How Much Equity Do You Need to Sell Your Dallas Home and Upgrade?

By Steven | Refind Realty

Hi, I’m Steven J. Thomas, your trusted Dallas-area Realtor with Refind Realty. One of the most common questions I hear from homeowners thinking about upgrading is: "Do I have enough equity in my home to make the move?" Let’s walk through what that really means — and what you’ll need to know to sell confidently.

What Is Home Equity?

Equity is the difference between what your home is worth and what you owe on your mortgage. If your home is worth $450,000 and your mortgage balance is $280,000, you’ve got $170,000 in equity.

You build equity in two ways:

• Paying down your mortgage over time

• Your home increasing in value (appreciation)

In Dallas, prices have risen steadily over the past few years. If you bought your home before 2020, you likely have more equity than you realize.

How Much Equity Do You Need to Sell and Upgrade?

The general rule of thumb: You’ll want at least 15 to 20 percent equity to cover the costs of selling and give you enough buying power for your next home. Here's what that typically looks like:

1. Selling Costs (6-8%)

This includes:

• Agent commissions

• Title fees

• Closing costs

• Possible repairs

On a $450,000 home, you might need $30,000–$36,000 to cover selling expenses.

2. Down Payment on Your Next Home

If you’re buying a $550,000 to $600,000 home, most lenders recommend at least a 10 to 20 percent down payment. That’s another $55,000 to $120,000 depending on your financial strategy.

3. Moving & Transition Costs

Add $5,000 to $10,000 for moving, temporary housing (if needed), or storage.

Total Suggested Equity to Upgrade Comfortably:

$90,000 to $140,000, depending on your goals and financing plan.

What If You Don’t Have That Much Equity?

No problem. Many homeowners in Dallas are upgrading with less by:

• Using a Refinance or HELOC before listing

• Rolling closing costs into the mortgage

• Taking advantage of builder incentives on new construction homes

• Using our Rebate Program to save thousands on your next purchase
  → Learn more about the Refind Realty Rebate Program

Understanding Dallas Market Timing

As of early 2025:

• Median home price in Dallas: $403,000

• Average days on market: 36

• Buyer demand: Rising with mortgage rates slowly easing

This means if you list your current home at the right price and condition, it could sell quickly — giving you the equity you need to upgrade.

Why Work With Me?

I’ve helped hundreds of Dallas-area sellers upgrade without stress. Whether you're moving for more space, better schools, or a fresh start, I can guide you every step of the way — from equity review to handing over keys to your next home.

Let’s talk about your equity, your goals, and how to make your next move the right one.
Download the Lone Star App here: https://lonestarliving.hsidx.com/@sthomas

You're Always Home With Refind Realty

FAQs

Q: How do I calculate my home equity?
A: Subtract your mortgage balance from your home's current market value. I offer free comparative market analyses to help.

Q: Can I sell with less than 20 percent equity?
A: Yes. It depends on your loan type, market conditions, and your financial plan. Let’s talk about your options.

Q: What’s the best time to sell in Dallas?
A: Late spring and early summer are typically strong, but it depends on your neighborhood and goals.

Q: Can I use my equity as a full down payment?
A: Yes. Many sellers use their equity to cover the down payment, closing costs, or to reduce their new mortgage.

Q: Do I need to sell before I buy?
A: Not always. Bridge loans and contingency offers may allow flexibility. I can walk you through the best path.