How Do People Afford to Live in Assisted Living?

One of the most common questions families ask when a parent can no longer safely live at home is a very practical one:

How are we going to afford assisted living?

In my experience working with seniors and their families, the answer is often more complicated than simply looking at how much money Mom or Dad has in the bank.

Many families I meet aren't necessarily out of assets. They're out of cash.

There can be substantial equity sitting in Mom or Dad's home, but that doesn't help when the family needs money today to pay for senior living, moving expenses, furniture, and everything else required to make a transition.

That gap between having wealth and having access to it is one of the reasons we created Move Mom First.

Why Families Can Run Out of Money Before Assisted Living

One of the biggest financial challenges I see occurs when a family has been paying for in-home care for years.

In-home care can become extremely expensive, particularly as a parent's needs increase. Families may begin using savings, retirement funds, or even borrowing against the home to keep Mom or Dad living there.

And sometimes a parent simply lives much longer than the family financially planned for.

I am currently working with a family facing exactly this situation.

A son has been caring for his 95-year-old mother. Over the past five years, the family has spent approximately $500,000 on in-home care. They even took out a home equity loan to help pay those expenses.

She lived longer than they anticipated, which of course is a blessing. Financially, however, it created a challenge they hadn't expected.

They have now exhausted their available funds.

Mom needs to transition out of the home, and the family is considering the appropriate next level of care.

Here's what's important: they still have significant equity in the home.

Their problem isn't necessarily a lack of assets. Their problem is accessing those assets quickly enough to make the move.

Assisted Living May Be More Affordable Than Families Expect

Families should explore all of the care options appropriate for their parent's needs rather than automatically assuming one type of care will be less expensive.

Depending on the person's required level of care and the communities being considered, assisted living or memory care may be less expensive than nursing home care.

That's exactly what happened with the family I described above.

The mother was assessed and approved for memory care. In the options the family is considering, memory care is actually less costly than nursing home care.

That doesn't mean memory care or assisted living is always the right choice—or always less expensive. The appropriate option depends on the individual's medical, cognitive, safety, and personal care needs.

We aren't the people who make that determination.

We are real estate professionals who specialize in helping families navigate the housing and logistical side of a senior transition. We have a bird's-eye view of the process and can help families identify the types of professionals and resources they may need.

Most importantly, our service is agnostic about where a family decides their loved one should live.

The family's care decision comes first.

The Problem With Having Equity but No Cash

Imagine Mom owns a home with substantial equity but has very little money remaining in her bank account.

The family may know that selling the house will eventually provide the money needed for senior living.

But "eventually" doesn't solve today's problem.

The family may need money now for:

• The first several months of assisted living or memory care
• Moving expenses
• Packing and downsizing
• Furniture for the new residence
• Other incidental expenses associated with the move

Meanwhile, selling a home properly takes time.

This creates a difficult situation. Families can feel pressured to sell the house first simply because they need the proceeds.

I believe that sequence can add unnecessary stress to an already emotional situation.

Whenever possible, I would rather help the family move Mom first and sell the house afterward.

How Move Mom First Works

Move Mom First is designed to help qualified homeowners access funding for the transition before their home is sold.

The process begins when the homeowner enters into a private listing agreement with Compass, with Compass serving as the exclusive listing real estate brokerage.

Importantly, a private listing does not mean the family immediately has to put the property on the Multiple Listing Service.

That can give the family time to make plans and concentrate on Mom or Dad's move before worrying about publicly marketing the house.

Once the listing agreement and required disclosures are signed, the client can apply for Compass Concierge funding.

I don't simply hand the family an application and tell them to figure it out.

I sit with them, help them apply, and work with them through the funding process.

As of this writing in September 2026, clients can apply for up to $25,000 through the program.

Beginning October 1, 2026, the program's funding limit is scheduled to increase to up to 10% of the value of the home, with a maximum of $75,000.

Eligibility and actual funding are subject to the program's requirements and approval.

What Can the Money Be Used For?

For families who qualify, the funding can help bridge the period between deciding that Mom needs to move and eventually selling the house.

Depending on the family's needs, those funds can help cover expenses associated with making the transition, including senior living and moving-related costs.

We've structured Move Mom First around a simple concept:

Get Mom into a safer, healthier living situation first. Then deal with selling the house.

