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Estimate what you will keep from the sale before shopping

Eric identifies a first time seller mistake: choosing the next home before understanding how much cash the current sale may actually produce. The sale price and the money available for the next purchase are different numbers.

By Eric Hamilton · Published October 6, 2026

Originally uploaded August 19, 2025 · 0:38 · Watch on YouTube

Written companion added October 6, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Build a seller proceeds estimate

Ask your agent or closing professional to estimate the mortgage payoff, transaction costs, negotiated credits, and other expected deductions. Start with a realistic sale price and also test a lower outcome. Any early estimate can change when the final contract and closing figures are available.

Connect the sale with your financing

Review the estimated proceeds with your lender before committing to the next purchase. Identify how much will fund the down payment and closing costs, and how much you want to retain. Discuss whether the purchase depends on the sale closing first.

Prepare before you list

The video recommends doing the financing work early. Review preapproval, the likely new payment, and the timing of both transactions before listing. That preparation can reveal a cash gap or temporary housing need while you still have choices.

Can I use the expected sale price as my next down payment?

No. First subtract debt payoff and selling costs, then reserve the cash needed for the purchase and your household.

Sources and scope

This August 2025 Short emphasizes planning order. Buying before selling can still be possible when its financing and risks are deliberately evaluated.

  1. Freddie Mac: Costs of selling a home Accessed October 6, 2026
  2. CFPB: Preapproval and its limits Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

KEEP LEARNING

Your next questions

How much cash will I have after selling my home?

Start with a realistic sale price, then subtract the mortgage payoff, other liens and the actual selling and settlement costs. The result is estimated proceeds, not a guaranteed deposit. Use several sale prices and keep a separate reserve when deciding how much of the proceeds to put into the next home.

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How to Buy Before Selling When Your Down Payment Is in Home Equity

Buying first involves two separate decisions: finding the cash for the new closing and choosing the payment you want after the old home sells. Eric compares five routes instead of assuming a bridge loan is the only answer.

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Plan the next purchase before listing your first home

Your sale and next purchase are connected. Decide how you will qualify, where the closing money comes from and what happens if the two transactions do not finish on the dates you expect.

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Compare the whole monthly budget before protecting a low mortgage rate

Eric describes a family whose low mortgage rate did not tell the whole story. Their mortgage, credit card and car payments together mattered more to their monthly budget than the mortgage rate alone.

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