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 you can use the Home Purchase goal to illustrate the impact of this goal on their financial plan.
  • Start by adding the goal and its details on the Profile > Goals page. You can indicate the desired purchase year, target down payment amount, the total market value of the new property, the mortgage type, mortgage interest rate and other applicable information.
  • 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.
  • Once done with the inputs you can 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!
  • Note: if you want the money from the sale of an existing home to go toward the purchase of a new home, the sale of the existing home and the goal of purchasing the new home need to be at least 1 year apart. Always make the goal of purchasing the new home the year after (or later) than the sale of the existing home.