How Much Equity Do You Need to Move?

Understanding your equity is the single most important step in deciding whether to move. It determines what you can afford, whether you can buy before you sell, and what your net proceeds will look like.

What Is Equity?

Equity is simple: your home's current market value minus what you owe on your mortgage. If your home is worth $450K and you owe $200K, you have $250K in equity. That equity is real money — but not all of it ends up in your pocket.

What Reduces Your Net Proceeds

• Agent compensation (typically 5–6%)
• Closing costs (typically 1–3%)
• Outstanding mortgage payoff
• Potential repair credits or concessions
• Any liens or outstanding debts on the property

The Equity Threshold for Moving

There's no single magic number, but as a general guideline, you need enough equity to cover your selling costs plus a down payment on your next home. If you're looking at a $500K home and need 10% down, that's $50K — plus your closing costs and compensation on the current home.

What If You Don't Have Enough Equity?

You still have options. You might be able to sell and rent temporarily, do a lease-purchase on your next home, or wait for appreciation to build more equity. The key is knowing your real numbers before you make any decisions.