Tax Issues of sale of Estate property of an elderly relative

[Lori H.]

My Grandmother owns a home near Issaquah, Washington. She has owned it 50+ years and is now going to move into a care facility because of her health issues. She has rented out the home to family members for 1 year and now is considering selling it to pay for her care. The property is in an area of exceptionally high property values but is in need of updates. What are the tax issues of her selling it at this point and is there a better plan than selling?