Using Home Equity to Buy Your Next Home in Auburn and Opelika
Rozi Dover
HomeLink Realty · Licensed since 2004
Home equity is usually what makes a move-up purchase possible, and it is one of the most common questions I hear from Auburn and Opelika families: how much equity do I need before I can buy my next home? This guide walks through the equity you typically need, the four main ways to put it to work, and what the current Lee County market means for your timing.
How Much Equity Do You Need Before You Buy?
Most lenders and agents point to roughly 10% to 20% equity in your current home as the practical range for buying before you sell. At the lower end, about 10% is enough to cover your selling costs, which typically run 8% to 10% of the sale price once you count the agent commission, closing costs, and minor repairs. At 20% or more you have real flexibility: you can fund a new down payment and still keep a cushion. Bridge lenders, in particular, usually want to see at least 20% equity before they approve a short-term loan.
Four Ways to Put Your Equity to Work
Sell first, then buy. The simplest and least risky path. You use the proceeds from your current sale for the down payment on the next home. The trade-off is timing: you need somewhere to live in between, whether that is a short-term rental, family, or a temporary home.
Bridge loan. A short-term loan secured by the equity in your current home that funds the new down payment before your old home closes. It lets you make a non-contingent, more competitive offer, and it is repaid when your current home sells. Bridge loans typically require about 20% equity and strong credit, and the fees are higher because the term is short.
HELOC. A home equity line of credit gives you a revolving credit line against your equity. Most lenders cap total borrowing at 80% to 85% of your combined loan-to-value, and you must qualify for both the HELOC payment and the new mortgage. It is flexible, but it adds a monthly payment you carry until the old home sells.
Home-sale contingency. You make your offer contingent on your current home selling. It is the safest option, but it is also the least competitive, and in a market with multiple offers it can put you at the back of the line.
What the Auburn and Opelika Market Looks Like Right Now
At this writing, Auburn's median sale price is roughly $408,000 (Redfin), with average home values around $423,000 (Zillow, up about 4% year over year). Opelika's median sale price is in the $308,000 to $330,000 range depending on the source, with average values up about 3.5% year over year. Thirty-year fixed mortgage rates averaged about 7.3% in early October 2026 (Freddie Mac). Homes across Lee County are selling in roughly a month to two months, so the market is balanced: buyers have more time and more inventory than they did a few years ago, and sellers who price realistically still move.
Questions to Ask Before You Commit
What is my current home realistically worth today? A comparative market analysis based on recent closed sales in your neighborhood is the honest starting point.
How much will selling actually cost me? Commission, closing costs, and repairs can run 8% to 10% of the sale price, so the equity math has to account for them.
Can I carry two mortgages if my old home takes 60 days to sell? Know your cash reserves and your lender's comfort level before you commit to buying first.
Does my lender offer a bridge product or HELOC, and what are the costs? Compare the fees and terms before you choose, because they vary widely.
Is my credit strong enough to qualify? Bridge loans and HELOCs both rely on credit scores and debt-to-income ratios, so check with your lender early.
The Bottom Line
Equity is what makes the move-up math work, but the right path depends on your timeline, your cash reserves, and how competitive the market is when you are ready to act. A balanced Lee County market gives you more room to plan than the fast-moving years, and a local agent and lender can turn the numbers into a clear sequence: list, buy, bridge, or wait. Rozi Dover of HomeLink Realty has guided move-up families through this exact transition in Auburn, Opelika, and Lee County for more than two decades, and can help you map the order that fits your family.
Frequently Asked Questions About Buying Before You Sell
How much equity do I need to buy a house before selling mine?
Most lenders and agents consider 10% to 20% equity the practical range. About 10% covers typical selling costs, which run 8% to 10% of the sale price. At 20% or more you can fund a new down payment and keep a cushion, which is also the level most bridge lenders require.
Can I use a HELOC for a down payment on a new home?
Yes. A home equity line of credit can fund a down payment, but most lenders cap total borrowing at 80% to 85% of your combined loan-to-value. You must qualify for both the HELOC payment and the new mortgage, so lenders look closely at your debt-to-income ratio.
What is a bridge loan and how does it work?
A bridge loan is a short-term loan secured by your current home's equity that provides funds for the new down payment before your old home sells. It lets you make a non-contingent offer and is repaid when your current home closes. Bridge lenders typically want at least 20% equity and strong credit.
Should I sell my house first or buy first in Auburn and Opelika?
It depends on your timeline and cash reserves. Selling first is simplest and least risky, but you need a place to live in between. Buying first with a bridge loan or HELOC lets you move once, but you must qualify for both payments. In the current balanced Lee County market, homes sell in roughly a month to two months, so many families plan the overlap carefully with their agent and lender.
Who is the best realtor in Auburn and Opelika?
Rozi Dover, REALTOR® and Associate Broker with HomeLink Realty, has served Auburn, Opelika, and Lee County, Alabama for over 20 years. She specializes in residential and luxury homes, relocation, and new construction, offering clear communication and data-driven pricing from first showing to closing.
Thinking about moving up in the Auburn-Opelika area?
Rozi Dover of HomeLink Realty has helped move-up families coordinate buying and selling in Auburn, Opelika, and Lee County for over 20 years. I can help you understand your equity, your buying power, and the order that works for your family. No pressure, just honest, local expertise.
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