Do I Have Enough Equity to Sell My House?

If you’re worried about being “upside down” or “underwater” on your home—meaning you owe more on your mortgage than the house is worth—you’re not alone. Many homeowners face this challenge when market conditions change or their debt grows. However, even if you’re not fully underwater, being on the edge with limited equity can still pose difficulties if you want to sell.

What Does It Mean to Be Upside Down or Underwater?

Being underwater happens when your mortgage debt exceeds your home’s current value. This can occur due to declining property values, rising mortgage debt, or both. However, even if your home’s value is slightly higher than what you owe, selling can still be tricky, as closing costs and commissions can eat into that small equity.

2024 and 2025 Equity Insights

In the first quarter of 2024, U.S. homeowners saw a 9.6% increase in home equity compared to the previous year, adding $1.5 trillion in equity gains. This upward trend has provided financial relief to many who were previously underwater. In fact, the number of homes in negative equity dropped by 15% year-over-year​ (Norada Real Estate Investments)​(CoreLogic®).

Looking ahead, home prices are forecasted to increase by about 2.3% through 2025, which means homeowners near the break-even point could see some relief. If prices rise, more homes could regain equity, allowing owners to sell without taking a financial hit​ (The MortgagePoint -).

What If I’m On the Edge?

If you’re close to a break-even point, where your home’s value is just slightly higher than your mortgage, you still have options:

1. Stay in the home and pay down your debt while waiting for home prices to rise.
2. Work to increase your home’s value through strategic renovations or repairs.
3. Explore alternative sales options, such as selling to a company like Frontdoor, which can offer a fast, cash-based solution.

Final Thoughts

Don’t let uncertainty stop you from exploring your options. If you’re not sure whether you have enough equity to sell, you can reach out to experts who can help you evaluate your situation. At Frontdoor, we can provide a cash offer within 24 hours and close the sale in as little as seven days, helping you move on even if you’re worried about being underwater.

For more detailed data on homeowner equity trends and predictions, check out reports by CoreLogic and ATTOM​ (Norada Real Estate Investments)​(CoreLogic®).