Move-Up Buyers in Solon: How to Use the Equity in Your Current Home

If you are thinking about upgrading to a larger or nicer home in Solon, the most important asset you probably have is the equity sitting in your current house. Here is how to think about putting it to work.

First, figure out what your current home is actually worth and what you owe. The difference is your usable equity. In Solon and the surrounding areas, many homeowners who have been in their homes for five years or more are sitting on more than they realize, especially given the price appreciation of the past several years.

That equity can fund your down payment on the next home. In most move-up scenarios, sellers are putting between 20% and 30% down on the new purchase, which keeps the monthly payment manageable even at today's rates. The bigger your down payment, the lower your new mortgage and the easier the numbers work.

The sequencing question is where a lot of move-up buyers get stuck. Do you buy first or sell first? Both approaches have tradeoffs. Buying first gives you more time and less pressure to land somewhere you love, but it does require managing two transactions simultaneously. Selling first gives you certainty about your proceeds but may leave you scrambling to find the next home quickly.

There are also bridge financing options that can give you more flexibility. We have worked with a lot of move-up buyers in this market and can walk you through the different scenarios and connect you with lenders who specialize in exactly this situation.

Ready to make a move in Solon? Call us at (216)373-7727 or visit www.21mike.com to connect with the Mike Team at LPT Realty.