Last Updated: January 2026
You've built equity in your starter home. Your family is growing. You're ready for more space, better schools, and a community with real amenities. But the jump from $400,000 to $700,000+ feels... big. Maybe even intimidating.
Here's the truth: You're not alone in feeling this way. Every week, we work with families across the North Texas market making this exact transition—specifically in the Alliance corridor between Dallas and Fort Worth. This includes Denton, Argyle, Northlake, Flower Mound, and surrounding communities in the Dallas-Fort Worth metroplex. And while it is a significant financial step, it's also one of the smartest wealth-building moves you can make—when done strategically.
This isn't just about buying a bigger house. It's about positioning your family for the next decade while making an investment that appreciates, not just depreciates. Let's walk through exactly how to make this jump with confidence, clarity, and a plan that protects your financial future.
Section 1: Understanding Your Financial Position
What You've Already Built (And Why It Matters More Than You Think)
If you purchased a home in the North Texas area between 2019 and 2023, you've likely built more equity than you realize. The Alliance corridor—including Denton, Argyle, Northlake, Flower Mound, and surrounding areas—has experienced consistent appreciation, with some neighborhoods seeing 30-50% gains over the past five years.
Here's what that means in real numbers:
If you bought a $350,000 home in 2020 with 5% down ($17,500), and it's now worth $450,000, you have approximately:
- Market equity: $100,000 (appreciation)
- Principal paid down: ~$15,000-20,000
- Total equity: $115,000-120,000
That equity is your launching pad. It's not just about having a down payment for your next home—it's about leverage.
The Hidden Wealth in Your Starter Home:
Most buyers underestimate what they've built because they're focused on their remaining mortgage balance rather than their equity position. When you purchased your first home, you weren't just buying shelter—you were buying a forced savings account that appreciates with the market.
The Real Numbers Behind a $700K Purchase
Let's break down what a $700,000 home actually costs monthly, because the sticker price isn't the full story.
Scenario 1: 20% Down ($140,000)
- Loan Amount: $560,000
- Monthly Payment (principal & interest at 6.5%): ~$3,540
- Property Taxes (estimated 2.5% annually): ~$1,458/month
- Homeowners Insurance: ~$250-350/month
- HOA (amenity-rich community): ~$150-250/month
- Total Monthly Cost: $5,400-5,600
Scenario 2: 10% Down ($70,000)
- Loan Amount: $630,000
- Monthly Payment (principal & interest at 6.5%): ~$3,983
- PMI: ~$315/month (until 20% equity reached)
- Property Taxes: ~$1,458/month
- Homeowners Insurance: ~$250-350/month
- HOA: ~$150-250/month
- Total Monthly Cost: $6,150-6,350
Scenario 3: 5% Down ($35,000) with Builder Incentives (Hypothetical Example)
- Loan Amount: $665,000
- Monthly Payment (with builder rate buy-down to 5.75%): ~$3,880
- PMI: ~$415/month
- Property Taxes: ~$1,458/month
- Homeowners Insurance: ~$250-350/month
- HOA: ~$150-250/month
- Total Monthly Cost: $6,150-6,350
Note: Interest rates and monthly payments shown are estimates based on current market conditions and assume approved credit. Your actual rate, payment, and loan terms will vary based on your credit profile, down payment, loan type, and lender. Contact us to connect with our preferred lender network for personalized calculations based on your specific scenario.
Income Requirements:
Lenders typically want your total housing costs (PITI + HOA) to be no more than 28-31% of your gross monthly income. For a $700K home:
- Conservative (28%): $19,285/month gross = $231,420/year
- Standard (31%): $17,419/month gross = $209,028/year
However, if you have minimal other debt (car payments, student loans, credit cards), lenders will often approve up to 43% debt-to-income ratio, meaning households earning $150,000-175,000 can qualify—especially with significant down payments from equity.
The $500K to $700K Payment Difference:
For comparison, a $500,000 home (20% down) at 6.5% costs approximately:
- Monthly Payment: $2,528
- Total with taxes/insurance/HOA: ~$4,500-4,700
The jump to $700K adds approximately $900-1,100/month to your housing costs.
When to Make the Move: Timing Is Everything
Not everyone should make this jump right now, even if they can afford it on paper. Here's how to know when the timing is right:
Life Stage Indicators:
- Children entering elementary school (capitalizing on full K-12 experience in top districts)
- Second or third child on the way (need the space)
- Career advancement with stable, increased income (not just a one-time bonus)
- Working remotely permanently (can justify a longer commute for better schools)
- Current home feeling cramped (quality of life suffering)
Market Timing Considerations:
The question we hear most: "Should we wait for interest rates to drop?"
Here's the reality: Home prices in desirable Alliance corridor communities typically rise 3-5% annually. If you wait a year for rates to potentially drop 0.5-1%, but prices increase $25,000-35,000 on a $700K home, you've lost ground.
The better strategy: Buy the right home at the right time in your life, then refinance when rates improve. You can't refinance your purchase price, but you can always refinance your rate.
Interest Rate Strategy:
Current market (January 2026):
- Conventional rates: 6.25-6.75%
- Builder rate buy-downs: 5.5-6.0% (with incentives)
- Jumbo loans: 6.5-7.0%
If rates drop to 5.5% in 18-24 months, you can refinance. But if home prices increase $40,000 while you wait, you've permanently lost that purchasing power.
Section 2: The Lifestyle Leap—What Changes at $700K+
What You Get for Your Money
The jump from $400K to $700K isn't just about square footage—it's about quality of life and long-term investment value.
Square Footage Comparison in the Alliance Corridor:
$400K Homes (Typical):
- 2,000-2,400 sq ft
- 3-4 bedrooms, 2-2.5 bathrooms
- 2-car garage
- 6,000-8,000 sq ft lot
- Builder-grade finishes
- Minimal outdoor space
- Standard community amenities (pool, playground)
$700K Homes (Typical):
- 3,200-4,200 sq ft
- 4-5 bedrooms, 3.5-4.5 bathrooms
- 3-car garage (often with additional storage)
- 8,000-15,000 sq ft lot (some up to 1 acre depending on neighborhood)
- Upgraded finishes throughout (hardwood, granite/quartz, designer fixtures)
- Game rooms, media rooms, dedicated office spaces
- Covered outdoor living spaces
- Premium master-planned community amenities (fitness centers, trails, parks, events)
Finishes and Build Quality:
At $700K+, you're typically getting:
- Upgraded insulation and HVAC systems (16+ SEER ratings)
- Better windows (Low-E, energy efficient)
- Higher-end appliances (often included in new construction)
- Thoughtful architectural details (coffered ceilings, built-ins, crown molding)
- Superior lot positioning (cul-de-sacs, greenbelts, premium views)
Master-Planned Community Amenities:
The difference between basic and premium communities becomes stark at this price point:
Basic Communities ($400K range):
- Neighborhood pool
- Small playground
- Basic HOA maintenance
Premium Communities ($700K+ range):
- Resort-style pools with lazy rivers and splash pads
- Full fitness centers with classes
- 20-100+ acre central parks
- Miles of hike-and-bike trails
- Community events (food trucks, movies, concerts)
- Sports courts (tennis, basketball, pickleball)
- Dog parks
- Event lawns and pavilions
Examples in the Alliance Corridor:
- Harvest by Hillwood (Argyle/Northlake): 1,200-acre agrihood with working farm, 1.5-mile Central Park, Harvest Hall amenity center featuring resort-style pools, Fit Barn workout facility, Farmhouse Coffee shop, year-round lifestyle programming with 300+ annual events
- Pecan Square (Northlake): Miles of hike-and-bike trails, multiple amenity centers including The Town Square and Jackson Hall, extensive community events calendar
- Furst Ranch (Flower Mound): 97-acre Central Park + 20-acre activity center
- Landmark by Hillwood (Denton): Nature-focused community with preserved green spaces including 1,100-acre nature preserve anchored by Pilot Knob, planned trails and parks, plus convenient access to future H-E-B grocery (opening 2027)
School District Differences and Investment Value:
This is where the $700K investment often pays the biggest dividends. Top-tier school districts don't just provide better education—they provide better long-term appreciation.
