Equity
Estimate the net proceeds available after mortgage payoff and selling costs.
Downsizing
Downsizing should improve the financial and lifestyle picture, not just reduce square footage.
A smaller home can reduce certain costs and unlock equity, but the decision should account for taxes, financing, location, maintenance, sale proceeds, and long-term goals.
Next-home payment
A lower purchase price does not automatically mean a lower monthly cost if taxes, HOA, insurance, or financing differ.
Cash purchase versus financing
Using all available equity may reduce debt while also reducing liquidity.
Property taxes
California property-tax rules can affect the financial outcome of a move.
Lifestyle
Location, accessibility, maintenance, family proximity, and future needs should be part of the decision.
Timing
Selling and buying should be coordinated so housing and financing transitions remain manageable.