Before You Sell, What Will Your Next Move Cost?

Start with the money available after the sale

Use estimated net proceeds, not the headline sale price. Begin with a realistic sale range, then subtract the mortgage payoff and the actual selling expenses you expect. Include preparation, settlement charges, any agreed compensation or concessions, and other applicable items without counting a cost twice. Use written estimates for the property and transaction rather than assuming a standard fee percentage.

The following is a hypothetical planning example prepared October 18, 2026. These amounts are invented for arithmetic only; they are not typical fees, quotes or a tax estimate.

• Assumed sale price: $1,500,000.
• Assumed mortgage payoff: $700,000.
• Assumed total selling and preparation costs: $60,000.
• Illustrative proceeds before any personal tax consequences: $740,000.

Test the sale estimate

Changing the expected price, payoff or cost estimate changes what is available for the next step. If the plan works only at the top of the sale range, it needs another look before you commit to spending.

Separate the next down payment from other cash needs

Continue the same example. Suppose the next home costs $1.2 million and the planned down payment is $400,000, leaving an $800,000 loan. Assume $25,000 for purchase closing costs and prepaid items, plus $10,000 for moving and temporary housing. That leaves $305,000 from the illustrative $740,000 proceeds before personal taxes, reserves or other spending.

If the household decides to preserve a $100,000 reserve, $205,000 remains unallocated in this simplified model. That reserve is a chosen assumption, not a recommendation that suits every household. A deposit already paid toward the purchase must be reconciled so it is not counted again at closing.

The CFPB's Loan Estimate explainer distinguishes estimated cash to close, closing costs and monthly payment components. It provides a useful place to check a lender's transaction-specific numbers. The page was reviewed for this article on October 18, 2026.

Monthly costs and timing can change the answer

Passing the cash test does not automatically make the next home comfortable. Price the next loan using an actual lender estimate, then add the property's taxes, insurance, HOA dues if applicable, maintenance and any immediate work. Get property-specific estimates rather than carrying the old home's monthly cost into the new budget.

Next, test the sequence. Selling first can create temporary housing and storage costs. Buying first can create overlapping payments and a funding gap. A bridge or other temporary financing arrangement has its own terms and approval requirements; do not assume it will be available when needed.

The limitation of a simple worksheet is that individual tax consequences, property-tax treatment and financing eligibility can materially change the result. Have the appropriate tax and lending professionals confirm your situation. No tax exclusion, transfer benefit or refinancing outcome is assumed here.

A practical seller checklist

• Estimate sale proceeds at more than one plausible price.
• Obtain current payoff and itemized selling-cost estimates.
• Separate down payment, purchase costs, moving costs and reserves.
• Test both the ongoing monthly budget and a longer-than-expected overlap.
• Confirm tax and lending assumptions before relying on the remaining cash.

Putting the plan to work

The best offer for your move is the one whose net outcome and timing fit a workable plan. Build that plan before the excitement of a headline price takes over.

Source review: October 18, 2026. Educational information; property-specific decisions require current local facts.

Real estate agent | DRE 02236890 | Real Brokerage Technologies.