Argyle ISD:
- Consistently ranked top 10 in Texas
- Small class sizes (district growing but controlled)
- High graduation rates and college acceptance
- Strong extracurriculars and athletics
- Homes in Argyle ISD can appreciate 1-2% higher annually than surrounding districts
Denton ISD:
- Large district with diverse programs
- Growing rapidly with new schools being built
- More affordable entry points ($600K-700K for new construction)
- Solid academics with multiple high school options
Northwest ISD:
- Fast-growing district serving Justin, Northlake, and surrounding areas
- Modern facilities and strong technology integration
- Competitive athletics and fine arts programs
- Most affordable new construction options in the Alliance corridor ($400K-600K range in Justin/Northlake)
Lewisville ISD:
- Largest district in the area serving Flower Mound and Highland Village
- Flower Mound and Highland Village are highly sought-after areas with established charm and history
- Strong resale market with high demand in these mature neighborhoods
- Very limited new construction (most remaining land already developed)
- Any new construction in Flower Mound/Highland Village commands premium pricing ($700K+)
- Note: Parts of Flower Mound are served by both Lewisville ISD and Argyle ISD depending on location
The school district choice isn't just about your kids' education—it's about what buyers will pay when you sell in 7-10 years. Homes in top districts maintain value better during downturns and appreciate faster during growth periods.
Hidden Costs People Don't Consider
Before you fall in love with a $700K home, let's talk about the costs that surprise most first-time luxury buyers.
Utility Costs:
While newer homes often feature improved energy efficiency that can offset the cost of heating and cooling larger spaces, it's worth budgeting for the size difference from your current home. A 3,200 sq ft home will generally cost more to heat and cool than a 2,000 sq ft home, even with better insulation and HVAC systems.
Realistic monthly utility costs for $700K homes in North Texas:
- Summer (May-September): $250-400/month
- Winter (November-February): $150-250/month
- Spring/Fall: $100-150/month
- Annual Average: $200-250/month
Compare this to your current home's utility bills to project the difference.
Increased HOA Fees in Amenity-Rich Communities:
Basic neighborhoods: $50-100/month Premium master-planned communities: $150-300/month
That extra $100-200/month pays for:
- Pools and fitness center operations
- Landscaping and common area maintenance
- Community events and programming
- Trail maintenance
- Amenity center staffing
Maintenance and Landscaping:
A 2,000 sq ft home on a small lot? You can mow it yourself in 30 minutes.
A 3,500 sq ft home on a 12,000 sq ft lot with landscaping beds, trees, and covered patios? That's $150-300/month for professional landscaping services. Plus:
- Window cleaning for larger homes: $200-300 twice annually
- HVAC maintenance (now you have 2-3 units): $300-500 annually
- Pool maintenance (if applicable): $100-200/month
- Pest control for larger homes: $75-150/month
The Furnishing Budget Nobody Talks About:
You're moving from 2,000 to 3,500 square feet. Your current furniture will look lost. Budget realistically:
- Living room upgrade: $5,000-15,000
- Media/game room furnishing: $3,000-10,000
- Outdoor furniture for larger patio: $2,000-8,000
- Window treatments for bigger windows: $3,000-8,000
- Additional bedroom furniture: $2,000-5,000
- Total: $15,000-50,000 over first 1-2 years
Most buyers don't do this all at once, but it's important to know it's coming.
Property Tax Considerations:
Property tax rates vary by school district and municipality—we'll walk you through the specific impact on your monthly payment during our consultation, as this is highly individualized based on exemptions and exact location.
What you should know: property taxes are your second-largest housing expense after your mortgage payment, and they increase as property values rise (usually 3-5% annually in growing areas).
The Investment Perspective: Why $700K Homes Build Wealth Differently
Here's where the financial strategy becomes clear. Not all homes appreciate equally.
Appreciation Rates: $400K Homes vs $700K Homes in the Alliance Corridor
Historical appreciation data from the Alliance corridor (2019-2023 growth period):
- Entry-level homes ($300K-450K): 4-5% annual appreciation
- Move-up homes ($450K-600K): 5-6% annual appreciation
- Luxury homes ($700K+): 5.5-7% annual appreciation in premium communities
Important context: The Alliance corridor experienced strong appreciation from 2019-2023, but 2024-2025 brought market normalization with modest or flat appreciation as inventory increased. Looking ahead to 2026, most experts forecast 2-4% appreciation as the market stabilizes. These historical patterns provide context for long-term wealth-building potential, but appreciation rates vary significantly by year, specific community, and market conditions.
Why do luxury homes appreciate faster?
- Limited supply - There are far fewer $700K+ lots available in top school districts
- Buyer demand concentration - High-income households have more buying power and compete for fewer properties
- School district premium - Top districts command increasingly higher premiums over time
- Master-planned community advantages - Amenities and controlled development maintain value
- Land value - Larger lots appreciate independently of structures
The "Love Where You Live, Profit When You Leave" Principle Applied:
Let's model two scenarios over 10 years:
Scenario A: Stay in $400K Home
- Purchase price: $400,000
- Annual appreciation: 4.5%
- Value after 10 years: ~$622,000
- Equity gain (appreciation only): $222,000
- Plus principal paid down: ~$85,000
- Total equity: ~$307,000
Scenario B: Upgrade to $700K Home
- Purchase price: $700,000
- Annual appreciation: 6%
- Value after 10 years: ~$1,253,000
- Equity gain (appreciation only): $553,000
- Plus principal paid down: ~$125,000
- Total equity: ~$678,000
Difference: $371,000 in additional wealth over 10 years
Yes, you paid more monthly. But you built significantly more wealth. This is why we say "you make money when you buy, not when you sell." Buying the right home in the right community at the right time compounds your wealth.
Building Generational Wealth Through Strategic Upgrades:
Many families we work with aren't thinking about just this home—they're thinking about setting up their children for success. A $700K home in Argyle ISD, held for 15-20 years, could potentially be worth $1.5-2 million, fully paid off or nearly paid off.
That becomes:
- A down payment for your next home (or retirement property)
- College funding for your children
- Inheritance that gives your kids a head start
- Rental income if you choose to keep it
The key is making the strategic move early enough to capture the compounding appreciation, but not so early that you become house poor (more on that below).
Section 3: Strategic Buying—How to Maximize Your Investment
Timing Your Sale and Purchase: The Coordination Dance
One of the biggest stressors in upgrading homes is coordinating the sale of your current home with the purchase of your new one. Here are your options:
Option 1: Bridge Loans
- How it works: Temporary loan (6-12 months) that lets you buy before selling
- Pros: No moving twice, no contingency on your offer (stronger negotiating position)
- Cons: Expensive (7-9% interest), requires strong credit and income
- Best for: Buyers with significant equity and income who need flexibility
Option 2: Contingent Offers
- How it works: Your offer on the new home is contingent on selling your current home
- Pros: No double mortgages, less financial risk
- Cons: Sellers often reject contingent offers in competitive markets, creates timeline pressure
- Best for: Buyers with limited down payment funds beyond their current equity
Option 3: Rent-Back Strategies
- How it works: Sell your current home first, negotiate to rent it back for 30-60 days while you close on new home
- Pros: Cash in hand for down payment, no loan contingencies on your purchase
- Cons: Need to move quickly if rent-back denied, potential for two moves
- Best for: Most buyers—it's the cleanest strategy when possible
Option 4: Buy New Construction
- How it works: Contract on a new build (6-9 months out), list your current home 3-4 months before completion
- Pros: Perfect timing coordination, no moving twice, time to prepare current home for sale
- Cons: Need confidence in your home's sale timeline, less flexibility if build delays occur
- Best for: Buyers upgrading to new construction in master-planned communities (very common in Alliance corridor)
Best Months to List Your Current Home:
Historically, Alliance corridor data has shown:
- Peak selling season: March-June (highest prices, fastest sales)
- Good selling season: September-October (second wave of buyers)
- Slower season: November-February (fewer buyers, longer market times, potential for lower prices)
Important note: While these seasonal patterns have historically held true, the Dallas-Fort Worth metroplex has recently experienced bursts and additional waves of buying and selling activity that buck traditional norms. Specific pockets and communities in the Alliance corridor have defied national trends, with strong activity occurring outside typical peak seasons. Market timing should be evaluated based on current conditions—contact us for real-time Alliance corridor market data specific to your situation.
