How to Use Your Home Equity to Buy Your Next Home With Ease
Many homeowners today are sitting on more equity than ever before. After years of paying down mortgages and watching home values rise, especially in areas like Charleston, many are now asking an important question:
“Do I have enough equity to buy my next home with cash and avoid another mortgage?”
The answer is: possibly. But it depends on your unique financial situation, how much equity you’ve built, and what your goals are for your next move.
Why Homeowners Have So Much Equity Now
Time in the home – If you’ve lived in your home for 10, 15, or even 20 years, your mortgage balance is likely very low.
Price appreciation – Home values in Charleston have risen significantly over the past decade.
Lower original loan amounts – Homes purchased years ago often started with smaller balances, adding to today’s equity advantage.
Combine these factors, and many longtime owners find themselves in a strong position.
Understanding Your True Equity
The formula to calculate equity is simple:
Current Home Value – Mortgage Balance = Gross Equity
But your “walk-away” amount is usually less. That’s because you’ll also need to account for:
Selling and closing costs
Moving and insurance expenses
Possible tax burdens (depending on your gain and filing status)
This means what you think you’ll net may be different from reality. That’s why we create a Seller Net Sheet for our clients. It breaks down:
Your projected sale price
Subtracted mortgage payoff and costs
Any potential tax obligations
This gives you a clear picture of what you’ll truly have available for your next purchase.
Tip: Primary residences may qualify for tax exemptions, but limits differ if you’re single or married. For larger gains, taxes may still apply.
Today’s Market Is Different
If you haven’t sold a home in years, you’ll notice things have changed:
Technology drives marketing and buyer searches
Selling processes are more streamlined
Realtor hiring and compensation models have shifted
It can feel overwhelming, but the right guidance makes all the difference.
Two Popular Solutions for Sellers
Multiple Offer Guarantee
Before you list, we bring multiple offers for you to review in just one visit.
Why homeowners love it:
Real, side-by-side offers at or near market value
Fast and easy process
More control over timing and terms
Unlock Your Equity Program
This option allows you to access your home’s equity before selling. That money becomes cash in your bank account, giving you the flexibility to buy your next home first.
Key benefits:
Shop as a stronger cash buyer with fewer contingencies
Negotiate a better price on your next home
Reduce the stress of juggling two transactions at once
And yes, you can even use both programs together to maximize flexibility and profit.
Is Buying With Cash Possible for You?
Once we calculate your Seller Net Sheet, you’ll know exactly how much you can put toward your next home.
If your equity covers the full purchase, you can move forward mortgage-free.
If you’re slightly short, you can explore nearby areas with lower prices or finance a portion comfortably.
Either way, you’ll move with clarity and confidence.
Final Thoughts
If you’re considering downsizing, simplifying, or just making a change, now may be the perfect time to put your equity to work. With tools like the Multiple Offer Guarantee and Unlock Your Equity Program, you can sell for top dollar, buy with confidence, and make the transition as smooth as possible.
📞 Ready to explore your numbers? Contact us today for a free Seller Net Sheet and personalized plan. Click the links below or call us at (843) 936-1788. Let’s make your move as hassle-free, profitable, and seamless as it can be.