Thinking about a bigger home but unsure how to unlock the equity in your current place first? You are not alone. Many Downers Grove homeowners want more space, a different layout, or a shorter commute, yet feel stuck on timing and financing. In this guide, you will learn how to calculate usable equity, choose a smart funding path, and price and market your home so it becomes the engine for your next purchase. Let’s dive in.
Why move up in Downers Grove
Downers Grove attracts move-up buyers who value Metra access, sidewalk-friendly streets, and nearby parks. Many households also focus on layout needs like additional bedrooms, a finished basement, and a garage. Proximity to major routes like I-88 and I-355 supports dual-income commutes to area job centers.
Seasonality and timing
Buyer activity across the western suburbs is typically strongest in spring and early summer. Fall and winter can be quieter but often bring more motivated buyers and less competition. Your best timing depends on current local inventory and days on market for your price band, so use recent MLS data for guidance.
Watch rates and inventory
Mortgage rates affect purchasing power. Keep an eye on trends using the Freddie Mac Primary Mortgage Market Survey. Locally, supply can shift quickly, so review the last 30 to 90 days of active and pending listings through Midwest Real Estate Data (MRED) to understand leverage as a seller and buyer.
Calculate your usable equity
Your equity powers the down payment and closing costs on your next home. Start with a clear picture of net proceeds.
- Market value: The likely sale price today.
- Mortgage payoff: Total remaining balance and any payoff fees.
- Gross equity: Market value minus mortgage payoff.
- Net proceeds (usable equity): Gross equity minus selling costs, repairs, and moving.
Common seller costs include real estate commissions, title and closing fees, prorated taxes or HOA dues, and any inspection-driven repairs. Commissions are commonly around 5 to 6 percent nationally. Exact figures vary, so build your estimate with real quotes.
How to get accurate numbers
- Ask a local agent for a Comparative Market Analysis with a realistic price and timeline.
- Request a payoff statement from your mortgage servicer.
- Get a seller closing-cost estimate from a title company or attorney, including any county recording or transfer fees. Check the DuPage County Recorder for fee references.
- Review the Village website for any applicable local requirements via the Village of Downers Grove.
Quick worksheet example
Use your own numbers to estimate net proceeds:
- Expected sale price = $X
- Subtract estimated commission (about 5–6% of $X)
- Subtract seller closing costs (about 1–2% of $X, plus prorations/fees)
- Subtract your mortgage payoff(s) and any prepayment penalty
- Subtract repair/staging/moving budgets
- Result = estimated net proceeds for your next down payment and reserves
This estimate helps your lender model scenarios and your agent plan pricing and timing.
Choose the right financing path
There is no one-size strategy. Your best route depends on cash needs, risk tolerance, and timing.
Use sale proceeds
- Pros: Lowest cost, no extra short-term debt, simple documentation.
- Considerations: You may need temporary housing or a rent-back to bridge closings.
HELOC or home equity loan
- Pros: Access cash before listing; flexible, often interest-only early payments.
- Considerations: Variable-rate risk on HELOCs and separate underwriting. Learn basics from the CFPB’s guide to HELOCs.
Bridge loan
- Pros: Purpose-built to cover the gap between buying and selling; can strengthen a non-contingent offer.
- Considerations: Typically higher rates and fees; short term and strict qualification.
Cash-out refinance
- Pros: Liquidity before selling; can fund improvements that boost sale price.
- Considerations: Resets your current loan at a new rate and costs; some programs have seasoning rules after purchase. Confirm details with your lender.
Underwriting and timing tools
- Debt-to-income and reserves: Carrying two mortgages, even briefly, can limit your approved loan amount. Get preapproved with multiple scenarios.
- Contingent offers: You can make your next purchase contingent on your sale. In competitive segments, non-contingent offers are often preferred.
- Rent-back: Negotiate staying in your home for a short period after closing if the buyer’s lender and program allow it.
- Coordinated closings: Title and escrow teams can schedule same-day or back-to-back closings to transfer proceeds efficiently.
