The low equity situation is the most common we run across. In most cases, the homeowner has tried to sell their home "for sale by owner" without any luck. The next step is to list it through an agent. In order to cover the agent's commissions and additional closing costs, they have to increase the price.
Since the price was increased, the likelihood of selling is reduced. Even if it does sell, what little equity you have is eaten away by the commission and closing costs.
Some real estate agents may even refuse to list your house because there isn't enough equity to pay their commissions!