How Much Will I Walk Away With When I Sell My Erie Home to Downsize?

How much will you walk away with when you sell your Erie home to downsize? It's the sale price minus what you still owe on the home, the commissions, the closing costs and anything you agree to fix or pay for along the way. The exact number depends on your home and your loan, and I can put together an estimate at a few different prices so you see it before you decide anything. That one number often tells you what your next home can be.

Most people I talk with know roughly what their home might sell for. Far fewer know what they'd actually keep. That gap is where a lot of downsizing plans go sideways, so it's worth getting clear on early.

I'm Carol, and Homes by Carol is my real estate practice here in Erie. Carol Vanlandingham is a REALTOR® with eXp Realty in Erie, Colorado, helping people through life transitions, downsizing, first homes and relocation across Erie, Boulder County and Northern Colorado. Before I got my license, I fixed and flipped houses, so I've looked at a lot of homes through the lens of "what does this cost, and what does it bring back?"

Because it decides your choices. If you plan to buy your next home with cash, it tells you your budget. If you plan to borrow, it tells you how much you can put down. If you want money left over for travel, family or retirement, it tells you whether that's realistic.

It also helps with timing. Whether you sell first or buy first often comes down to how much of your equity you need in hand to make the next move.

And it can answer a bigger question. Sometimes the numbers show that moving is a clear step forward. Sometimes they show that staying is the better choice for now. If that's what I see, I'll tell you. "Not yet" is sometimes the best advice I can give.

Here are the main pieces, in plain words. Not every sale has every item, and the amounts are different for every home.

• Your loan payoff. Whatever you still owe on your mortgage, plus any home equity loan or line of credit, gets paid off at closing.
• Commissions. The cost of selling with agents, paid at closing.
• Closing costs. Fees for the title company and other parts of closing. These vary from home to home.
• Property taxes and HOA dues owed up to closing. These get settled at closing so the buyer starts fresh. Erie sits in two counties, Boulder County west of County Line Road and Weld County east of it, and the two sides have different tax rates.
• Repairs or credits after inspection. If the buyer's inspection finds something and you agree to fix it or give a credit, that comes out of what you keep.
• Getting the house ready. Paint, cleaning, small repairs or staging before you list. These are paid before closing, but they still count.

What's left after all of that is what you walk away with. Some people call it net proceeds. I just call it the number that matters.

You can do a lot of this before you've decided to sell.

Step 1: Get a realistic price range

Online estimates are a starting point, but they're built by a computer from public records, and the computer has never been inside your house. A free home value report from me uses homes that truly match yours. You get a price range, not a single magic number, sent by email with a short video that walks you through it.

Step 2: Find your loan payoff amount

Your mortgage statement shows a balance, but the exact payoff can be a little different. Your lender can tell you the payoff amount. If you have a home equity line, include that too.

Step 3: Estimate the costs of selling

I put together an estimate of what you'd keep at a few different prices, after commissions and typical closing costs. Seeing the low, middle and high end side by side helps a lot. You can read more about how I build the price around your goals.

Step 4: Decide what to fix and what to skip

Long-time homes often need a few things. The goal is to spend where it helps the most for the least money. We walk through the house together, and I'll tell you what I'd do and what I'd leave alone. More on that in how I get a home ready.

Step 5: Leave room for the unexpected

Inspections can turn up things nobody knew about. A cushion in your plan means a surprise is an inconvenience, not a crisis.

Step 6: Ask your accountant about taxes

Whether you owe any tax on the sale depends on your situation. That's a question for your accountant, and it's worth asking before you sign anything. I'm not a tax advisor, so I'll always send you to yours for those answers.

Step 7: Match the number to your next home

Now you can look at your next home with a real budget. In Erie, several Boulder Creek Builders neighborhoods have single-level ranch homes built for lock-and-leave living, and many downsizers start their search there. My Erie page has more about the town.

One couple I helped had lived in their three-level Boulder home for 37 years. They wanted single-level living for their next chapter, and they wanted to stay close to their doctors and the community they'd built over decades. We found them a home in Erie that gave them both. After closing, we had dinner together to celebrate.

Their move is a good reminder of what this number is for. It isn't a scorecard. It's a tool for finding the home that fits your life now. We weren't trying to find less. We were trying to find better for them now.

These are the ones I see most often.

• Counting the sale price as money in the bank. The price is not what you keep. Plan from the net number.
• Trusting an online estimate. It doesn't know about your updates, your condition or your lot. It can be too high or too low.
• Forgetting the second loan. A home equity line gets paid off at closing too.
• Overspending on updates. A big project the next owner may want to redo can eat into what you keep. A short, smart list usually does more.
• Choosing an offer on price alone. The highest offer isn't always the one that closes. I compare offers on financing strength, appraisal risk, contingencies and timing, so you can see the full picture.
• Skipping the tax question. Ask your accountant early, not after closing.
• Buying the next home before knowing the number. It's easy to fall in love with a house and then find the budget doesn't work.

How much does it cost to sell a house in Erie?

It depends on the price, your loan and the terms of the sale. The main costs are commissions, closing costs, any repairs or credits, and taxes and dues owed up to closing. I'll put together an estimate for your home so you aren't guessing.

Can you tell me what I'd walk away with before I decide to sell?

Yes. Many people ask for a value report and a net estimate just to plan. It doesn't commit you to anything.

Is a home value report the same as an appraisal?

No. It's a market analysis from a real estate agent. A formal appraisal is done by a licensed appraiser, usually for a lender or a legal matter.

Will I owe taxes when I sell my home?

That depends on your situation, so please ask your accountant. It's a good question to answer before you list.

What if the numbers say I shouldn't move yet?

Then you've learned something valuable. Staying can be the right choice, and I'll tell you if that's what I see. We can look again whenever you'd like.

If you're thinking about downsizing, the best first step is knowing what you'd keep. My page on downsizing and right-sizing explains how I plan both moves together. When you're ready, send me a note or call me at (303) 522-3130, and I'll put your numbers together with no pressure.