Interest rates are on the rise... While still historically low, they are definitely higher than they were a year ago, which can be less than optimal for Buyers and create a lot of questions. Many of the Buyers we’re seeing in the market today are very cognizant of this shift.
Today’s Buyers still have the same access to the upfront money for down payments and closing costs as Buyers from the past couple of years. Although Buyers today are now realizing that their money won’t go as far as it once did due to the rising interest rates. This is one of the reasons why we are seeing demand start to shift.
For example: Last year an identical house was listed on the market for the same amount as yours on the market today. The Buyer today will end up paying more for the exact same house at the exact same price due to the higher interest rates. Right now, it's those long-term financials that are the current issue for buyers.
As a Seller, one may want to ask themselves what they can do to reduce the long-term effects of higher interest rates for their prospective Buyers. In return attracting the best Buyers and getting their home sold quickly. As a result of the rising interest rates, some Buyers can’t afford as much of a home as their monthly payments will be higher just due to interest alone.
You’ll also want to watch out for situations where financing may fall through. Interest rates are rising quickly; therefore, you may be in a situation where your buyer was pre-approved at a certain rate when making the offer. Fast forward a month and interest rates went up, now they are unable to get approved for the same mortgage amount. This is an uncomfortable situation to be in, for both the Buyer and the Seller.
Do not overprice your home in a shifting market. There may be appraisal issues causing A) the Buyer to come-up with more of a down payment, B) the Seller dropping the price to cover the deficiency or C) the home not closing. All of this can cause lost time on the market and headaches for both parties.
Your Agent will guide you through every step of this process and market your home so you can attract the best Buyers and sell your property for top dollar – even in a time of rising interest rates.
If you want help getting your home sold quickly and for the best ROI, just reach out to our team here and we will walk you through the process.
Posted by Tanya Evoy on