowners policies restrict some coverage once a home has been vacant for a set period, often 60 days, and the definition of "vacant" varies by policy. Your agent can tell you what your policy says and whether you need a vacancy endorsement or policy.

Colorado and El Paso County rules that affect the timing

  • The senior property tax exemption. If you receive Colorado's senior exemption, it can continue while you're living in a hospital, nursing home, or assisted living facility, as long as the house stays empty or only your spouse or a financial dependent lives there. Renting it out doesn't fit that exception. Independent living isn't on that list, so ask the El Paso County Assessor's Office how your move affects the exemption. By law, changes in ownership or occupancy must be reported to the assessor within 60 days. See what happens to property taxes when you downsize.
  • Capital gains. To exclude gain on the sale of a home, you generally need to have lived in it for two of the five years before the sale. If you become unable to care for yourself, time spent living in a licensed care facility counts toward that, as long as you lived in the home at least one of those five years. That can matter when the house sells a while after the move. See capital gains when selling a longtime home and confirm your situation with a CPA.
  • Medicaid. If Health First Colorado (Medicaid) may be needed for long-term care, how and when the home is sold, and what happens to the money, can affect eligibility. It's worth talking with an elder law attorney before you list.

How to decide

  • If a health change means the move can't wait, moving first is often the practical choice. It helps to plan how you'll cover the overlap before you go.
  • If you can comfortably afford both places for several months, moving first gives you an easier move and an easier sale.
  • If the sale proceeds are needed to pay for senior living, selling first, with a rent-back or a lined-up move-in date, keeps you from carrying two sets of costs.
  • If the house needs a lot of sorting and preparation, moving first usually makes that work easier.
  • If Medicaid, the senior exemption, or capital gains could be affected, it's worth getting advice on those first, because they can change which order makes sense.

If you're an adult child helping a parent, the parent is still the decision-maker unless someone holds legal authority to act for them. See how to help aging parents decide whether to stay or move.

What could change the answer

  • The market. When homes are selling slowly, the overlap can last longer than planned; when they sell quickly, selling first is easier to time.
  • The community's policies. Deposits, waitlists, and when the monthly fee begins all change the math.
  • The house. A home that needs significant repairs or clearing out may be easier to sell after the move.
  • Health. Care needs can change quickly and override the best financial plan.
  • Benefits and taxes. Medicaid, the senior exemption, and capital gains rules can each change which order is better.

When to talk with a professional

  • An elder law attorney if Medicaid may be needed or someone else is signing for the owner. See how to choose an elder law attorney.
  • A CPA about capital gains and the tax year of the sale.
  • A lender or financial professional about how to cover the overlap.
  • An insurance agent before the house is left empty.
  • The El Paso County Assessor's Office about the senior exemption.
  • A real estate professional to time the sale with the move and prepare the house. See who should be on a downsizing team.

If you're trying to decide whether to sell first or move first, let's talk it through. I can help you compare both paths against your move-in date, your costs, and the current market, and lay out the trade-offs so you can choose. If the move is to a community near family in another state, I can also help you find and personally vet a real estate professional there.

About the author

Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.

Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon

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