Medicaid and selling mom's house. Do we have to get a private appraisal?

We sold my mom’s house this past August & she will be applying for Medicaid in months. Realtor appraisal was $13,000 below what a bank approved Appraiser stated. The appraisal cost us $400 so that was very well spent money. House had gold kitchen countertops, tiny bathrooms but in a highly sought after school district.

Cheryl, when it was time to sell my Dad's house, it was "as is" as when one walked into the house they stepped back into time :P So I knew I couldn't get today's value on the house even though the house was in good shape just not "modern" [gasp, no granite kitchen counter tops or stainless steel appliances !!].

I had a Licensed Appraiser give me what he thought would be a good asking price on the house. It took him time, as he had to value the house if it had all the updating, then subtract the "cost" for remodeling the kitchen, new flooring throughout, new windows, tear down a leaking tiny sun room, etc.

The house was sold to a flipper who was happy with the price he paid, and my Dad was happy with the price he got. So it was a win-win.

As for Medicaid, it would be best to give Medicaid a call to see how your State handles the selling of the house. If you sell "too low", Medicaid may think your Mom "gifted" the house to the neighbor by letting the neighbor buy it below "as is" value. Better to play it safe.

Get photographs.

I am in similar boat. My mom owned a house in very rural Arkansas. She had not kept up with the house. Foliage growing in the house. Mold all over one wall in kitchen. A part of wall coming down and exposed to elements. Like outside coming in. Dry rot and termite damage. Active termites.

Was listed at 19,900. We sold for 10. That was 5 k more than first offer at 5k. We had realtor write up a statement of the market in that very depressed area and of the house. With all its issues.
Just a suggestion.