How can you sell a home in Snohomish County or King County if you have a HELOC?
You can absolutely sell a home in Snohomish County or King County even if you have a HELOC (Home Equity Line of Credit). The key is understanding how your HELOC affects your equity, how it’s paid off during closing, and what steps to take before listing. With guidance from REALTOR® Marie-Noelle Metseye, you can navigate the process confidently and avoid delays.
What Is a HELOC and How It Works
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home’s equity. Unlike a traditional mortgage, it allows you to borrow funds as needed,similar to a credit card,up to a set limit. When you sell your home, your HELOC must be paid off in full, just like your primary mortgage.
Step 1: Understand Your Payoff Amount
Before listing your home, contact your HELOC lender to request a payoff statement. This document shows exactly how much you owe, including interest accrued and any early repayment fees. The payoff balance will differ from your last statement, so it’s essential to get an updated amount before closing.
Step 2: Estimate Your Net Equity Before Listing
Your net equity is the amount you’ll receive after paying off your mortgage, HELOC, and selling expenses. To estimate, subtract your total loan balances from your home’s current market value.
Example: If your home in Bothell is worth $850,000, and you owe $600,000 on your mortgage plus $50,000 on your HELOC, your net equity before costs is approximately $200,000.
Marie-Noelle Metseye offers a Comparative Market Analysis (CMA) to help determine your home’s true market value and guide your financial planning.
Step 3: Disclose Your HELOC to Your REALTOR® and Escrow
It’s important to tell your REALTOR® and escrow officer about your HELOC early in the process. During closing, escrow will use the sale proceeds to pay off both your first mortgage and HELOC directly, ensuring you transfer clear title to the buyer.
Failure to disclose a HELOC can delay the transaction or create title issues, especially if the lender isn’t notified in advance.
Step 4: Avoid Using the HELOC After Listing
Once you decide to sell your home, avoid taking additional draws from your HELOC. Each new transaction affects your payoff balance, which can delay closing or complicate escrow’s calculations. If possible, ask your lender to freeze the line once your home is on the market.
Step 5: Prepare for the Closing Process
At closing, escrow will coordinate directly with your mortgage and HELOC lenders to obtain updated payoff amounts. The sale proceeds will first pay off both loans in full, and any remaining funds are then released to you as net proceeds.
After payoff, your HELOC account will be closed permanently. You’ll receive documentation confirming the lien release within a few weeks.
Local Market Insight
Many homeowners in Snohomish and King County have built significant equity thanks to years of appreciation. In September 2025, the median home price in Snohomish County is around $700,000, while King County averages $850,000. Understanding your home’s value and your HELOC balance ensures a smooth, financially sound sale.
Frequently Asked Questions About Selling With a HELOC
Can I sell if my HELOC is maxed out?
Yes, as long as your home’s value exceeds your total debt. The HELOC will be paid off from the sale proceeds at closing.
Do I have to pay off my HELOC before listing?
No. You don’t have to pay it off before listing. It’s handled during the sale when escrow pays the lender directly.
What if my home sells for less than my combined loans?
If your sale proceeds don’t cover both balances, you’ll need to bring the difference to closing or discuss short-sale options with your lender.
Conclusion: Sell With Confidence and Clarity
Selling a home with a HELOC may seem complicated, but with proper planning and professional guidance, it’s a smooth process. Marie-Noelle Metseye ensures every step, from pricing to escrow coordination, is handled with transparency and care.
Thinking about selling your home with a HELOC? Contact Marie-Noelle Metseye today for a personalized market analysis and equity review.
