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 be used to cover:

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

Without enough equity, many homeowners feel “house-locked,” unable to sell without dipping heavily into savings.

How to Calculate Your Equity

Get an Accurate Home Value

Online estimates are a starting point, but they’re often off by tens of thousands of dollars. To get a realistic number:

• Request a comparative market analysis (CMA) from a local agent
• Review recent sales in your neighborhood
• Factor in upgrades, condition, and lot size

Subtract What You Owe

Check your most recent mortgage statement for your payoff balance. This is the amount you subtract from your home’s value.

Example Equity Calculation

Current value: $600,000
Mortgage balance: $375,000
Estimated selling costs: $35,000

Net equity:$600,000 – $375,000 – $35,000 = $190,000

How Much Equity Do You Really Need to Move?

The 20% Down Myth

Many buyers believe they need 20% down to move. While that can eliminate PMI, it’s not always required.

Lower Down Payment Options

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

Don’t Forget Transaction Costs

In addition to a down payment, equity should cover:

• Closing costs (typically 2–3%)
• Moving expenses
• Initial repairs or updates

A safe rule of thumb is having equity equal to 10–15% of the price of your next home.

Using Equity to Upsize or Downsize

Upsizing

Many families in Meridian and Eagle sell starter homes and use their equity to step into larger properties. Equity typically covers the down payment and reduces monthly payment stress.

Downsizing

Downsizing can free up substantial equity. Some homeowners move into smaller homes or 55+ communities and use leftover funds to invest, travel, or eliminate debt.

Timing Your Move Based on Equity

The Rate Lock-In Effect

Many homeowners hesitate to move because their current mortgage rate is lower than today’s rates. Strong equity can offset this by allowing a larger down payment.

Sell Sooner or Later?

• Sell sooner if you already have sufficient equity
• Sell later if you’re building equity rapidly

What If You Don’t Have Enough Equity?

HELOCs and Bridge Loans

Home equity lines of credit (HELOCs) and bridge loans allow you to access equity before selling, making it easier to buy first.

Buy Before You Sell Programs

With a Buy Before You Sell program, you can unlock your equity upfront, purchase your new home, and then sell your current home after you’ve moved.

Maximizing Your Equity Before Selling

• Fresh paint and curb appeal improvements
• Decluttering and light staging
• Strategic pricing to drive competition

Real-Life Equity Examples

• Upsizing family: Used $150K equity to upgrade into Eagle
• Downsizers: Paid cash and invested remaining funds
• Relocators: Used California equity to buy comfortably in Boise

Conclusion: Do You Have Enough Equity to Move?

Equity isn’t just a number—it’s the key to your next chapter. Knowing how much you have and how to use it gives you options and confidence.

If you want help understanding your equity and planning your move, let’s connect and run the numbers together.

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