If market conditions align with historical patterns, listing your $400K home in April-May typically provides maximum exposure and price potential. Time your new home purchase closing for June-July.
Choosing the Right $700K+ Community: Your Options in the Alliance Corridor
Not all $700K homes are created equal. Location, school district, amenities, and long-term development plans matter enormously. Here's your comprehensive breakdown:
Argyle ISD Communities
Harvest by Hillwood (Argyle/Northlake)
- Price Range: $650K-1.2M+
- Lot Sizes: 60-80 ft in main sections, up to 100+ ft in premium areas
- Key Features:
- Harvest Hall amenity campus (97 acres)
- Established community (multiple phases complete)
- Mix of builders (Drees, Highland, Shaddock, David Weekley, etc.)
- Argyle ISD schools (elementary in neighborhood)
- Pros: Proven appreciation, established amenities, strong resale market
- Cons: Premium prices, HOA ~$200/month, some lots face neighbors closely
- Best For: Families wanting move-in ready luxury with established amenities
Treeline by Hillwood (Justin)
- Price Range: Mid-$300Ks-$500Ks+ (most affordable new construction in Alliance corridor)
- Lot Sizes: 40-50 ft lots
- Key Features:
- Newest Hillwood community (opened early 2025)
- Tree-lined streets and natural landscape preservation with winding creek
- Nature-forward design with mature trees
- Eight premier builders offering variety
- Northwest ISD schools
- Pros: Most affordable entry point into Hillwood communities, newer homes, larger lots for the price, room to breathe
- Cons: Amenities still in development, newer = less established community feel
- Best For: Buyers wanting Hillwood lifestyle at most accessible price point
Furst Ranch (Flower Mound)
- Price Range: High $700Ks-$2.5M+
- Lot Sizes: 60-70 ft (High Plains), 0.5-1 acre (Prairie Vista), 1-2 acres (Cross Timbers)
- Key Features:
- Brand new (presales began January 2026)
- 97-acre Central Park planned
- 20-acre Community Activities Center
- Nine premier builders
- Argyle ISD schools
- Future H-E-B grocery store
- Pros: Ground floor opportunity, diverse lot sizes, modern construction, premium amenities planned
- Cons: Nothing built yet (first homes 2027), amenities years away, construction activity for years
- Best For: Buyers willing to wait for completion who want newest available product
Denton ISD Options
Landmark by Hillwood (Denton)
- Price Range: $400K-$800K+ (wide range across multiple neighborhoods and phases)
- Lot Sizes: 50-70 ft standard, some larger estate lots
- Key Features:
- Massive 3,200-acre master-planned community
- Multiple builders and price points
- Extensive amenity package planned
- Denton ISD schools
- Close to I-35W and employment centers
- Pros: More affordable entry than Argyle ISD, huge variety of options, strong long-term potential
- Cons: Denton ISD not rated as highly as Argyle, long buildout timeline (20+ years)
- Best For: Buyers prioritizing value and convenience over top-tier school district
Northwest ISD Communities
Pecan Square (Northlake)
- Price Range: $500K-$850K+
- Lot Sizes: 50-60 ft standard, up to half-acre lots in premium sections
- Key Features:
- 1,200-acre master-planned community
- Award-winning Town Square with 22,000 sq ft amenities
- On-site Northwest ISD schools (Johnie Daniel Elementary open, Barksdale Middle opening 2026)
- Miles of hike-and-bike trails
- Multiple amenity centers including Jackson Hall
- Extensive community programming
- Pros: Established community with completed amenities, strong school district, variety of price points and lot sizes
- Cons: Limited inventory in some phases, HOA and MUD fees
- Best For: Families wanting completed master-planned community with top amenities and schools
Treeline by Hillwood (Justin) (Already detailed above in Argyle ISD section, but serves Northwest ISD)
- Most affordable new construction entry point in Alliance corridor
- Mid-$300Ks-$500Ks+
- Eight builders, 40-50 ft lots
- Nature-forward design
- Cons: Smaller lots in many newer sections, higher density in some areas
- Best For: Buyers wanting established infrastructure with good schools
Northlake Options
Pecan Square (Northlake)
- Price Range: $500K-850K
- Lot Sizes: 55-75 ft typical
- Key Features:
- Extensive trail system
- Multiple amenity centers
- Strong community programming
- Northwest ISD schools
- Mix of builders
- Pros: Lower entry price than Argyle ISD, excellent amenities, family-friendly
- Cons: Smaller lots, higher density, Northwest ISD vs Argyle ISD
- Best For: Families prioritizing amenities and community feel over largest lots
New Construction vs Resale at This Price Point
At $700K+, you have a genuine choice between new construction and resale. Both have advantages, and the right choice depends on your priorities and timeline.
New Construction Advantages in 2026:
The current market (January 2026) is particularly favorable for new construction buyers:
- Builder Incentives Are Strong
- Closing cost assistance: $10,000-25,000 (depending on price point)
- Interest rate buy-downs: 1-2% below market for first 1-2 years
- Structural upgrades included (many builders rolling previous upgrade packages into base price)
- Appliance packages (often negotiable)
- Warranty Coverage (Texas HB 2024)
- Texas law (HB 2024, effective June 2023) allows builders to limit liability to 6 years (vs. previous 10 years) IF they provide written warranty coverage with minimum terms:
- 1 year: Workmanship and materials
- 2 years: Plumbing, electrical, heating, and air-conditioning systems
- 6 years: Major structural components (foundations, load-bearing walls, beams, floor systems)
- Most Texas builders now provide this 6-year warranty structure to comply with HB 2024
- Some builders offer extended warranties beyond these minimums (ask about specifics)
- Energy Efficiency = Lower Operating Costs
- 16+ SEER HVAC systems (vs 13-14 SEER in older homes)
- Better insulation and windows
- Smart thermostats and energy monitoring
- LED lighting throughout
- Estimated savings: $100-200/month in utilities compared to 10-year-old homes
- Customization Opportunities
- Choose your floor plan, elevation, and lot
- Select finishes during design process
- Add structural options (extended patios, media rooms, extra storage)
- Build exactly what you want vs compromising on resale
- Timeline Coordination
- 6-9 month build gives you time to sell current home
- No competing with other buyers in bidding wars
- Locked-in price (no appraisal concerns)
New Construction Considerations:
- Build timeline uncertainty (weather delays, supply chain issues)
- Living through construction activity in neighborhood for years
- Landscaping and yard development takes time (new sod, young trees)
- Unproven resale market (no comparable sales yet)
- Potential for builder to discount future phases (affecting your value)
Resale Advantages:
- Move in immediately (no 6-9 month wait)
- Mature landscaping and trees already established
- See exactly what you're getting (no surprises)
- Negotiation on price possible (especially if home has been listed 60+ days)
- Established neighborhood feel
- Proven resale market with recent comparable sales
Resale Considerations:
- Competing with other buyers (especially for well-priced homes)
- Potential for needed updates/repairs
- Less flexibility on features and layout
- Older systems may need replacement in 5-10 years
- May not qualify for builder incentives and rate buy-downs
Why New Construction Is Offering Exceptional Value Right Now:
Builders need to move inventory and lots. With interest rates elevated, buyer pools have shrunk. This means:
- More negotiating power for buyers
- Better incentive packages than in 2021-2023
- More flexibility on lot premiums and upgrades
- Builders more willing to work with buyer requests
If you can coordinate the timeline and you're building in a quality master-planned community, new construction at $700K+ typically offers the best overall value in the current market (January 2026).
