Resource Center

How do I show the sale of an existing home and purchase of a new one?

If your client plans to purchase a home or real estate in the future and finance part or all of the purchase, you can use the Home Purchase goal found on the Goals page of the Profile to illustrate the impacts of this goal on their financial plan.

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Whether or not the client will be using the sale of a current property to help finance the Home Purchase goal, start by adding the goal and its details on the Goals page. You can indicate the desired purchase year, target down payment amount, the total market value of the new property, the mortgage type, and the mortgage interest rate. (We will be adding fields shortly for property taxes, homeowner's insurance, and HOA or other fees.)

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Once you've added the goal, if the client plans to sell another asset to help fund the purchase of the new home, navigate to the Other Assets page and click on the asset they wish to sell. Click on Show Advanced at the bottom of the popup window to see the fields for selling the asset. Fill in the expected sale date to coincide with the purchase of the new property, indicate the net proceeds from the sale (sale price less brokers' fees and taxes, but NOT net of any mortgage on the property), and make sure to select Home Purchase as the earmark for the proceeds.

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Now you're ready to play around with the proposed goal. Navigate to the Financial Plan - Recommendations page first, then the Home Purchase goal (in the drop down menu at the top of the page). Open the What Ifs area and change the variables to make your recommendations to the client. Be sure to click on Save when you are finished making your recommendations!

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