How to Calculate Your True Home Equity

NJ to FL Transition Plan Series | Step 1

If you’re a Northern New Jersey homeowner quietly considering a move to Florida, everything starts with one number: your true home equity.

Not Zillow’s estimate.
Not a neighbor’s opinion.
And not a guess.

In this first step of the NJ to FL Transition Plan Series, I break down how to calculate your real, usable equity so you can make confident, informed decisions about selling, downsizing, or relocating.

👉 Watch the full video here:
https://www.youtube.com/watch?v=06CJW5Ri2xE

What “True Home Equity” Really Means

Most homeowners think equity is simple:

Current home value minus mortgage balance.

That’s only part of the story.

True home equity reflects what you can realistically walk away with after a sale, not just what your home might be worth on paper.

To get there, you need to account for:

• A realistic market value, based on recent local sales

• Outstanding mortgage balance and liens

• Seller closing costs

• Potential capital gains exposure

• Any credits, repairs, or concessions buyers may request

Until you factor in all of these, your equity number is incomplete.

Step 1: Determine a Realistic Market Value

Online estimates can be a starting point, but they’re not decision-grade tools.

A true valuation should be based on:

• Recent comparable sales in your specific neighborhood

• Current buyer demand and inventory levels

• Condition, updates, and layout of your home

• Micro-market trends in towns like Fort Lee, Leonia, Edgewater, and surrounding areas

In shifting markets, pricing precision matters. Overpricing or underpricing can cost you real money.

Step 2: Subtract Your True Selling Costs

Selling a home in New Jersey comes with predictable expenses, including:

• Brokerage commissions

• NJ seller closing costs

• Attorney fees

• Transfer taxes

• Staging, prep, or light updates, if needed

These costs directly impact what you net, and they should be part of your equity calculation from the start, not an afterthought.

Step 3: Understand Capital Gains Exposure

Many long-time homeowners overlook this step.

If your home has appreciated significantly, you may be subject to capital gains taxes, depending on:

• How long you’ve owned the home

• Whether it’s your primary residence

• Filing status and applicable exemptions

This doesn’t mean you shouldn’t sell. It means you should plan smartly and avoid surprises.

Step 4: Calculate Your Net Proceeds

Once you combine:

• Realistic market value

• Mortgage payoff

• Selling costs

• Potential tax exposure

You arrive at your true net equity. This is the number that determines:

• Your buying power in Florida

• Whether downsizing or upsizing makes sense

• How much cash flexibility you’ll have after the move

• Timing strategies for selling and buying

Why This Step Comes First

Every successful NJ to FL transition starts with clarity.

Before choosing a Florida community, timing the market, or deciding whether to sell first or buy first, you need to know exactly where you stand.

That’s why equity calculation is Step 1.

The better the data, the better the decisions that follow.

What’s Coming Next in the Series

In upcoming steps, we’ll cover:

• When to sell in New Jersey to maximize leverage

• How to coordinate a NJ sale with a Florida purchase

• Choosing the right Florida market for your lifestyle and budget

• Common mistakes NJ homeowners make when relocating south

Each step builds on the last, starting with your equity.

Ready to Work With Scott Selleck?

Scott Selleck, Real Estate Broker
📧 [email protected]
📱 Cell: 201-970-3960
☎️ Office: 201-592-8900

Serving Bergen and Hudson County, NJ with 32+ years of trusted real estate expertise.