The Lots That Matter: Why Location Within the Community Is Everything
You can buy the same floor plan from the same builder, but the lot you choose will dramatically affect your daily experience and your resale value.
Premium Lot Characteristics (and Typical Premiums):
- Cul-de-sac Lots
- Typical Premium: $5,000-$15,000
- Benefits: Less traffic, safer for kids, larger lot shapes (pie-shaped)
- Best for: Families with young children
- Greenbelt/Open Space Backing
- Typical Premium: $10,000-$25,000
- Benefits: Privacy, no rear neighbors, better views, nature access
- Best for: Everyone (universally desirable)
- Water View/Pond Lots
- Typical Premium: $15,000-$35,000+
- Benefits: Premium views, natural ambiance
- Considerations: Potential for bugs, geese, maintenance responsibilities
- Best for: Buyers who value aesthetics and are okay with tradeoffs
- Oversized Lots
- Typical Premium: $15,000-$50,000+ (depending on size increase)
- Benefits: More yard space, privacy, better resale
- Best for: Buyers wanting space between homes, potential for pools/outdoor features
- Corner Lots
- Typical Premium: $0-$10,000 (sometimes no premium, sometimes slight)
- Benefits: More windows/natural light, side-entry garage options
- Considerations: More street exposure, maintain two sides of landscaping
- Best for: Buyers who want light and don't mind visibility
Lot Premiums: What's Actually Worth Paying For?
Based on resale data from Alliance corridor communities:
Always Worth It:
- Greenbelt backing ($15K-25K premium): You'll get this back 2-3X in resale value
- Cul-de-sac position ($10K-20K premium): Strong resale appeal, worth 1.5-2X in resale
- Oversized lots ($25K+ premium): In land-constrained areas, worth 2-3X in resale
Sometimes Worth It:
- Water views (depends on maintenance and view quality)
- Corner lots (depends on street traffic and buyer preferences)
- Park-front lots (depends on how close and how busy the park is)
Often Not Worth Premium:
- "Golf cart distance" to amenities (nice but doesn't affect resale meaningfully)
- Specific street names or section numbers (cosmetic, no real value difference)
- Higher elevations without view benefits (you're paying for perception, not value)
Future Development Concerns: What Will Be Built Near You?
Before you fall in love with a lot, find out:
- What's planned for empty lots nearby (future homes? Retention pond? Parks?)
- Where are schools planned? (Adjacent to a future elementary = noise but convenience)
- Are there future commercial sections? (Check master plan for retail locations)
- Is there a major road expansion planned near your lot?
Many buyers get surprised by a busy street or retention pond that wasn't there when they bought. Review the master plan carefully and ask your agent to highlight future phases.
Resale Value by Lot Position:
Highest Resale Appeal:
- Cul-de-sac with greenbelt backing
- Interior lot with greenbelt backing
- Oversized interior lot
- Cul-de-sac without greenbelt
- Interior lot (standard)
Moderate Resale Appeal: 6. Corner lot (quiet street) 7. Pond/water view lot 8. Park-adjacent lot
Lower Resale Appeal: 9. Busy street-facing lots 10. Lots backing to main roads 11. Lots adjacent to commercial/retail
Choose your lot like you're already selling it. The best lots sell fastest and for the most money when it's time to move again.
Section 4: Financing Your Luxury Home
Loan Products at $700K: Understanding Your Options
Conventional Loans (Up to $806,500 in 2026)
- Best for: Most buyers with 10-20% down
- Current rates (Jan 2026): 6.25-6.75%
- Down payment: As low as 3%, but 10-20% typical for luxury buyers
- PMI required: If less than 20% down (can be removed at 20% equity)
- Pros: Most flexible, competitive rates, widely available
- Cons: Conforming loan limits (check current limit for your county)
Jumbo Loans ($806,501+)
- Best for: Buyers purchasing above conforming loan limits
- Current rates (Jan 2026): 6.5-7.0%
- Down payment: Typically 15-20% minimum
- PMI: Not applicable (but higher rates reflect increased risk)
- Pros: Can purchase above conforming limits
- Cons: Stricter qualification standards, higher rates, larger reserves required
Portfolio Loans (Non-Conforming)
- Best for: Self-employed buyers, unique income situations, high net worth individuals
- Rates: Vary widely (6.5-8.0%)
- Down payment: 20-30% typical
- Pros: More flexible qualification standards, can work with non-traditional income
- Cons: Higher rates, fewer lenders offer them, more documentation
Physician Loans and Professional Programs
- Best for: Doctors, dentists, sometimes lawyers and other professionals
- Rates: Competitive (6.0-6.5%)
- Down payment: As low as 0-5%
- No PMI: Even with low down payment
- Pros: Recognizes future earning potential, minimal down payment required
- Cons: Limited to specific professions, not all lenders offer
Paying Points vs Higher Rate Strategy
At $700K, the decision to buy points becomes more significant:
Example on $700K loan:
- Buying 1 point (1% of loan amount): $7,000
- Rate reduction: ~0.25%
- Monthly payment savings: ~$100/month
- Break-even: 70 months (5.8 years)
When to buy points:
- You plan to stay 7+ years
- You have cash but want lower monthly payments
- Rates are historically low (lock in even lower rate)
When NOT to buy points:
- You might refinance in 3-5 years
- Your cash is better deployed elsewhere (investing, emergency fund)
- Rates are high (you'll refinance anyway when they drop)
In the current environment (January 2026), most buyers should NOT buy points. Rates will likely be lower in 2-3 years, making refinancing probable.
Credit Optimization: Score Thresholds That Matter
At $700K, your credit score affects not just approval but pricing:
Credit Score Tiers:
- 780+: Best rates available (no difference between 780 and 820)
- 740-779: Still excellent, minimal rate increase (~0.125%)
- 700-739: Good rates, slight increase (~0.25-0.375%)
- 680-699: Higher rates (~0.5-0.75% increase), fewer loan options
- Below 680: Difficult to qualify for conventional at this price point
Quick Credit Optimization Strategies (90 Days Before Applying):
- Pay down credit card balances below 10% of limits (increases score 20-40 points)
- Don't close old credit cards (decreases average age of accounts)
- Avoid new credit inquiries (each hard pull can reduce score 5-10 points)
- Dispute any errors on credit report (check all three bureaus)
- Make all payments on time (even one late payment can drop score 60-100 points)
Debt-to-Income Strategies Before You Apply:
Lenders look at two DTI ratios:
- Front-end DTI: Housing costs only (should be under 28-31%)
- Back-end DTI: All debts including housing (should be under 43%)
If you're borderline on DTI:
- Pay off car loans before applying (frees up monthly obligations)
- Don't take on new debt (furniture loans, new cars) before buying
- Increase income (bonuses, second jobs can count with documentation)
- Consider larger down payment (reduces monthly payment)
When to Pay Off Debt vs Keep Liquidity:
Common question: "Should I pay off my car loan to qualify?"
Pay off debt if:
- It allows you to qualify for the loan amount you need
- Interest rate is higher than you'd earn investing the cash
- You still have 6+ months emergency fund after paying it off
Keep the debt if:
- You qualify anyway with the debt included
- Interest rate is low (under 4%)
- Paying it off depletes your emergency fund
- You'd need to liquidate investments at a loss
Working with the Right Lender
Not all lenders are created equal at the $700K price point.
