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Selling a Home to Pay for Assisted Living in Colorado: Sell First or Move First, and the Medicaid Rule

Assisted living in Colorado runs $5,000 to $8,500 a month. Here is how heirs and caregivers sell the house to fund it, in what order, how fast it can close, and the Medicaid look-back and estate-recovery rules that decide what to do with the money.

A live person answers. Not a robot, not a phone tree.

The short answer

Move first, then sell, unless the home is already empty. An occupied home with a lifetime of belongings does not show; once your parent is settled, the house can be cleared, cleaned and listed, and a Denver-metro home priced right sells in about 53 days. If care has to be paid for this month, an as-is sale closes in two to three weeks at a lower price, and a bridge loan or a home equity line can cover the gap without giving the house away. The money question underneath all of it is Medicaid: gifts or below-market transfers in the five years before an application trigger a penalty, and after death the state can recover care costs from the estate, including the house.

Assisted living, Colorado

$5,000 to $8,500

a month in 2026

Memory care runs higher.

Independent living

about $2,800 to $3,100

a month

No personal care included.

Move cost

$4,000 to $12,000

with a senior move manager

Most seniors shed 50% to 80% of belongings.

Medicaid look-back

5 years

on gifts and transfers

Asset limit about $2,000; estate recovery after death.

Monthly cost of care in Colorado, 2026Independent living$2,800 to $3,100Assisted living$5,000 to $8,500Memory care$7,000 to $10,000CCRC (after entrance fee)about $4,000 all-inA paid-off $600,000 home funds about 7 years of assisted living at today's prices.

Sell first or move first?

Move first, then sellSell first
PriceHigher: cleared, cleaned, stagedLower: shown occupied or sold as-is
SpeedList 2 to 4 weeks after the move; close 30 to 60 days laterAs-is offers close in 2 to 3 weeks
Cash gapBridge loan, HELOC or family covers 2 to 4 monthsNone
Stress on your parentLow: one move, no showingsHigh: showings while living there

The 30-day path when the money is needed now

  1. Get a written value today. The Smart Pricing Report sets the number every decision uses.
  2. Open a home equity line or bridge loan against the house in your parent's name with their power of attorney; it funds the first months of care and the clean-out.
  3. Move your parent, then clear the house. A senior move manager handles the sort, the donation and the estate sale.
  4. List it priced to the last 30 days of sales. Ready homes go under contract in two to three weeks in most Front Range cities.
  5. Close, pay off the line, fund the care account.

Power of attorney, capacity and who can sign

A durable financial power of attorney lets you sign the listing and the deed. Without one, and if your parent can no longer sign, the sale needs a conservatorship from the court, which adds two to three months. If your parent can still sign, do the power of attorney now, before the move.

Medicaid: the rules that decide what to do with the proceeds

  • Look-back. Health First Colorado reviews five years of transfers. Selling the house at market value is fine. Gifting it, or selling it to a child for less than it is worth, creates a penalty period with no coverage.
  • Asset limit. About $2,000 for a single applicant. Proceeds in the bank count. Spending them on care, a prepaid funeral, or the home of a spouse who still lives there is allowed; spending them on gifts is not.
  • Estate recovery. After death the state can claim reimbursement for care it paid from the estate, including a home that was kept. Selling and paying privately avoids that claim on the house.
  • The spouse at home. A community spouse keeps the house and a protected share of assets. Do not sell a home a spouse still lives in without advice.

These are the rules as they work in practice; an elder-law attorney confirms them for your situation, and we work with several.

Taxes on the sale

Your parent keeps the $250,000 primary-residence exclusion ($500,000 married) if they lived in the home two of the last five years, and time in a care facility counts if they were incapable of self-care. Above that, the gain is taxed. The senior property tax exemption survives a move to assisted living as long as the home is not sold; once sold, it ends.

Where your parent lands next

kennarealestate.com · free guide

The Colorado
Care-Funding Worksheet

Sell first or move first, the 30-day path, the power-of-attorney checklist and the Medicaid rules on one sheet

The simple answer

Move first, then sell, unless the home is already empty. A home equity line or bridge loan covers the first months of care. Selling at market value is fine for Medicaid; gifting the house or selling it cheap to a child is a penalty.

Prepared by
KENNA REAL ESTATE GROUP
Call or text 303-955-4220 · A live person answers.

Kenna Real Estate GroupPage 1 of 9

Sample from page 3: Move first, then sell: side by side

  • Price: move first is higher (cleared, cleaned, staged). Sell first is lower (shown occupied or as-is).
  • Speed: move first lists 2 to 4 weeks after the move and closes 30 to 60 days later. As-is offers close in 2 to 3 weeks.
  • Cash gap: move first needs a bridge for 2 to 4 months. Sell first needs none.
  • Stress on your parent: move first is one move and no showings.
The rest arrives by email

Get the Colorado care-funding worksheet

9 pages · PDF · free · emailed the same day · in your inbox within a minute

Name, email, phone, and the PDF is in your inbox within a minute. A live person follows up once. Want to see more first? Open the guide page, or call or text 303-955-4220.
What is inside (8 sections)
  • 1Move first or sell first
  • 2What care costs in Colorado in 2026
  • 3The bridge: paying for the first months
  • 4Who can sign
  • 5The Medicaid page
  • 6The 30-day path
  • 7The worksheet
  • 8The checklist, and who to call

Related guides

Need the house sold on a care deadline?

Call or text 303-955-4220. A live person answers, sends the valuation the same day, and lines up the move manager, the clean-out and the listing.

Call or text 303-955-4220Get the home value

Questions people ask

Should we sell the house before or after moving a parent to assisted living?

After, in most cases. An empty, cleaned home sells for more and spares your parent the showings. Use a home equity line or bridge loan to cover the first months of care.

How much does assisted living cost in Colorado in 2026?

About $5,000 to $8,500 a month depending on city and level of care; memory care runs higher. Independent living is about $2,800 to $3,100 a month.

Can Medicaid take my parent's house in Colorado?

After death the state can recover care costs from the estate, including a home that was kept. Selling at market value and paying for care privately avoids that claim. Gifting the house within five years of applying triggers a penalty.

How fast can we sell a house to pay for care?

An as-is sale closes in two to three weeks. A cleaned, listed home in the Denver metro goes under contract in about two to three weeks and closes 30 days later.

Who can sign the sale if my parent has dementia?

The agent under a durable financial power of attorney. Without one, a court conservatorship is required, which adds two to three months.

Does the senior property tax exemption continue in assisted living?

Yes, as long as the home is not sold and the senior still owns it. It ends when the home sells.

Get the care-funding worksheet or ask about a sale on a deadline

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