Rising Rates: A Guide for Buyers and Sellers
Interest rates have more than doubled: What does that mean for you? This could have a significant impact on you, whether you are thinking about selling or buying.
If you’re thinking about selling:
1. You’re going to have a much smaller buyer pool. These rates have more buyers on the sidelines than in previous years. The market isn’t dead, but it does mean the pool has shrunk.
2. Price your home correctly. This is the most important time to ensure that your home is priced right. The days when you could overprice your home and get away with it are gone. It’s time to be very strategic about your price to attract that smaller pool of buyers.
3. Show your home well. We can no longer simply show any house in any condition. If there are ten homes on the market, only two or three will be really hot, so showing well is crucial.
4. Consider offering a seller credit. This helps the buyer lower their interest rate in this high-rate environment. Be prepared to offer these credits as part of the deal.
5. Be prepared for more time on the market. We can no longer expect to get ten offers and go on contract the first weekend. In this more normal market, it can be weeks or months before you get an acceptable offer on your house.
“These rates have more buyers on the sidelines than in previous years.”
If you’re thinking about buying:
1. We’re starting to see better prices. The bidding wars have calmed down, meaning we are no longer seeing $50,000 over list price, and sellers are more motivated to work with you on that price.
2. We are seeing more inventory. More homes are coming on the market, meaning there is more competition and more selection for buyers.
3. Interest rates are on the rise. They are nearing 7% right now, which means that your monthly payment may be a little higher than what you might have planned for even six months ago. However, rates are projected to decrease again in the next 12 to 24 months.
4. Fight the fear. There’s a lot of trepidation in the market right now. The headlines and the media aren’t helping anyone right now. It’s still a great time to buy, and home ownership still outweighs renting.
If you have any questions about buying or selling in this changing market, our experienced realtors would be happy to discuss all the details. Give us a call, and we’ll make sure you’re equipped with the right information.