Questions to Ask Potential Lenders:
- "How many $700K+ loans have you closed in the Alliance corridor in the past year?"
- You want someone who understands local appraisals and market timing
- "What's your average time from application to clear-to-close?"
- Should be 25-35 days (anything over 40 days is a red flag)
- "Do you keep loans in-house or sell them immediately?"
- Some lenders service loans long-term (can be better for future refinancing)
- "What builder relationships do you have?"
- Lenders with strong builder relationships often have better incentive access
- "What's your backup plan if the appraisal comes in low?"
- Shows they've handled this before and have strategies
The Advantage of Experienced Local Lenders:
National banks offer competitive rates, but local lenders offer:
- Faster turnarounds (know local appraisers, title companies)
- Better communication (you're not loan #47293 in a national queue)
- Relationship-based problem solving (if issues arise, they work harder to fix them)
- Understanding of local market nuances (MUD taxes, HOA approvals, etc.)
Pre-Approval vs Pre-Qualification (It Matters More at This Price Point):
Pre-Qualification:
- Soft pull of credit
- Based on stated income/assets
- Not verified
- Builders won't take you seriously
Pre-Approval:
- Hard pull of credit
- Income verified (pay stubs, tax returns, bank statements)
- Assets verified
- Underwriter-reviewed
- Gives you negotiating power
At $700K, don't even tour communities without a full pre-approval. Builders won't engage seriously with unqualified buyers, and you'll waste time looking at homes you may not be able to purchase.
Our Strategic Lending Partners
We work closely with trusted lenders who specialize in the Alliance corridor market and understand luxury home financing. Our collaborative approach ensures a smooth, seamless process from pre-approval through closing, with lenders who know how to structure deals that maximize your buying power while keeping your monthly costs manageable.
These aren't just referrals—these are relationships we've built over years of working together on complex transactions. They know:
- How to navigate builder financing incentives
- Local appraisal challenges and solutions
- Timeline coordination for buyers selling and buying simultaneously
- Creative financing structures for self-employed and high-net-worth buyers
When you work with us, you get direct access to lenders who will prioritize your loan and communicate directly with our team to ensure nothing falls through the cracks.
Section 5: Common Mistakes First-Time Luxury Buyers Make
Learn from others' mistakes. Here are the five costliest errors we see—and how to avoid them.
Mistake #1: Buying Too Much House Too Soon (Becoming "House Poor")
What it looks like: A couple earning $200K qualifies for a $750K home. They fall in love with a $725K house with every upgrade imaginable. They put 10% down. Their monthly payment (with taxes, insurance, HOA) is $6,300. After taxes, their take-home is about $11,500/month. That's 55% of their take-home going to housing.
They move in and realize:
- They can't afford to furnish rooms (they sit empty for a year)
- They can't take vacations
- A $3,000 HVAC repair causes panic
- They're stressed about money constantly
- One job loss would be catastrophic
This is being house poor: You can technically afford the payment, but you can't afford your life.
How to avoid it:
- Use the 25-28% NET income rule (not gross)
- If you take home $11,500/month, your housing should be $2,875-3,220
- This leaves room for savings, retirement, life, emergencies
- Stress test your budget
- Live on your projected new budget for 3 months before buying
- If you can't save the payment difference now, you can't afford it later
- Maintain flexibility for career changes
- Don't assume your income is guaranteed forever
- What if you want to start a business? Take a lower-paying job you love?
- Your house shouldn't trap you in a job you hate
- Real talk about job security at this payment level
- Can you afford this on one income if needed?
- Do you have 6-12 months reserves?
- Are you in a stable industry?
The Sweet Spot: Buy 80-90% of what you qualify for. This gives you breathing room, financial flexibility, and the ability to actually enjoy your home instead of stressing about the payment.
Mistake #2: Ignoring Resale Value
You're not buying your forever home—you're buying your 7-10 year home. Make decisions accordingly.
The Most Expensive Home on the Street Problem:
If you buy the $750K home in a neighborhood where most homes are $600-650K, you'll struggle to get your money back. Appraisals are based on recent comparable sales. If there aren't comps to support your price, you're stuck.
How to avoid it:
- Buy in the middle-to-upper-middle of the community's price range
- Look at 3-5 recent sales (within 6 months) in the neighborhood
- Ensure there are homes that have sold within 10% of your purchase price
Over-Customization in New Builds:
Builder design centers are dangerous. Everything looks beautiful, and you want it all:
- $15K upgraded flooring
- $8K gourmet kitchen package
- $12K outdoor living extension
- $5K smart home package
- $6K lighting upgrade
- Total: $46K in upgrades
Here's the problem: You get back maybe 50-60% of upgrade costs in resale value. That $46K in upgrades adds maybe $25K to your home's value.
Smart upgrade strategy:
- Always worth it: Kitchen upgrades (cabinets, countertops, appliances)
- Usually worth it: Master bath upgrades, flooring upgrades, structural additions (rooms, patios)
- Sometimes worth it: Lighting, landscaping allowances
- Rarely worth it: Media packages, excessive technology, cosmetic exterior changes
Pool Decisions and North Texas Reality:
Pools are polarizing. In North Texas:
- Weather: You use a pool 4-5 months per year realistically
- Maintenance: $100-200/month + $2,000-5,000 annually for repairs/equipment
- Resale: 40-50% of buyers WON'T want a pool (maintenance burden, safety concerns with young kids)
- Cost: $40,000-80,000 for quality installation
Our advice: Don't put in a pool thinking it adds value dollar-for-dollar. Put in a pool because YOU want to use it for 7-10 years. It's a lifestyle choice, not an investment.
Mistake #3: Underestimating Ongoing Costs
We covered this earlier, but it bears repeating with real examples:
Example Alliance Corridor Homeowner Costs (3,400 sq ft home, $720K purchase):
Monthly:
- Mortgage (P&I): $3,850
- Property taxes: $1,500
- Insurance: $300
- HOA: $225
- Utilities (average): $225
- Landscaping: $200
- Pest control: $80
- Total: $6,380/month
Annual one-time costs:
- HVAC maintenance: $400
- Pool maintenance (if applicable): $3,000
- Window cleaning: $400
- Pressure washing: $300
- Tree trimming: $500
- HOA special assessments: $0-1,000
- Total: $4,600-5,600/year ($383-467/month)
Real monthly cost of ownership: $6,760-6,850
Compare this to the mortgage payment alone ($3,850), and you see why buyers get surprised. The payment is only 57% of the true cost.
The "Furnishing Budget" Nobody Talks About:
Your current couch looks ridiculous in a 20-foot-wide living room. Your dining table that seated 6 looks lost in a space designed for 10. Your bedroom furniture disappears in a master suite.
Budget realistically:
- Year 1: Primary living spaces (living room, master bedroom, kitchen/dining) = $15,000-25,000
- Year 2: Secondary spaces (game room, media room, guest rooms, outdoor furniture) = $10,000-20,000
- Ongoing: Window treatments, art, rugs, decor = $5,000-10,000
Total over first 2-3 years: $30,000-55,000
Many buyers finance this on credit cards at 18-24% interest. Don't. Budget for it upfront, buy slowly, and prioritize.
Mistake #4: Not Leveraging Builder Relationships
Here's what most buyers don't know: When you walk into a builder's model home without an agent, the builder's sales rep works for the builder. They want the highest price with the fewest concessions. You have no representation.
Why Going Direct to Builders Without Representation Costs You Money:
Builders budget a 3% buyer agent commission into their pricing. If you come without an agent, that 3% doesn't go to you—it goes to the builder's bottom line. You pay the same price but lose all negotiating power.
