Moving: Where Do You Even Start?

When you’re ready to move, it can feel overwhelming.
Do I sell first or buy first?
What about my low interest rate?
Do I need the funds from my current home to purchase the next one?

Let’s break it down and look at what’s possible.

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Scenario 1: Move-Up Buyers Downsizing Monthly Costs

A couple owns a home worth $1.5 million and wants to move closer to schools as their children reach school age. They currently have a very low interest rate, but their goal is to lower their monthly mortgage by purchasing a smaller home.
        •       Current home value: $1.5M
        •       Mortgage owed: $600,000
        •       Estimated net after closing: $800,000
        •       Target purchase price: $800,000

They decide to allocate $400,000 toward the purchase and place some of the remaining funds into an IRA. This leaves them with a $400,000 mortgage—significantly reducing their monthly payment.

In this scenario, I would recommend a seller-paid rate buydown to lower the interest rate even further.

What is a buydown?
A buydown allows you to use some of your earned equity to reduce your mortgage interest rate, lowering your monthly payment.

This is one of the simplest and most strategic ways to transition into your next home while improving your financial position.

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Scenario 2: Buying Before You Sell

Now let’s look at a more common situation.
        •       Selling price: $1.0M
        •       Mortgage owed: $700,000
        •       Target purchase price: $700,000

You’ve already found your next home—but you need to sell your current one first.

First, take a breath: everything is possible. There is always a path forward.

As a realtor, my first recommendation is to get your home on the market and write your offer contingent on the sale of your home.

What does “contingent” mean?
It means you are committing to purchase the next home, but the sale must happen by a specific date for the transaction to move forward.

In many cases—especially in a strong market—sellers are open to this.

Let’s say your home sells for $1.0M and you walk away with approximately $250,000 after closing costs.
        •       Purchase price: $700,000
        •       20% down payment: $140,000

You can still choose to buy down your interest rate and even retain some cash after closing.

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Final Thoughts

No matter your situation, buying and selling at the same time can feel complex—but it doesn’t have to be. With the right strategy and guidance, there are always options to make your move work for you financially and practically.

I’m here to help you navigate every step and find the solution that fits your goals.