Feeling stuck between today’s Austin prices and your next dream home? You are not alone. When you plan to sell and buy bigger in the same market, price trends, interest rates, and inventory all shape what is possible and when. In this guide, you will learn how current conditions affect your budget, timing, and strategy, plus practical steps to move forward with confidence. Let’s dive in.
Austin prices and what they mean
Austin’s market has shifted from rapid gains to more mixed results across neighborhoods. Some areas stay competitive, while others give buyers more room to negotiate. Inventory can be tight in popular price bands but more flexible in higher price points and new-construction corridors. Mortgage rates remain above the lows of 2020 to 2021, which affects affordability and your pool of potential buyers.
Central vs. suburban dynamics
Established central neighborhoods often hold steady demand due to lifestyle and location. Suburban areas and parts of exurban Travis County offer new-build options that can expand your choices. Builders serving move-up and luxury buyers may offer incentives or flexible timelines. Your pricing and negotiating power will vary by neighborhood, product type, and lot size.
The rate factor and buyer pool
Higher rates increase monthly payments, so buyers need stronger incomes or larger down payments to qualify. If you rely only on sale proceeds for your next down payment, rates can limit the price range you target. Preapproval early in the process helps you understand your budget under today’s rates. Plan for rate movements and keep a buffer in your monthly payment estimate.
Turn equity into purchasing power
Before you shop, estimate what your sale will net. Use a conservative approach so your plan still works if your sale price or costs shift.
Net proceeds checklist
- Current market value. Ask a local agent for a Comparative Market Analysis using recent nearby sales.
- Mortgage payoff. Include any second liens such as a HELOC.
- Selling costs. Factor in real estate commissions, commonly in the 5 to 6 percent range, plus typical seller-paid closing costs, title, prorations, and any concessions.
- Prep costs. Budget for basic repairs, staging, and photography.
- Net proceeds. Market value minus mortgages, commissions, other seller costs, and prep costs. Run best case, likely case, and conservative case.
What your net can fund
- Down payment on your next home. Combine proceeds with a new mortgage that may be conforming or jumbo depending on price.
- Closing costs and reserves. Keep cash for moving, repairs, and higher annual property taxes.
- If proceeds are tight. Consider a smaller down payment, negotiate concessions on the purchase, or refine your wish list.
Texas tax items to budget
- Federal capital gains exclusion may apply if you meet ownership and occupancy rules. Confirm with a tax professional.
- Texas has no state income tax, but property taxes are locally assessed. Your new home’s assessed value will drive your annual bill.
- Homestead exemptions reduce taxable value on a primary residence. You will end the exemption on the old property and apply on the new one. Check local deadlines and processes.
Illustrative equity scenario
Suppose you sell at an estimated 600,000 dollars and, after paying off your mortgage and typical fees, your net is roughly 100,000 to 120,000 dollars. That amount could fund a 20 percent down payment on a 600,000 dollar purchase or contribute to a larger move-up if you are comfortable with the monthly payment. Treat this as a simple illustration. You will want exact comps and lender guidance for your numbers.
Choose your sequence
Your sequence affects stress, cost, and negotiating strength. Pick the path that fits your price point and timeline.
Option A: sell first
- Pros: You know your proceeds and avoid carrying two mortgages. You look strong to sellers as a contingency-free buyer.
- Cons: You may need temporary housing if your next home search takes time. In fast markets, your target home could go under contract before you are ready.
Option B: buy first
- Pros: You lock in the home you want and avoid a double move.
- Cons: You need financing to carry two homes or a bridge option. This approach adds cost and short-term risk.
Option C: sale contingency
- Pros: You can try to buy without carrying two mortgages.
- Cons: Contingencies are less competitive, especially for hot listings. You may need to shorten timelines or sweeten terms.
Option D: concurrent closings
- Pros: You time both deals so proceeds flow directly to your purchase.
- Cons: This requires tight scheduling with agents, lender, and title. Delays on one side can ripple to the other.
Bridge your timing
If you buy before you sell, or want flexibility, discuss these tools with a lender early.
- Bridge loan or swing loan. Short-term financing against your current equity to fund the new purchase.
- HELOC. A line of credit you set up before listing that can help with the down payment or repairs.
- Cash-out refinance before selling. Accesses equity but can be expensive if rates are higher.
- Contingent financing. A preapproval that is conditioned on the sale of your current home.
- Family funds. Gifts or short-term assistance that help you bridge timing.
A practical Austin move-up timeline
- Get a market valuation and net proceeds estimate from a local agent who knows your neighborhood.
- Secure a lender preapproval and review buy-first vs. sell-first scenarios, including bridge options.
- Decide your sequence based on inventory and demand at your price points.
- If selling first, plan temporary housing and your timeline for listing, showings, and closing.
- If buying first, confirm how you will cover two payments or use a bridge solution.
- Negotiate closing dates, rent-backs, or temporary occupancy agreements if needed.
- Coordinate title and fund transfers to keep your move smooth.
When a coordinated team helps most
A move-up often requires a listing agent, a buyer’s agent, a skilled lender, title and escrow, contractors, a stager, and movers. A team-based approach keeps everyone aligned and reduces risk. It is especially valuable for concurrent closings, complex contingencies, or luxury listings where timing and presentation matter. Local experts can also help you compare neighborhood pricing, evaluate new-construction timelines, and navigate homestead exemption timing.
Two quick scenarios
Scenario 1: sell first with a rent-back
You list a central Austin home in a strong price band and negotiate a rent-back for 30 to 60 days after closing. Your proceeds are confirmed, and you make a non-contingent offer on your next home with a larger down payment. This balances speed, certainty, and flexibility.
Scenario 2: buy first with a HELOC
You open a HELOC before listing and use it for the down payment on a suburban new build. Your agent coordinates inspections and a later completion date with the builder. Once your current home closes, you pay down the HELOC and complete your move with a single move-in.
Ready to plan your move-up?
You do not need to guess your way through Austin’s market. With the right plan, you can protect your equity, time your move, and win the home that fits your next chapter. If you want a clear path and a coordinated team that handles the details, connect with KHG Development Corp, DBA The Kelvin Glover Team. We will help you value your home, map the numbers, and execute your timeline with confidence.
FAQs
How do Austin prices affect my move-up budget?
- Prices, inventory, and rates set your sale proceeds and payment on the next home. Run conservative net-proceeds numbers and get lender scenarios to define your range.
What is the best sequence for selling and buying in Austin?
- If your current price band is hot, selling first may strengthen your next offer. If your target home is scarce, buying first or coordinating concurrent closings can secure it.
How much equity do I need to buy bigger in Austin?
- It depends on your target price, down payment, closing costs, and reserves. Many move-up buyers combine net proceeds with a new mortgage. Ask a lender for exact requirements.
Can I make a contingent offer in Austin and still compete?
- Yes, but it is less competitive for in-demand homes. You can shorten contingency periods, improve price or terms, or add a rent-back to help the seller.
Will my property taxes increase when I move up in Travis County?
- A higher-priced home generally means higher annual property taxes. End the homestead exemption on your old home, apply on the new one, and plan for new tax amounts.
Do I owe capital gains tax when I sell my Austin home?
- You may be able to exclude a portion of gains on a primary residence if you meet IRS ownership and occupancy tests. Confirm your situation with a tax professional.
