Many homeowners in San Jose are currently sitting on strong equity and hearing numbers like “you have $1.3 million in equity.” On paper, that sounds like a clear financial win, but after 35 years as a real estate broker and in lending, I can tell you the number most people focus on is not the number they actually walk away with. For example, a home worth $1,800,000 with a $500,000 mortgage shows $1.3M in equity. But when you sell, typical costs like commissions, closing costs, and repairs often total around $120,000 or more, and then the mortgage is paid off. That brings the net down to roughly $1,180,000 before taxes. Depending on your situation, there may also be capital gains considerations. For example purposes only, this could range from about $30,000 to $150,000+, which is why it’s important to check with a CPA, Enrolled Agent, or Tax Attorney for your specific situation. After everything is factored in, many homeowners end up closer to roughly $1.03M to $1.15M net, not the full $1.3M headline number. That’s where the real decision begins. For many homeowners today especially those with low interest rates in the 2–3% range the question isn’t just about equity. It becomes a Stay vs Sell decision: stay in a low-rate mortgage and long-term position, or sell and unlock equity while resetting into today’s higher-rate environment. The right answer depends on your goals, timing, and overall financial picture but the key is understanding the real numbers before making the decision.
