Can You Sell a Home With a Mortgage in San Jose? Here’s What You Need to Know

Can you sell a home with a mortgage in San Jose?

Yes, you can absolutely sell a home with a mortgage in San Jose. In fact, most sellers still owe a balance on their home loan. As long as the sale price covers your remaining mortgage and closing costs, you're good to go.

Most San Jose Sellers Still Have a Mortgage

You’re not alone—many homeowners in San Jose still carry a mortgage when they decide to sell. It’s a common scenario in this high-value market. The key is understanding your loan balance, your potential sale price, and what that means for your bottom line.

How Selling With a Mortgage Works

Here’s a simplified overview of how the process works:

- You contact your lender to get a payoff quote for your current loan

- You list and sell your home—hopefully for more than what you owe

- At closing, the title company uses buyer funds to pay off your mortgage directly

- Any leftover proceeds (after fees and commissions) go to you

Why This Is Common in San Jose

In high-priced markets like San Jose—where the median home value is around $1.48M in 2025—most homeowners still carry significant loan balances. Even if you've only lived in your home for a few years, you may have built enough equity to sell profitably thanks to strong appreciation.

The Role of Equity in a Mortgage Sale

Your equity is the difference between your home's value and what you still owe on the mortgage. If you owe $700,000 and sell for $1.3 million, you have $600,000 in equity—before expenses. That equity can go toward your next home, debt payoff, or savings.

What If You Owe More Than Your Home Is Worth?

If your mortgage balance is higher than your home’s market value, you have negative equity. Selling in this situation can be tricky. Kip and Tam can help you explore options like negotiating with your lender, a short sale, or even renting out the home if selling isn’t ideal right now.

Why Work With Kip and Tam?

Selling with a mortgage involves more than just finding a buyer. Kip and Tam of The Barnard Group at Compass have guided hundreds of San Jose homeowners through the process. They’ll help you calculate your potential profit, recommend pricing strategies that maximize your equity, and coordinate with your lender to ensure a smooth closing.

Whether you’re in Cambrian, Almaden, or North San Jose, their hyper-local experience ensures you get top-tier guidance every step of the way.

You Can Sell With Confidence

Having a mortgage doesn't hold you back from selling. It just means understanding your numbers and working with professionals who know the San Jose market inside and out.

Talk to Kip and Tam

Thinking about selling your San Jose home but still have a mortgage? Reach out to Kip and Tam for a no-pressure consultation. They’ll help you understand your equity, your options, and what to expect from today’s market.

Visit www.kipandtam.com to get started.