My dad passed away in September 2019. My mom's health and mental state has left her in a place where she really can't go back to their house and live. She really needs to live in either Assisted Living or even a nursing home at this point. She has no motivation to get better and it is taking a toll on me and my spouse as she is currently staying with us. The house is actually a mobile home on about 3 acres in a very rural part of Idaho. It was appraised about 5 years ago with a value of around $80,000. My mom doesn't really want to sell it because my dad loved the area and did a lot of custom work in the house. It is not on a foundation so it would be tough for someone to get financing for the house. I am trying to figure out if she can just transfer it into a trust or gift it to the kids (there are 5 of us)? How would that be viewed with Medicare/ Medicaid if she doesn't have the finances to support a nursing home? Can the kids buy it at fair market value? Can she sell it to the kids for less than fair market value? Is it just cleaner and easier to sell it outright? My parents did not plan for end of life very well and do not have much of an income so we are trying to do the right thing for everyone given the circumstances.
https://www.msn.com/en-us/money/markets/these-housing-markets-are-in-danger-of-a-coronavirus-related-recession/ar-BB122ePz?ocid=msedgntp
The article doesn't address your situation specifically but does provide insight into the real estate market these days.
An interesting observation is that people who might want to move may wait until the pandemic is over, especially if they want to move closer to family.
OTOH, 3 acres in rural Idaho might be a great bargain to someone who wants to farm.
I'm just suggesting that selling maybe a mix of factors, good or bad. Don't be discouraged though.
Do any of you REALLY want the property? Forget about the mobile home you can not get a mortgage on them it is a strait out loan and the age of the mobile home will have to do a lot with the value now.
If any of you REALLY want the property buy it. Fair Market Value.
The $$$ from the sale can be used for her care and when that runs out application for Medicaid will go easier.
I suggest you look for a facility that will also accept Medicaid after a person has been Private Pay for a while.
If none of you REALLY wants the property sell it. Again Fair Market Value.
To establish what the FMV is have at least 3 agents look at the property and the Mobile Home and give you their opinion as to what the value is.
In order to sell you are either going to have to get your moms approval and signatures or if she is not competent then whoever is her POA or Guardian will have to complete the sale. (at least legally) If she has not been "declared" incompetent you might be able to get her to sign papers but if she is questioned there might be problems if a lawyer decides that it isn't quite "kosher"
If your mom does not yet medically qualify to live in skilled nursing care, you will need money for an assisted living placement. Some states will help with assisted living costs. Many will not.
She can sell the land and house it to anyone she likes if it sells at fair market value. She may suffer a Medicaid penalty if it is sold below market value.