How Much Equity Do I Need Before Selling My House?

"How much equity do I need before selling my house?" is the question behind most "can we afford to move?" conversations, and the honest answer is that Texas sets no minimum. You can sell a home with very little equity, or even none; the question is whether you can cover everything a sale costs and still come out ahead. This post reads the question from the seller's seat: the break-even formula, what the seller side actually costs in Texas, a worked example at a San Antonio price point, and where Texas owners stand on equity right now. If you are on the buying side of the same move, my sell-and-buy guide covers sequencing the two closings; here the focus is your equity number.

The break-even formula every seller should write down

Equity is not money in your pocket; it is the difference between what your home is worth and what you owe on it. What you actually walk away with is net proceeds, and the formula is simple:

If that number is positive, you take cash to your next chapter. If it is negative, you bring money to closing, which is what people mean when they say a house is "upside down" or that selling would cost them. The mortgage payoff is the single biggest deduction, so the lower your balance relative to the sale price, the more cushion you have after the costs. My equity calculation answer walks through the payoff math, and the net proceeds answer shows the full statement.

What the seller side actually costs in Texas

The seller side of a Texas closing typically runs about 6% to 10% of the sale price, and the commission is the biggest line. A 2026 survey of local agents put the average total commission in San Antonio at 5.61%, split between the listing agent and the buyer's agent. On top of that, sellers usually cover the owner's title policy, title and escrow fees, prorated property taxes, recording fees, and any concessions or repair credits negotiated with the buyer, which together add roughly another 3% of the sale price. Texas has no state transfer tax, which keeps the stack shorter than in many other states. My cost to sell in Texas post breaks down every line item, and the seller closing costs guide has the same numbers in one place.

Worked example: a $350,000 sale in San Antonio

Say your home sells for $350,000 and you owe $300,000 on the mortgage. That is $50,000 of equity, about 14% of the sale price. Now subtract the seller side: commission at 5.5% is about $19,250, the owner's title policy runs roughly $2,000 to $2,500, title, escrow, and recording fees add roughly $400 to $1,000, and prorated property taxes and any concessions vary with your closing date and the contract.

Total seller costs land around $25,000 to $30,000, roughly 7% to 9% of the sale price. Subtract that from your $50,000 of equity and you net about $20,000 to $25,000. Flip it: if you owed $325,000 instead, your equity drops to $25,000 and your net proceeds nearly vanish. That is why the working rule is 8% to 10% equity to break even, and 15% to 20% if you want real money for a down payment, moving, or a remodel in the next place. The Comal County net sheet example runs a full statement line by line.

Where Texas owners actually stand right now

Most Texas owners are in good shape, but the cushion has thinned. ATTOM's Q1 2026 Home Equity and Underwater Report counted 42.5% of Texas mortgaged homes as "equity rich," meaning the owner owes no more than half of what the home is worth, down from 47.4% in Q4 2025 as prices softened and rates reset. On the other end, a property is "seriously underwater" when the loan balance is at least 25% above the home's value, and the national seriously underwater rate was 3.2% in Q1 2026. Texas sits far from that cliff for most owners, but the number that matters is yours, not the state average.

How to check your own number in one afternoon

• Pull your payoff quote from your lender, dated for your expected closing week, including any second lien or HELOC.
• Get a realistic value from recent closed sales of comparable homes in your neighborhood, not an online estimate.
• Subtract your payoff from the realistic value to find your equity, then subtract 8% to 10% of the sale price for seller costs.
• Compare the net proceeds against what your next move actually needs: down payment, closing costs, moving, and a cushion.

If the number is thinner than you hoped, you have options: wait, price against closed comps instead of a hopeful number, or negotiate harder on the buyer side of the deal. Because I work both sides of the table as your REALTOR and your loan officer, I can run your net sheet and then structure your next purchase around what is actually left. Bring me your address and your payoff balance and I will pull the closed comps and run the full picture, free and with no obligation.

Frequently Asked Questions

Sincerely, Patrick, The Mortgage Patriot

Sources: ATTOM Data Solutions, U.S. Home Equity & Underwater Report, Q1 2026 (Texas equity-rich rate 42.5%, down from 47.4% in Q4 2025; equity-rich defined as loan balances at 50% or less of estimated market value; seriously underwater defined as loan balances at least 25% above market value, national rate 3.2%); ListWithClever 2026 survey of San Antonio real estate agents (average total commission 5.61%) and 2026 seller closing cost data for Texas (non-commission seller costs averaging about 3.26% of sale price); LegalClarity break-even analysis of equity needed to sell (combined Texas seller costs typically 6% to 10%, with roughly 8% to 10% equity needed to break even). Market statistics are a snapshot, not a forecast; individual neighborhoods and price ranges vary. This article is general education, not legal or tax advice; consult a licensed Texas agent or attorney for your specific situation.