When to sell vs keep
Separate the emotional question from two math questions
Divorce, death of a co-owner, or a move-up purchase often starts with one emotional question — should we keep this house? — that is really two math questions: what does monthly housing cost in each path, and what cash is left after each path? This guide uses only numbers you enter. It does not tell you to sell or keep.
Monthly cost comparison shows operating pressure: loan payment plus property costs you actually pay if you retain versus housing cost after you sell. Cash comparison shows liquidity: net proceeds after payoffs and transaction costs in a sell scenario versus one-time costs if you retain. Both matter; neither replaces tax, school, or custody decisions that belong with your own professionals.
Retain scenario — what to enter honestly
Monthly retain cost is loan payment plus ongoing property costs you expect if you keep the home: taxes, insurance, HOA, maintenance reserve — enter what you actually pay or budget, not a national average. One-time retain costs might include deferred repairs, buyout closing costs, or capital improvements you plan before staying. Gross cash proceeds on retain are often zero unless you are modeling a future refi cash-out; leave at zero if not applicable.
If you are modeling a divorce buyout to retain, include buyout closing costs in one-time retain costs and use the house buyout calculator for the buyout amount before you enter retain monthly payment after refinance.
Sell scenario — costs people forget
Sale scenario uses expected sale price, payoff of all liens, and transaction costs you enter — agent commission, transfer taxes, staging, and repairs you agree to fund before closing. Monthly housing after sale is whatever you will pay for replacement housing: rent, temporary stay, or a new purchase payment you enter separately.
Comparing retain monthly cost to sell monthly cost shows whether keeping the home is affordable month to month. Comparing cash after liens shows whether selling frees liquidity for the next chapter. A home can have positive equity but still strain monthly cash if retain costs are high.
What this comparison deliberately does not answer
Capital gains or step-up basis after death — ask a tax professional. Whether children should stay in the school district — your family decision. Whether a lender will approve the retain refinance — ask the lender with your DTI screen results. Whether FSBO or MLS marketing sells faster — see bestwaytofsbo.com when that bridge is live in the network.
Emotional attachment, commute changes, and neighborhood ties are real factors this arithmetic does not score. Use the calculator to bound the financial conversation, then decide with counsel and family input on the rest.
Using results in mediation or heir meetings
Bring the calculator permalink to a mediator, attorney, or co-owner conversation so everyone works from the same entered assumptions. If someone changes home value or costs, update the URL together on the call rather than arguing from memory.
Related paths: divorce funnel for buyout sequencing, successor guide when death triggered the question, assumption vs refinance guide when someone wants to keep the note structure.
Related: divorce funnel, successor guide, probate property options.
Printable sell vs keep worksheet
- Retain: monthly loan payment and property costs you actually pay
- Retain: one-time costs if you keep (repairs, buyout closing, deferred maintenance)
- Sell: expected sale price, lien payoffs, and transaction costs
- Sell: monthly housing cost after sale (rent or new purchase payment)
- Tax questions flagged for CPA — not answered on this site
- School or custody factors noted separately from the arithmetic
- Permalink from equity transition calculator retain/sell section attached
Frequently asked questions
- Does this guide tell me to sell or keep?
- No. It explains how to compare entered scenarios side by side. Tax, emotional, and school factors belong in your own decision with professionals.
- What costs are easy to forget in a sell scenario?
- Transaction costs, payoff amounts, and temporary housing after closing. Enter them explicitly in the calculator rather than guessing.