When you work with an agent who specializes in new construction:
- We know which builders have inventory to move
- We know which communities are offering the best incentive packages
- We know which lot premiums are negotiable
- We negotiate upgrades and concessions builders don't advertise
- We protect you during the building process (change orders, quality issues, delays)
Builder Closing Cost Assistance and Rate Buy-Down Programs:
Current market (January 2026) examples:
- Highland Homes: Up to $20K in closing costs OR 2-1 buy-down OR 1% rate buy-down
- David Weekley: $15K design studio credit + 1% rate reduction (terms vary)
- Drees Homes: $25K in incentives (flexible use)
These are negotiable and stackable in some cases. We know how to maximize these packages.
How to Maximize Current Incentive Packages:
- Ask for multiple options - Closing costs vs rate buy-down vs upgrades
- Compare apples to apples - A 2-1 buy-down vs 1% permanent reduction over 30 years has very different values
- Negotiate lot premiums - If a builder is slow-selling, lot premiums become flexible
- Time your contract - End of quarter/year = most flexibility from builders
Upgrade Strategies That Add Value vs Vanity Upgrades:
Upgrades that add value:
- Kitchen: Cabinets, countertops, backsplash, appliances (70-80% return)
- Flooring: Hardwood, tile over carpet (60-70% return)
- Master bath: Dual vanities, soaking tub, tile shower (60-70% return)
- Structural: Extended patio, additional rooms, garage storage (70-80% return)
Vanity upgrades (poor return):
- Ceiling treatments and excessive crown molding (30-40% return)
- Smart home packages beyond basics (20-30% return)
- Upgraded light fixtures throughout (40-50% return)
- Exterior stone/brick beyond base plan (40-50% return)
Focus your upgrade budget on kitchen, flooring, and master bath. These drive resale value.
Why New Construction Is Offering Exceptional Value Right Now:
With elevated interest rates reducing buyer pools, builders are motivated:
- Inventory is sitting longer
- Lot sales are slower
- Builders need to hit revenue targets
This means:
- Better incentives than 2021-2023 (when builders had no incentive to negotiate)
- More flexibility on lot premiums
- More willing to work with buyer timelines
- Better opportunities to negotiate upgrades
If you've been waiting for "the right time" to buy new construction in a master-planned community, 2026 is that time.
Mistake #5: Letting Emotions Override Strategy
We understand: You walk into a home and it feels perfect. The kids run through and pick their rooms. You envision Christmas mornings and backyard BBQs. It's easy to fall in love.
But emotion is expensive in real estate.
"Dream Home Syndrome":
When you convince yourself "this is THE ONE," you lose negotiating power. You:
- Overpay because you "can't lose it"
- Accept terms that favor the seller
- Ignore red flags (foundation issues, bad lot position, overpriced)
- Make financial decisions you'll regret
How to avoid it:
- Tour 15-20 homes before making an offer - You'll realize there are many homes that could work
- Sleep on it - Never make an offer the same day you see a home
- Run the numbers first - Can you truly afford it without stress?
- Get a third-party opinion - What does your agent see that you don't?
When to Walk Away from a Deal:
- The builder/seller won't negotiate on things that matter to you
- You feel pressured or rushed
- The numbers don't work without financial gymnastics
- Your gut says "something is off" (trust it)
- A better opportunity is 30 days away (and you can wait)
Keeping Your Investment Mindset:
Every time you're tempted to make an emotional decision, ask:
- "Would I buy this if I planned to sell it in 3 years?"
- "Will a future buyer value this as much as I do?"
- "Am I buying this for me, or am I buying this for my ego?"
The best homes are ones you love AND that make financial sense. Don't settle for just one.
Section 6: The Miranda Realty Team Approach
This isn't about selling you—it's about showing you how strategic buyers approach this transition differently than emotional buyers. Here's our proven process:
Our Strategic Buying Process
Step 1: Financial Reality Check (30-Minute Consultation)
Before we ever tour homes, we sit down and get real about your numbers:
We'll calculate:
- Your current home's likely sale price (based on recent comps in your neighborhood)
- Your net proceeds after sale (payoff, closing costs, agent commissions)
- Your down payment buying power
- Your monthly payment at different price points ($650K, $700K, $750K)
- Your comfortable payment range (not max qualification—comfortable range)
We'll discuss:
- Your timeline (when can you list? When do you need to move?)
- Your must-haves vs nice-to-haves
- School district priorities
- Commute considerations
- Long-term plans (planning to stay 5 years? 10 years? 20 years?)
Outcome: You'll leave with clarity on what you can actually afford, what you should target, and whether now is the right time.
Step 2: Market Intelligence Briefing
Once we know your budget and priorities, we provide a comprehensive market brief:
Current inventory analysis:
- What's actively for sale in your target communities right now
- How long homes are sitting on market (indicates pricing and negotiation room)
- Recent price reductions (shows motivated sellers or overpricing)
Builder incentive landscape:
- Which builders are offering the strongest packages
- Where inventory is sitting (slow-moving communities = negotiation opportunities)
- Coming-soon releases and lot releases
Coming-soon properties:
- Homes hitting the market in next 2-4 weeks
- Builder pre-releases before public availability
- Off-market opportunities through our network
This isn't public MLS data—this is insider intelligence from our daily presence in these communities.
Step 3: Community Deep Dives
We don't just drive you around and unlock doors. We educate you on why communities differ and how that affects your investment.
We'll tour 3-5 communities matching your criteria and show you:
The insider details buyers miss:
- Which lots back to future roads or retention ponds
- Where schools are planned (and how that affects your lot)
- Which builders have quality issues (we see the warranty claims)
- Which neighborhoods within the community have the strongest resale
- How HOA management differs (some are great, some are nightmares)
True cost of ownership differences:
- MUD tax breakdowns (some neighborhoods have them, some don't)
- HOA fee comparisons and what's actually included
- Property tax projections by school district
- Utility cost differences (some communities are higher than others)
We'll explain:
- Why Harvest commands a premium over Pecan Square (despite similar amenities)
- Why Furst Ranch lots might appreciate faster than Landmark (scarcity + Argyle ISD)
- Why timing your entry matters (early phases vs late phases)
You'll leave understanding not just what you like, but what makes financial sense.
Step 4: Strategic Offer and Negotiation
This is where our expertise pays dividends—often literally.
Leverage our builder relationships:
- Direct lines to builder VPs and regional managers (not just sales reps)
- Knowledge of which builders need to close deals this quarter
- Relationships that get you better lot positions and release priorities
Negotiate upgrades and concessions:
- We know which upgrades builders markup 300% (and will discount)
- We know how to structure offers to maximize incentives
- We know when to ask for lot premium reductions vs closing costs vs rate buy-downs
Coordinate your sale and purchase timeline:
- Structure your current home listing to align with new home closing
- Negotiate rent-backs if needed
- Bridge financing coordination with our lending partners
- Backup plan if timelines shift (they always do)
Recent example: Buyer qualified for $725K but loved a $750K home. Builder wouldn't budge on price, but we negotiated:
- $12K lot premium waived
- $15K in closing costs
- $8K in design studio upgrades
- Total concessions: $35K (bringing effective price to $715K)
That's the power of representation and relationships.
Step 5: Close and Profit (Exit Strategy from Day One)
Most agents stop at closing. We're thinking about your resale the day you buy.
During the build/purchase process:
- Quality control walkthroughs (we catch issues before closing)
- Upgrade decisions filtered through resale lens
- Lot position optimized for future value
At closing:
- Ensure all incentives are properly credited
- Verify all upgrades are completed as contracted
- Set expectations for first-year maintenance
After closing:
- Annual check-ins on market value
- Refinance alerts when rates drop
- Strategic advice on improvements that add value
- Exit strategy planning (when to sell for maximum profit)
We're not just transaction-focused—we're relationship-focused. Your success is our success, and we measure success by your long-term wealth building, not just closing deals.
