Selling a House Without Equity

Are you planning to sell your house and move into something better? Around 6.5 million homes were sold in the U.S. in 2020, while this figure can increase to 7.1 million this year in 2021.

Whether it’s been your childhood home or one that you bought a few months/years back, selling the old one and moving to a new and better space is all about growth. Yet, it’s not as simple and sorted as it seems. You may need the will to sell your house in the first place, but what goes into the task after that is far more than the effort needed to think about selling your space. 

No matter how many homes you’ve left and moved from, it’s always the same hectic and time-taking process of selling a house. So even if you’re fully prepared, selling your house can be a long process every time. However, the desire to move to a better place and the satisfaction of knowing that you’re a homeowner is always equally fruitful when you think about this long process. But is that all? Is the long process and the homeownership enough when it comes to selling a house? Certainly not!

Various other factors go hand-in-hand that help ease or complicate your home selling process. One major factor here can be equity. You know, when you’re not having financial burdens or pressure while selling your house at extremely good rates, you’re making a deal worth the time taken. Yet, if you don’t have any equity, selling a house without equity can be equally challenging – but surely not impossible!

So without further ado, let’s explore the role of equity in the home-selling process and the process of selling a house without equity in more detail. 

Understanding Home Equity:

If you’re new to the concepts of homeownership or what is involved in the buying and selling of a home, let’s first explore what home equity is. Besides, if you’re asking yourself that ‘can I sell my house without equity,’ you need to have a clear concept of equity and how you ended up with no equity in the first place.

In simpler terms, home equity is the money you (as an owner) have after your unpaid balance on the residence is subtracted. This value is subtracted according to the evaluator’s current market value estimate of the home/property. This equity can easily rise once the homeowner pays the debt and consistently keep the home’s value maintained. 

Yet, even when a home’s equity is low, the homeowner can still find possible home selling options. Especially when there are numerous home buying services in Washington and U.S, it’s easier to sell any home. With a clear understanding of equity, its role in home selling and purchasing, and the right ways, you can consider selling a house without equity.  

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Generally, when you have no equity as a homeowner, it’s mainly because of some possible reasons. His can include:

  • Homeowner owing too much.
  • Homeowner being underwater due to debt or mortgages
  • Homeowner having negative equity

It’s not just a certain situation, but a homeowner can end up facing all of this one by one if things aren’t handled rightly or solved. At times like these, selling your home at good rates and being able to maintain your home’s value by the time of the sale can be a real struggle if you’re not making home selling efforts in the right direction.

How Has the Home Equity Trend Expanded?

While you can always sell your home without equity, there’s no denying the fact that equity plays an important in the residential economy. When it comes to homeowner’s desire to build wealth, it all comes to building equity. It’s a simple term that keeps the homeowners separated from the home renters. It makes you the responsible person for the leaky pipes or the garden maintenance, without the need to contact a landlord and keep them on speed dial for such repairs. 

While the U.S economy has been expanding slowly from mid-2009-2019, the growth in home price increase has also been expanding. This has helped put more equity in the homeowner’s pocket while limiting the homes having negative equity. Although this was impacted during the COVID-19 pandemic, the home prices still preserved and thrived due to the low record mortgage rates and inventory. Hence, even in the tough conditions of the pandemic, the U.S homeowners did gain an increase of 6.6% every year, keeping their ship on sail.

While this makes it obvious that the limited negative equities or no-equity conditions for homeowners have made the home selling and their market value maintained with time. But even then, there are homeowners having no home equity. 

No Equity? You Can Still Sell Your Home!

Now with so much rise and demand of equity for homeowners, especially in this struggling time, it can certainly be challenging when you’re setting out to sell your home without equity. But while you do re-consider the question that can I sell my house without equity?’, it’s important to remember that every house can be sold. 

So while you’re home may lose the same market value it had when you bought it, you can still get decent deals on your home and sell it without equity. 

·        Selling Home With Professional Services:

When it comes to looking for solutions to selling a home without equity, there’s no questioning in the option of choosing professional real estate agents. Since they’ve been a part of this industry for way too long, they always have one or more ways to help you get the best deal – even when your home doesn’t have equity.  

If you’re living in Washington, you certainly need a professional real estate agent to assist you throughout this process. No matter where you are, an agent can be the most suitable house for a homeowner to sell his/her house. Despite the kind of home, the market value it holds, or your financial situation, a professional real estate agent is the perfect option for every kind of homeowner. Yet, the only loophole here that can persist many homeowners from choosing an agent is their commission fees. While every agent has a different commission fee percentage, it can take a decent amount from the sale you make. Hence, only if you’re willing to invest a bit for a good and easier home selling procedure/deal, choosing an agent is highly suitable. 

·        Opting for Short Sale:

If we talk about most homeowners that need to sell their home, even when they owe more than the market value of their home, a short sale is what most people usually consider. It can be a compromise sale but also a reliable option for selling your home.

In this process, the lender and owner need to agree to sell their home to avoid foreclosure. It’s more like a method of avoiding legal actions when you owe too much, making you sell your home when things get rough. In this process, the bank has to agree to write to cover the loss on the sale. Although this can be the only solution to prevent foreclosure (even when you’re not willing to sell your home), it’s still better than damaging your credit by facing a foreclosure. Additionally, when you’re selling a house without equity with this method, you also limit the chances of damaging your future ability to buy a home. 

Even when you’re considering this method, trusting professional real estate agents can help you throughout the process and limit your chances of taking the wrong steps.

·        Sell The Home to an Investor: 

Another great way to consider when selling your home is to sell it to an investor. When you don’t have equity, you may not find people who need a house to instantly move to and live in. In that case, the best decision is to sell the home to a single investor or investor group. 

There are plenty of companies that seek property for purchase having limited equity. As a result, it helps the investors finalize a price according to their suitability, and the seller has to agree to that price. Most of the time, these investor companies look for properties having lower After repair Value. This may not always fit the homeowner’s demands for selling the house. But they always have the power to accept or refuse such orders – or negotiate with the investor.


While the list of options for selling a house without equity may be more than just these, but it’s always better to go for the most common and reliable solutions at first. Since selling a home is always possible – even when its value may be reduced, you can always make a decent deal instead of losing your home on complete loss.

So go ahead and get started with the process of selling your home – it’s time to take the next step in life!

sell my house with no equity
Ryan Garrison

I have been purchasing properties in Western Washington since 2003. My wife is from Olympia originally. We have three beautiful kiddos and a dog \"Lucky\". I enjoy helping my clients solve problems related to unwanted properties. I am also a Licensed Real Estate agent in the state of Washington.

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