How Much Equity Do I Need to Sell My Las Vegas Home?

by Ryan Rose

You want to sell, but you're not sure if the math works. How much do you actually need to have in your home to walk away with something in your pocket? Let's do the math together.

The Basic Formula

Here's the simple version:

Sale Price - Mortgage Balance - Selling Costs = Your Equity

If that number is positive, you're good. If it's negative, we need to talk about options.

What Are Selling Costs?

This is where people get surprised. Selling isn't free. You'll typically pay:

Cost	Typical Amount
Agent commissions	5-6% of sale price
Title insurance	$1,500-2,500
Escrow fees	$500-1,000
Transfer taxes	~$500
Buyer credits/concessions	0-3% (if negotiated)
Repairs/credits	Varies

All in, expect to pay roughly 8-10% of your sale price in costs. On a $500,000 home, that's $40,000-50,000 that doesn't go in your pocket.

Let's Run Some Numbers

Say your home is worth $500,000 and you owe $420,000.

$500,000 sale price minus $420,000 mortgage = $80,000 gross equity.

Subtract 8% selling costs ($40,000) = $40,000 net in your pocket.

That works. You're walking away with cash.

Now say you owe $470,000 on that same house.

$500,000 minus $470,000 = $30,000 gross equity.

Subtract $40,000 in costs = negative $10,000.

That's a problem. You'd need to bring money to closing to sell.

The Magic Number

To sell comfortably, you generally need at least 10% equity. That covers your selling costs and leaves you with something.

Under 10% equity? You can still sell, but it gets tight. You might break even or need to negotiate lower commissions.

Under 5% equity? You're probably underwater once costs are factored in. Time to consider alternatives.

What If You're Underwater?

If you owe more than your home is worth after costs, you have options:

Wait. Build more equity through payments and appreciation.

Bring cash to close. If you have savings and need to move, you can pay the difference.

Negotiate. Sometimes sellers negotiate lower commissions in tight equity situations.

Short sale. If you're in hardship, your lender might accept less than owed. It's complicated, but possible.

More on this in my post about selling with negative equity.

Recent Buyers: Check Your Numbers

If you bought in 2022 or 2023 at peak prices with a small down payment, run your numbers carefully before assuming you can sell. Las Vegas prices have stabilized, but they haven't shot up. You might have less equity than you think.

If you bought in 2020 or earlier? You're probably sitting pretty. Las Vegas appreciated significantly, and most owners from that era have solid equity cushions.

Know Before You List

Before you get excited about selling, know your numbers. Check your mortgage balance. Get a realistic estimate of what your home will sell for. Do the math.

Surprises at closing are never fun. Better to know upfront if selling makes financial sense.

Want help running the numbers on your Las Vegas home? Get a free home evaluation and let's see where you actually stand.

Frequently Asked Questions About Home Equity When Selling in Las Vegas

Q1: How much equity do I need to sell my Las Vegas home?

You generally need at least 10% equity to sell comfortably. This covers your selling costs (typically 8-10% of the sale price) and leaves you with some money in your pocket. If you have less than 10% equity, you may break even or need to bring cash to closing.

Q2: What are the typical selling costs in Las Vegas?

Expect to pay approximately 8-10% of your sale price in total costs. This includes agent commissions (5-6%), title insurance ($1,500-2,500), escrow fees ($500-1,000), transfer taxes (~$500), and potential buyer concessions or repair credits (0-3%). On a $500,000 home, that's roughly $40,000-50,000.

Q3: How do I calculate my home equity?

Use this simple formula: Sale Price - Mortgage Balance - Selling Costs = Your Net Equity. If the result is positive, you'll walk away with cash. If it's negative, you'll need to bring money to closing or explore other options.

Q4: Can I sell my Las Vegas home if I'm underwater on my mortgage?

Yes, you have several options if you owe more than your home is worth: wait to build more equity through payments and appreciation, bring cash to closing to cover the difference, negotiate lower commissions with your agent, or pursue a short sale if you're experiencing financial hardship.

Q5: I bought my home in 2022-2023. Do I have enough equity to sell?

If you bought at peak prices with a small down payment during 2022-2023, you should carefully run your numbers before listing. Las Vegas prices have stabilized but haven't increased significantly, so you may have less equity than expected. Get a current home valuation and calculate your costs before making a decision.

Q6: What if I have less than 5% equity in my home?

With less than 5% equity, you're likely underwater once selling costs are factored in. Your best options are to wait and build more equity, bring significant cash to closing, or explore a short sale if you're facing financial hardship and must sell.

Q7: Are agent commissions negotiable in Las Vegas?

Yes, commissions are negotiable. In tight equity situations, some sellers successfully negotiate lower commission rates with their agents. However, extremely low commissions may affect the level of service or marketing your home receives, so weigh the trade-offs carefully.

Q8: Should I sell my Las Vegas home before buying a new one?

This depends on your equity position and financial situation. Selling first gives you certainty about how much cash you'll have for your next purchase and prevents you from carrying two mortgages. However, it may require temporary housing. Evaluate your specific circumstances and timeline to make the best decision.

Q9: How do I get an accurate estimate of my Las Vegas home's value?

The best approach is to get a comparative market analysis (CMA) from a local real estate agent who knows Las Vegas market conditions. Online estimates can be helpful starting points, but they often miss important factors like condition, upgrades, and neighborhood nuances that affect your home's actual sale price.

Q10: What happens at closing if I don't have enough equity?

If your equity doesn't cover all selling costs, you'll need to bring cash to closing to make up the difference. Your title company will provide a settlement statement showing exactly how much you need to bring. If you can't bring the required funds, the sale cannot proceed unless you negotiate a short sale with your lender.