Section 7: Your Action Plan
Stop thinking about it and start doing it. Here's your step-by-step timeline:
90 Days Before You're Ready to Move
Week 1-2:
- Get pre-approved (even if you're not listing your current home yet)
- Contact our recommended lenders
- Gather documents (2 years tax returns, 2 months pay stubs, 2 months bank statements)
- Pull your credit report and dispute any errors
- Start tracking Alliance corridor inventory
- Set up saved searches on major real estate sites
- Follow builder social media for new releases
- Drive by communities on weekends to get a feel
Week 3-4:
- Review your current home's equity position
- Look up recent sales in your neighborhood
- Calculate estimated net proceeds
- Determine available down payment
- Connect with Miranda Realty Team for market briefing
- 📧 [email protected]
- 📱 940.577.2051
- Schedule 30-minute buyers consultation
Week 5-8:
- Begin light prep on current home (if selling)
- Deep clean
- Minor repairs (leaky faucets, loose handles, etc.)
- Touch-up paint
- Declutter and organize
- Research school districts seriously
- Visit Argyle ISD, Denton ISD, Northwest ISD websites
- Look at test scores and ratings
- Drive to schools from target neighborhoods (time the commute)
Week 9-12:
- Tour communities with us
- Block out 3-4 hours
- Bring questions
- Take photos and notes
- Tour models and available homes/lots
60 Days Before You're Ready
Week 1-2:
- Narrow down to 2-3 target communities
- Meet with lender to finalize strategy
- Lock or float decision
- Final document submission
- Pre-approval letter updated
Week 3-4:
- If new construction: Select lots and floor plans
- If resale: Active home search begins
- Prepare current home for listing (if selling)
- Professional photos scheduled
- Listing agreement signed
- Marketing plan reviewed
Week 5-8:
- List current home (if strategy calls for it)
- Continue viewing new inventory
- Prepare to make offers
30 Days Before You're Ready
Week 1-2:
- Submit offers on new construction (if pre-building)
- Compete for resale homes (if buying existing)
- Negotiate terms and concessions
- Enter contract
Week 3-4:
- Complete option period inspections (resale)
- Finalize design studio selections (new construction)
- Order appraisal
- Submit final documents to lender
The Week You Move
- Final walkthrough (verify everything is as contracted)
- Wire funds for closing
- Closing day!
- Utility transfers
- Moving company coordination
- Change of address notifications
- Celebrate your strategic investment!
This timeline assumes a relatively smooth process. Add buffers for delays (there are always delays).
The Wealth-Building Move
Let's bring this full circle.
Making the jump from $400K to $700K+ isn't just about getting a bigger house. It's not even just about better schools or nicer amenities (though those are great).
It's about strategic wealth building.
When you buy the right home, in the right community, at the right time, with the right financing, you're not just upgrading your lifestyle—you're setting up your family for generational wealth.
Over 10-15 years in a premium Alliance corridor community:
- Your home appreciates faster than entry-level properties
- You're in a top school district that commands increasing premiums
- You're building equity in an asset that outpaces inflation
- You're positioning your family to either sell and upgrade again, or fully own a valuable asset
The power of "buying right" at the $700K level (using historical average rates):
A $700K home in a premium Alliance corridor community:
- Year 0: $700,000
- Year 10: ~$1,050,000 (4% avg appreciation)
- Year 15: ~$1,260,000 (4% avg appreciation)
- Equity built: $560,000+ (including principal paydown)
Compare that to staying in a $400K home:
- Year 0: $400,000
- Year 10: ~$590,000 (4% avg appreciation)
- Year 15: ~$710,000 (4% avg appreciation)
- Equity built: $310,000+ (including principal paydown)
The difference: ~$250,000 in additional wealth over 15 years.
Note: These projections use conservative 4% annual appreciation rates. Actual appreciation can vary significantly based on specific community, market conditions, and economic factors. Historical performance from 2019-2023 showed higher rates (5-7%), while 2024-2025 saw market normalization. Long-term real estate appreciation in growing North Texas markets has historically outpaced inflation.
That's the cost of not making the strategic move.
How This Positions Your Family for the Next 10+ Years
Beyond just the numbers, buying the right luxury home positions you for:
Educational advantages:
- Your children get 10-12 years in top-rated schools
- Higher college acceptance rates and scholarship opportunities
- Network effects (their peers are also high-achieving)
Quality of life improvements:
- Space to work from home (dedicated offices)
- Room for family to visit (guest rooms)
- Ability to host and entertain (larger living spaces)
- Access to resort-style amenities (pools, fitness, trails)
- Safer neighborhoods with lower crime rates
Financial flexibility:
- Equity available for HELOCs if needed
- Strong resale market when you're ready to move
- Options to convert to rental if relocating (cash flow positive in most cases)
Network and community:
- Neighbors with similar values and life stages
- Professional networking opportunities
- Built-in social events and activities
- Sense of belonging in master-planned communities
Why the Alliance Corridor Specifically Rewards This Strategy
Not all $700K homes are created equal. Location matters enormously.
The Alliance corridor (Denton, Argyle, Northlake, Flower Mound, Trophy Club) has specific advantages:
- Limited remaining land for large-scale development - Supply constraint drives appreciation
- Multiple top-rated school districts - Argyle, Northwest, Denton ISDs all strong options
- Employment center proximity - Alliance Texas corridor is DFW's largest employment hub outside downtown
- Major infrastructure investments - Highway expansions, new schools, commercial development all support growth
- Master-planned community concentration - Hillwood, Starwood Land, and other institutional developers create lasting value
When you buy in this corridor, you're buying into a region that has consistently outperformed broader DFW appreciation rates.
Frequently Asked Questions
Can I afford a $700K home if I make $150K/year?
Potentially, yes—but it depends on several factors:
- Your down payment (20% = $140K needed)
- Your other debts (car loans, student loans, credit cards)
- Your debt-to-income ratio (total debts shouldn't exceed 43% of gross income)
At $150K/year:
- Gross monthly income: $12,500
- Maximum monthly debt payments (43% DTI): $5,375
- If you have minimal other debt, a $700K home is feasible with 10-20% down
However, just because you can doesn't mean you should. We'd recommend being closer to $175-200K household income to comfortably afford $700K without being house poor.
Should I wait for rates to drop before upgrading?
Probably not. Here's why:
If you wait 12 months for rates to potentially drop 0.75% (big assumption), but home prices increase 4% ($28,000 on a $700K home), you've lost ground.
Better strategy:
- Buy now when inventory and selection are better
- Lock in your purchase price (can't refinance that)
- Refinance when rates drop (you CAN refinance your rate)
Trying to time the market perfectly usually results in missing the opportunity altogether. Buy when it's right for your family, then optimize the financing later.
Is it better to buy new construction or resale at $700K?
In the current market (January 2026), new construction offers exceptional value because:
- Builder incentives are strong ($10K-25K in closing costs, rate buy-downs)
- Energy efficiency lowers operating costs significantly
- 2-10 warranty coverage under Texas law provides peace of mind
- You can customize to your preferences
- You're building equity from day one (vs buying someone else's equity)
However, resale makes sense if:
- You need to move immediately (no 6-9 month build wait)
- You find a significantly underpriced home
- You prefer mature landscaping and established neighborhoods
- You're okay with potentially needed updates/repairs in 5-10 years
For most buyers at this price point in 2026, new construction is the better value.
How much equity do I need from my current home?
For a comfortable jump to $700K, we recommend:
- Minimum: $70,000 (10% down)
- Ideal: $105,000-140,000 (15-20% down)
- Optimal: $140,000+ (20% down, no PMI)
If you're below $70K, you'll need additional cash savings or should consider a lower price point ($600-650K range).
