A move-up plan needs three separate estimates: possible net sale proceeds, the next home’s complete housing costs, and the timing of both transactions. Start with a Homes AVM report, then have the Realtor review pricing and sale expenses while the loan officer verifies the financing assumptions. Equity alone does not answer whether a move is affordable.
Why this question matters now
NAR’s 2026 Member Profile release identifies affordability as a major hurdle and describes the difference between repeat buyers with existing equity and first-time buyers building savings. For a homeowner considering a move, the useful question is how their property and financing position translate into a workable next purchase. NAR: 2026 Member Profile findings.
Step one: estimate usable proceeds
An automated value is a starting point. Ask the Realtor to review recent comparable sales, property condition, improvements, and market competition. Then model more than one sale-price scenario. A range helps the homeowner see what changes if the sale achieves less than expected.
- Estimated sale price, based on reviewed evidence.
- Mortgage payoff and any other liens.
- Agreed brokerage compensation and other selling expenses.
- Possible concessions, repairs, moving costs, and reserves.
- Estimated proceeds available after these items.
Compensation and transaction expenses vary; use the actual agreements and local estimates rather than a universal percentage. Obtain a current payoff when the transaction advances. The balance shown on an old statement may differ from the final payoff amount.
Step two: build the next housing budget
List the down payment, purchase closing costs, and cash the household wants to retain. Then compare principal and interest, property taxes, insurance, mortgage insurance if applicable, association fees, utilities, and maintenance. Keep monthly housing cost separate from cash needed at closing.
Bank of America’s 2026 homebuyer research highlights affordability and payment questions among people using AI for research. Give clients a human-reviewed worksheet they can understand instead of an answer based on a home price alone. Bank of America: 2026 Homebuyer Insights Report.
Step three: map the timing risk
Discuss whether the homeowner expects to sell first, buy first, or coordinate closings. A lender must determine whether a proposed financing structure is available and whether existing obligations affect qualification. A Realtor can explain contract and possession options with the appropriate local professionals.
- Write the desired moving window and any firm deadlines.
- Identify where the down payment will come from.
- Model a delayed sale and a lower-proceeds scenario.
- Discuss temporary housing or carrying costs where relevant.
- Confirm which decisions require lender, legal, or tax review.
A joint meeting agenda
End the meeting with owners for each task: the Realtor reviews the property evidence, the loan officer reviews financing, and the homeowner confirms priorities. Share financial details only with permission and through approved channels. A joint plan should reduce repeated questions without spreading sensitive documents unnecessarily.
Does a higher home value guarantee a better next purchase?
No. The next property’s price, financing, transaction costs, and timing also matter. Use Homes AVM to begin the review, then update the worksheet when real quotes and contract terms become available.
Keep learning
Continue with a related Homes AVM guide. Explain the difference between payment and total housing cost.