For some families, the available funding may be enough to cover up to four months of assisted living expenses, along with moving costs and incidentals such as furniture, depending on their costs and approved funding amount.

Instead of asking, "How can we possibly move Mom before we sell the house?" we want families to understand that there may be a way to bridge that financial gap.

When Does the Family Pay the Money Back?

One of the most important features for families experiencing a cash crunch is that there are no payments in between receiving the funding and the closing of the home sale.

The financing is reimbursed at closing.

Everything is settled through the attorney as part of the closing process.

For the families we work with, that's important because requiring another monthly payment would defeat much of the purpose. These families are often coming to us precisely because their liquid funds have been depleted.

The goal is to use the value already sitting in the home to facilitate the transition without creating another immediate monthly obligation.

Why I Believe Families Should Talk to the Right Realtor Early

When a son or daughter is lying awake at night worrying about Mom or Dad, they often don't know where to start.

There are senior living communities, nursing facilities, memory care communities, elder law attorneys, financial professionals, movers, downsizers and other specialists.

It can be overwhelming.

I think one of the first conversations should be with a Realtor who has genuine experience working with assisted living and senior transitions.

That doesn't mean the Realtor should pretend to be an expert in everything.

We're not medical professionals, and we're not necessarily experts on the care provided by each individual assisted living, memory care or nursing facility.

But because we work within this world, we have a valuable bird's-eye view.

We understand the real estate component, we understand how the transition typically unfolds, and we know the types of professionals families can turn to when they need more specialized guidance.

Sometimes the Money Is Already There—It's Just in the House

This is probably the most important lesson I want families to understand.

If Mom or Dad is running out of cash, don't automatically assume you've run out of options.

Look at the entire financial picture.

If there is significant equity in the home and the family intends to sell it, that equity may ultimately be what funds the next chapter of Mom or Dad's life.

The challenge is timing.

Traditional thinking says:

Sell the house. Get the money. Then move Mom.

I believe that for some families there is a better sequence:

Move Mom first. Sell later. Pay at closing.

Getting Mom or Dad into the appropriate safer, healthier environment can alleviate an enormous amount of pressure.

Once they're settled and comfortable, the family can turn its attention to the house.

In my experience, when you solve the immediate problem of getting Mom safely moved, everything else becomes much easier to tackle.

Frequently Asked Questions About Paying for Assisted Living

What if Mom has equity in her house but very little cash?

This is exactly the situation we frequently encounter. A parent can have substantial net worth tied up in a home while having very little liquid cash available for senior living and moving expenses.

If the family intends to sell the home, it's worth exploring whether that equity can help facilitate the transition rather than assuming Mom must remain at home until the property is sold.

Do we have to sell Mom's house before she can move into assisted living?

Not necessarily. Every family's financial circumstances are different, but this is precisely the problem Move Mom First is designed to address.

For qualified homeowners, funding can help cover the transition while the home is being prepared and sold, with reimbursement occurring at closing rather than requiring payments in between.

Does Move Mom First require us to choose a particular assisted living community?

No. Our service is agnostic about which community or care provider the family chooses.

Families should select the living arrangement that best meets their loved one's needs. We help with the real estate, funding and logistical side of the transition rather than deciding where Mom or Dad should receive care.

How much funding is available through Compass Concierge?

As of September 2026, clients can apply for up to $25,000.

Beginning October 1, 2026, the program's funding limit is scheduled to increase to up to 10% of the home's value, capped at $75,000. Funding is subject to eligibility, program requirements and approval.

What's the first thing I should do if we're running out of money for Mom's care?

Start exploring your options before the situation becomes a crisis.

If Mom or Dad owns a home with equity, I recommend speaking with a real estate professional who understands senior transitions and assisted living moves. At the same time, families should work with the appropriate care professionals to determine the level of care their loved one actually needs.

You don't need to have every answer before starting the conversation.

Sometimes the biggest realization for a family is simply discovering that there may be a way to move Mom first, sell the home later, and settle the expenses at closing.

If you're wondering how your family will afford the move, book a complimentary call. We'll look at the equity, the timeline, and the numbers — no pressure, no obligation.

Want this run against your parent's actual house?

Twenty minutes. No cost. We lay out the timeline, the scope, and the math — then you decide.