Most buyers who purchased $350-450K homes in the Alliance corridor in 2019 or earlier have built $100K-150K in equity through appreciation and principal paydown.
What's the real monthly payment on a $700K home in North Texas?
Here's the breakdown with current rates (January 2026):
With 20% down ($140K), 6.5% rate:
- Principal & Interest: $3,540
- Property Taxes (2.5%): ~$1,458
- Homeowners Insurance: ~$300
- HOA (amenity-rich community): ~$200
- Total: $5,498/month
With 10% down ($70K), 6.5% rate:
- Principal & Interest: $3,983
- PMI: ~$315
- Property Taxes: ~$1,458
- Homeowners Insurance: ~$300
- HOA: ~$200
- Total: $6,256/month
Don't forget ongoing costs (utilities, maintenance, landscaping) add another $400-600/month.
Do I need 20% down on a luxury home?
No. You can purchase a $700K home with as little as 5-10% down ($35K-70K). However:
Benefits of 20% down:
- No PMI (saves $300-400/month)
- Lower interest rates (typically 0.25% better)
- Stronger negotiating position with sellers/builders
- Lower monthly payment
- More equity cushion if market softens
When to put less than 20% down:
- Builder is offering strong incentives that offset PMI costs
- You want to keep more cash for furnishing and improvements
- You're confident you'll refinance within 2-3 years (to remove PMI)
- Investment opportunities exist for your cash that outperform mortgage interest
Most buyers at this price point aim for 15-20% down as a balance between monthly payment and liquidity.
Should I sell my current home first or buy first?
This depends on your financial position and risk tolerance:
Sell first if:
- You have limited down payment funds (need the equity)
- You're uncomfortable carrying two mortgages
- You want the strongest negotiating position on your purchase (no contingencies)
- Your current home isn't in high demand (might take 60+ days to sell)
Buy first if:
- You have substantial savings beyond your home equity
- You can qualify for both mortgages simultaneously
- You need to avoid moving twice
- You're in a competitive market and contingent offers get rejected
Best of both worlds: New construction with 6-9 month build time. Contract on the new build, then list your current home 3-4 months before completion. Perfect timing coordination.
How long does it take to sell a $400K home in North Texas?
In the Alliance corridor (as of January 2026):
Well-priced homes: 15-30 days Fairly priced homes: 30-45 days Overpriced homes: 60-90+ days
Factors that affect timeline:
- Time of year (spring sells fastest)
- Condition of home
- Competition in your price range
- Photography and marketing quality
- Pricing strategy
With our marketing approach, most well-priced $400-500K homes sell within 21 days.
What builder incentives are available at the $700K price point?
Current incentives (January 2026) include:
Most common:
- Closing cost assistance: $10,000-25,000
- Interest rate buy-downs: 1-2% below market for 1-2 years
- Design studio credits: $5,000-15,000
- Appliance packages (often negotiable)
Less common but available:
- Free lot premium waivers ($10K-30K value)
- Free structural upgrades (covered patios, additional rooms)
- HOA dues paid for first year
These vary significantly by builder, community, and how motivated the builder is to move inventory. We track these incentives daily and know which builders are offering the best packages.
What's the best time of year to make this move?
Best overall timing:
- List your current home: April-May (peak selling season)
- Close on new home: June-July (summer moving season)
Why this timing works:
- Maximum buyer pool for your current home (families buying before school year)
- Better weather for moving
- Get settled before school starts
- Time to landscape and settle in before holidays
If buying new construction:
- Contract on new build: October-December
- Build period: November-July
- List current home: March-April
- Close on both: June-July
Avoid if possible:
- Listing November-January (slowest season, lower prices)
- Moving during holidays (stressful, fewer helpers available)
- Buying in spring without selling first (competing with peak buyer demand)
Are all new homes covered by the same warranty in Texas?
Yes and no. Texas law requires all new homes to include baseline warranty coverage:
- 1 year: Workmanship and materials
- 2 years: Mechanical systems (HVAC, plumbing, electrical)
- 10 years: Structural defects
This is the state-mandated minimum through 2-10 warranty coverage.
However, some builders offer enhanced warranties:
- Extended mechanical systems coverage (5 years vs 2 years)
- Longer structural coverage (15 years vs 10 years)
- Additional coverage for specific items (roof, foundation, etc.)
Ask builders specifically about their warranty programs. Quality builders often extend beyond state minimums as a competitive advantage.
How do I avoid becoming house poor when upgrading?
Follow these rules:
- 25-28% net income rule
- Your housing costs should be 25-28% of your take-home pay (not gross)
- If you take home $10,000/month, target $2,500-2,800 for housing
- Can you save the difference now?
- If your payment increases $1,000/month, can you save an extra $1,000/month now?
- If not, you can't afford it
- Six-month stress test
- Can you afford the payment if one income disappears?
- Do you have 6-12 months reserves after closing?
- The 80% rule
- Buy 80% of what you qualify for
- If qualified for $750K, target $600K
- This gives you financial breathing room
- Don't sacrifice retirement/savings
- You should still be saving 15-20% of income for retirement
- You should still have emergency fund intact
- You should still be able to take vacations and enjoy life
If you can't check all these boxes, you're buying too much house.
Ready to Make Your Strategic Move to $700K+?
Here's the reality: You've read 5,000+ words about making this transition. That means you're serious about this, not just casually browsing.
The difference between families who successfully make this move and those who stay stuck in starter homes isn't income—it's information and strategy.
You now have the information. Let's build your strategy.
Let's have a no-pressure conversation about your specific situation.
In 30 minutes, we'll:
- Show you what $700K actually gets you in different Alliance corridor communities
- Create a realistic timeline that works for your family and career
- Give you the insider knowledge to make a confident, informed decision
- Explain specifically which communities offer the best value for your priorities
There's zero obligation. If after talking, you decide now isn't the right time, we'll tell you why we agree and when you should revisit it. If you decide you're ready, we'll create a detailed action plan and get started.
Either way, you'll leave with clarity and confidence about one of the biggest financial decisions of your life.
Contact the Miranda Realty Team
📧 Email: [email protected]
📱 Call or Text Edson: 940.577.2051
Office Location: Serving the Alliance Texas corridor including Denton, Argyle, Northlake, Flower Mound, Trophy Club, and Justin
Our Promise: Spirit-led counsel and straight talk (no fluff). We're not here to sell you a house—we're here to help you build wealth through strategic real estate decisions.
More Resources from Miranda Realty Team:
📰 Alliance Network - Hyper-local news and market intelligence for the Alliance corridor
🏡 Harvest by Hillwood Guide - Complete community breakdown and buyer's guide
🏘️ Landmark by Hillwood Guide - Everything you need to know about this 3,200-acre development
🏠 Furst Ranch Guide - In-depth analysis of this new Flower Mound community
📊 Monthly Market Updates - Data-driven insights on Denton County real estate trends (December 2025 Report Coming Soon)
About the Author:
Paige Miranda is a top-producing Realtor with Miranda Realty Team, specializing in new construction and master-planned communities in the Alliance Texas corridor. Recognized as a top Hillwood Realtor, Paige and her husband Edson are former "unintentional investors" who bought and sold six homes over 13 years, giving them firsthand experience with the wealth-building power of strategic homeownership.
Paige brings deep expertise in navigating new construction communities and helping families make strategic home decisions. She and Edson founded their faith-based real estate business with the motto "Spirit-led counsel and straight talk (no fluff)" and the tagline "Love where you live. Profit when you leave."
Disclaimer: Information in this guide is accurate as of January 2026 and subject to change. Home prices, interest rates, builder incentives, and market conditions fluctuate. All financial examples are illustrative and should not be considered personal financial advice. Consult with qualified lenders, financial advisors, and real estate professionals before making purchasing decisions. The Miranda Realty Team provides real estate services and market guidance but does not provide financial, legal, or tax advice.
