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Aerial view of a Dallas neighborhood with mid-size single-family homes, showing a contrast between older and newer properties.

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

May 26, 20253 min read

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

By Steven | Refind Realty

Aerial view of a Dallas neighborhood with mid-size single-family homes, showing a contrast between older and newer properties.

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.

Dallas home equityselling home Dallas TXDallas upgrade homereal estate equity DallasSteven J. Thomas Realtor
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6 Smart Ways to Build Home Equity

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Avoiding Pitfalls That Can Derail Your Home's Sale

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Ultimate Guide To Buying a Home

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How to Improve Your Credit

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Steven J Thomas
Dallas realtor


Owned and Operated by Thomas & Thomas Financial Group, LLC

Steven J. Thomas

Steven J. Thomas has been in the financial services industry for the past 19 years and started my career as a Financial Planner for American Express Financial Advisors. I entered into banking with JP Morgan Chase as personal banker in 2003 and was promoted several times up to Small Business Specialist. I earned multiple Million Dollar Club awards and was ranked in the top 5 Small Business Specialist before I branched out in 2005 to start my own Financial Management Company. I ran a successful company before family circumstances lead me to Wachovia Bank in 2008 where I worked as a Senior Financial Specialist. As a Sr. Financial Specialist; I was responsible for the P & L and revenue growth of my banking center. The elimination of my role thru a bank merger lead me to BBVA Compass. I have held various leadership roles at BBVA Compass including Personal Relationship Manager, Branch Retail Executive, Workplace Solutions VP, and his current role as a Retail Manager. As the Regional Workplace Solutions VP, I was responsible for the strategic, tactical, and execution of Partnership Banking relationships, promotion and activity with corporate and non-profit companies in my footprint. I was responsible for the acquisition production for three districts, which includes 51 banking centers and over 300 employees. In May of 2014, I joined the team at Refind Realty and became one of the managing partners in mid-2015.

  • 50+ 5 Star Reviews

  • Over $60,000,000 in Total Real Estate Sales

  • 167 Properties Sold

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succesfull real estate agent testimonials

I used this realtor and it was a great experience. He was patient and very helpful with our journey. He also helped us find a great lender with little hassle on the process, also got us approved for well above the market of our original home so we were able to get more house with a lower mortgage rate. So to anyone who is interested in buying a home take my advice give Steven a call. It’s worth it 😁

Bryant Loring

Steve was absolutely amazing! Everything was easy! Very professional in all aspects. Punctual, responsive, and diligent. He goes above and beyond to ensure you get to see as many homes as you’d like no matter the location. Not only was he knowledgeable about home buying, he also has a resourceful network for new home owner needs. I recommend Refind Realty to everyone!

Nicholas Bishop

I definitely recommend Steven to assist with your home buying needs. As a first time home buyer the process can be overwhelming, but as my realtor he was knowledgeable & patient while addressing my concerns and assisting me with my new home purchase. Thanks again Steven!! :-)

Gayle Mason

Ask Us Anything

Frequently Asked Questions

Why do you need a Realtor?

When buying or selling a home, there are so many options…which can also present a lot of obstacles. Laws change, forms change, and practices change all the time in the real estate industry. Because it’s our job to stay on top of those things, hiring a realtor reduces risk, and can also save you a lot of money in the long run.

When you work with me as your Realtor, you’re getting an expert who knows the area; knows how to skillfully guide your experience as a seller or buyer; can easily spot the difference between a good deal and a great deal. My job is to translate your dream into a real estate reality, and I work hard to earn and keep my business. This also means earning your trust: When you work with me, you’ll be working with a realtor who looks out for your best interests and is invested in your goals.

Which loan should you choose?

There are two different types of loans conventional loans and government-backed loans. The main difference is who insures these loans:

1 - Government-backed loans (FHA, VA and USDA):

(a) - Are, unsurprisingly, backed by the government.

(b) - Include FHA loans, VA loans, and USDA loans.

(c) - Make up less than 40 percent of the home loans generated in the U.S. each year.

2 - Conventional loans

(a) - Are not backed by the government.

(b) - Include conforming and non-conforming loans (such as jumbo loans).

(c) - Make up more than 60 percent of the loans generated in the U.S. each year.

What is the difference between FHA, VA and USDA loans?

1 - FHA LOANS:

FHA loans, which are insured by the Federal Housing Administration, are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment of as little as 3.5 percent and a credit score as low as 580.

FHA loans are often called “helper loans,” because they give a leg up to potential borrowers who may not be able to secure one otherwise. For this reason, FHA loans have maximum lending limits, which are determined based on housing values for the county where the for-sale home is located.

Because the agency is taking on more risk by insuring FHA loans, the borrower is expected to pay mortgage insurance both at the time of closing and on a monthly basis, and the property must be owner-occupied.

2 - VA LOANS:

VA loans are backed by the Department of Veterans Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100 percent financing, meaning VA borrowers are not required to make a down payment.

Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

3 - USDA LOANS:

You may also hear about USDA loans, which are backed by the United States Department of Agriculture mortgage program. USDA loans are intended to support homeowners who purchase homes in rural and some suburban areas. USDA loans do not require a down payment and may offer lower interest rates; borrowers may have to pay a small mortgage insurance premium in order to offset the lender’s risk.

What’s a conventional loan? Understanding what it means to be conforming and non-conforming

Buyers who have a more established credit history and a larger down payment may prefer to apply for a conventional loan. These loans may offer a lower interest rate and only require the home buyer to purchase monthly mortgage insurance while the loan-to-value ratio is above a certain percentage, so a conventional loan borrower can typically save money in the long run.

Conventional loans are divided into two types: Conforming loans and non-conforming loans.

1 - CONFORMING LOANS:

Conforming loans are those that meet (or conform to) predetermined standards set by Fannie Mae and Freddie Mac — two government-sponsored institutions that buy and sell mortgages on the secondary market. By selling the loans to "Fannie and Freddie," lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

The main standard for conforming loans is that the amount borrowed must be under a certain amount; in Alaska, a single-family home loan must be under $647,200 in order to be considered conforming.

Properties with more than one unit have higher limits.

2 - NON-CONFORMING (JUMBO) LOANS:

But what happens if a borrower wants to borrow more than the Freddie- and Fannie-approved loan amount? In this case, they would have to apply for a “jumbo loan,” which is the most common type of non-conforming loan.

Because the lender cannot resell the jumbo loan (or any non-conforming loan) to Freddie Mac or Fannie Mae, jumbo loans are considered to be riskier than a conforming loan. To protect against this risk, the bank will typically require a higher down payment; the interest rate on a jumbo loan may also be higher than if the same borrower applied for a conforming loan.

What kind of rate should you choose?

Rate types: Fixed-rate vs. adjustable-rate mortgages.

In addition to the loan type you choose, you’ll also have to determine if you want a fixed-rate mortgage or an adjustable-rate mortgage (ARM). A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low-interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate on an ARM can sometimes be locked in for different periods, such as one, three, five, seven, or 10 years. Once the introductory period is over, the interest rate typically readjusts annually.

Office 1229 E. Pleasant Run Ste 224, DeSoto TX 75115

Call :(713) 505-2280

Site: www.stevenjthomas.com

Owned and Operated by Thomas & Thomas Financial Group, LLC