How Much Equity Do You Need to Move?

by Curtis Chism - Idaho

Introduction: Why Equity Matters More Than You Think

One of the first questions homeowners ask me when they’re considering a move is: “Do I have enough equity to sell and buy again?”

It’s a fair question. For many families in Boise, Meridian, Eagle, and Star, equity is the single biggest factor that determines whether they can upgrade, downsize, or relocate without feeling financially stretched.

In this post, I’ll walk you through what equity actually is, how to calculate it, how much you realistically need to move, and strategies to leverage your equity without getting stuck. Whether you’re moving across town or relocating to Idaho from out of state, knowing your equity position helps you create a game plan you can feel confident about.

Understanding Home Equity

What Is Equity?

Equity is simply the difference between what your home is worth and what you owe on your mortgage. For example, if your home is worth $550,000 and you owe $350,000, your equity is $200,000.

Why Equity Matters When Moving

Your equity is what fuels your next move. It can cover:

Your down payment on the next home
Closing costs and moving expenses
A cushion for unexpected costs during the transition

Without enough equity, you may feel “house-locked,” unable to sell without dipping into savings.

How to Calculate Your Equity

Get an Accurate Home Value

Don’t just rely on online estimates. They can be off by tens of thousands of dollars. Instead:

Request a comparative market analysis (CMA) from a local agent (like me).
Look at recent sales in your neighborhood.
Factor in upgrades and condition.

You can also check Boise homes for sale to see how your property stacks up against active listings.

Subtract What You Owe

Look at your latest mortgage statement or log into your lender’s portal. The remaining balance is what you subtract from your home’s value to get your equity.

Example Calculation

Current value: $600,000
Mortgage balance: $375,000
Estimated selling costs: $35,000 (commissions, fees, repairs)
Net equity = $600,000 – $375,000 – $35,000 = $190,000

That $190,000 is what you can put toward your next move.

How Much Equity Do You Really Need to Move?

The 20% Down Rule

Many buyers aim for 20% down to avoid private mortgage insurance (PMI). For a $500,000 home, that’s $100,000. If you’re moving into a higher price point, the equity needed grows.

Minimum Down Payments

The good news is you don’t always need 20% down. Loan programs allow for:

FHA loans: as little as 3.5% down
Conventional loans: 3–5% down
VA loans: 0% down for qualified veterans

This means you may be able to move with far less equity than you think.

Covering Transaction Costs

In addition to a down payment, you’ll need equity to cover:

Closing costs (2–3% of purchase price)
Moving expenses (movers, trucks, storage)
Repairs or updates to your new home

A good rule of thumb: have at least enough equity to cover 10–15% of the purchase price of your next home.

Using Equity to Move Up or Downsize

Upsizing to a Larger Home

Families in Meridian or Eagle often sell starter homes to upgrade into larger properties. Equity here typically covers the down payment and gives breathing room to take on a larger mortgage.

Explore current Eagle homes for sale if you’re curious what upgrading looks like.

Downsizing for Lifestyle

If you’re downsizing into a smaller home or 55+ community like Regency at Milestone Ranch in Star, you may unlock equity to boost retirement savings or stay mortgage-free.

Check out Star homes for sale for downsizing options.

Timing Your Move Based on Equity

The Lock-In Effect

Some homeowners hesitate to sell because their current mortgage rate is lower than today’s rates. But if you have strong equity, you can offset higher monthly payments with a larger down payment.

Selling Sooner vs. Later

Sell sooner if prices are steady and you already have the equity you need.
Sell later if you’re building equity fast and want a larger cushion.

Remember: waiting too long can also risk missing the right market window.

Options If You Don’t Have Enough Equity

HELOC or Home Equity Loan

Tap into your equity without selling by using a home equity line of credit (HELOC). This works if you want to buy first, then sell.

Bridge Loans

A bridge loan lets you borrow against your current equity to fund the down payment on your next home.

Buy Before You Sell Programs

With our Buy Before You Sell Program, you can unlock your equity upfront, purchase your new home, and then sell your old one afterward. This eliminates the stress of trying to time everything perfectly.

Preparing Your Home Sale to Maximize Equity

Minor Updates With Big Returns

Fresh paint, landscaping, and decluttering can add thousands to your sale price.

Strategic Staging

Staging highlights your home’s best features and can increase offers. Many families are surprised at how small tweaks lead to big returns.

Pricing Right

Overpricing can leave your home sitting. Pricing strategically creates competition and often nets more equity in the end.

Check out Meridian homes for sale to see how strategic pricing works in real time.

Real-Life Examples of Equity in Action

The Upsizing Family

A Meridian couple sold their $400,000 starter home with $200,000 equity. They used $150,000 for a down payment on a $650,000 home in Eagle, comfortably covering the move.

The Downsizers

A Star family sold their $700,000 property with $400,000 in equity. They purchased a $500,000 home, paid cash, and invested the leftover funds.

The Relocators

A family from California sold their $1.2M home, brought $600,000 in equity, and purchased a $750,000 new construction in Boise, giving them plenty of room to breathe financially.

Key Takeaways

Equity is your fuel for the next move.
You don’t always need 20% down—loan programs can lower the barrier.
Equity should cover at least your down payment, closing costs, and moving expenses.
Programs like Buy Before You Sell can help bridge the gap if your equity is tied up.
The right strategy depends on your goals—upsizing, downsizing, or relocating.

Conclusion: Do You Have Enough Equity to Move?

Equity isn’t just a number on paper. It’s the key to your next chapter. Whether you’re looking to move up into a bigger home, downsize into something simpler, or relocate to Boise for a fresh start, knowing how much equity you need makes the process smoother.

If you’re wondering about your own equity situation, I’d love to run the numbers with you. Let’s connect, review your current home’s value, and map out a game plan for your move.

📲 Call or text Curtis Chism at (208) 510-0427
📥 Ready to relocate remotely? Download our Boise Relocation Guide