- Rate locks: If timing is uncertain, discuss lock length and any float-down option with your lender.
Price and market for maximum net
A data-driven plan can turn your current home into the seed for your next purchase.
Evidence-based pricing
Use a CMA anchored to the last 90 days of comparable sales, adjusted for square footage, lot, updates, basement finish, condition, and school attendance areas. Identify the buyer “price bands” most likely to shop your home. In balanced or cooling conditions, sharpen price to attract multiple offers.
High-ROI prep
Focus on cost-effective updates that widen buyer appeal: neutral paint, floor touch-ups, minor kitchen and bath refreshes, lighting, and curb appeal. Save larger renovations for your next home unless your agent’s analysis supports a clear return.
Marketing that reaches move-up buyers
Highlight practical benefits that Downers Grove buyers value: Metra access, commute routes, parks, and flexible living spaces. Use high-quality photography, floor plans, and virtual tours to meet busy buyers who shop online during evenings and weekends. Offer flexible showing windows and well-timed open houses.
With a listing-focused approach, a concierge presentation can lift perceived value and shorten time on market. That includes in-house staging guidance, professional photo and video, and targeted digital campaigns that reach nearby suburbs and city neighborhoods where buyers are looking for more space.
Negotiation levers and timeline
Be clear about your preferred closing window and any rent-back needs. Consider small incentives that reduce friction, like a limited home warranty or flexible possession. In typical conditions, plan for 2 to 8 weeks from listing to accepted offer, then coordinate closings to move proceeds directly into your purchase.
Your move-up action plan
- Meet a trusted local agent for a CMA, strategy, and timing.
- Request a mortgage payoff and get preapproved for the next home using projected net proceeds.
- Ask a title company for a seller cost estimate, including county recording and transfer fees through the DuPage County Recorder.
- Choose your path: sell-first, buy-first with bridge or HELOC, or write a sale-contingent offer.
- Complete high-ROI prep and staging; schedule professional media.
- Launch a targeted marketing plan to the right price band and buyer pool.
- Negotiate terms that protect your purchase timeline, such as rent-back if allowed.
- Align closings so sale proceeds fund your down payment the same day.
Taxes and fees to plan for
Many homeowners qualify for the federal primary residence exclusion on capital gains if they meet ownership and use tests. Review details in IRS Publication 523 and consult a tax professional for your situation. Illinois treats capital gains as income under state rules; see the Illinois Department of Revenue’s individual income tax resources. For local requirements or updates, check the Village of Downers Grove and confirm closing fees with your title company.
Work with a listing-focused local team
If you want your current home to fund your next one, presentation and pricing matter. Our boutique, listing-first model pairs integrated staging, professional photo and video, and targeted digital marketing with an evidence-based pricing strategy. You get hands-on guidance from prep through close, so you can move up with confidence.
Ready to map your numbers and timeline? Get your free home valuation and a tailored move-up plan with The Tully Team.
FAQs
How do I estimate home equity for a Downers Grove move-up?
- Start with a CMA for market value, subtract your mortgage payoff, then subtract estimated commissions, seller closing costs, and repair/moving budgets to get net proceeds.
Can I buy a new home before selling my current Downers Grove home?
- Yes, using tools like a bridge loan or HELOC, but expect stricter underwriting, possible higher costs, and the need to qualify while carrying two mortgages.
What if mortgage rates change while I am house-hunting in the suburbs?
- Discuss rate locks and any float-down option with your lender, and build timing scenarios so your approval accounts for potential rate movement.
Are rent-backs common for sellers who need time to buy in Downers Grove?
- Short rent-backs can be negotiated when allowed by the buyer’s loan program and terms; confirm details early so they are reflected in your listing and offer strategy.
Which pre-list updates usually give the best return for suburban buyers?
- Neutral paint, lighting, minor kitchen and bath refreshes, flooring touch-ups, and curb appeal typically offer strong value relative to cost and timeline.
How long does it take to align selling and buying closings in this market?
- Many sellers can align closings on the same day or within a few days by coordinating with title and escrow teams; plan early and keep both timelines flexible.
