This is what I heard from a family the day of the last interest rate increase. “You were right!!! Selling it in May was the right thing to do!” Make no mistake. This is not about me being right. This is about them being open to the facts I shared with them.
We’ve been working together for a while on organizing the best way to sell their current home. When we negotiated an offer for their home in May I shared the possible scenarios of what can happen. They could reject the offer and not sell. Or we could negotiate some common ground so they could move on with their lives. Everyone always has a choice. I always explain the consequences and results of each choice. In this case, they chose to negotiate and their place was sold.
When interest rates go up it impacts both sellers and buyers. Unless buyers had a locked-in pre-approval for a fixed rate, they lost a part of their buying power. Generally speaking, today they can afford to pay less than a week ago. As a result, if you sell today the offers they will submit for your home may be lower than what they would have been a few days ago.
Some buyers also will not feel comfortable buying with the new rate and will stop looking. This may translate to fewer buyers for your home.
What if you wait to sell after the next interest hike? Naturally, offers will be even lower, and interested buyers will be fewer.
Yet, it is important to note that the location, the type, and of course the condition of your home matter. As always some neighborhoods are affected less than others. Due to low supply and high demand. While well-maintained homes priced appropriately will sell with the right strategy.
What you do with these facts or how you feel about them is up to you. Now you know they have a practical and phycological impact on buyers and sellers alike. This is why the real estate market can often change overnight. If you want us to discuss further we are always here for you.
#Remember to Say NAI/Yes to Life. Every Single Day.