If you’ve made the decision to sell your home – whether for a career move, retirement, or to move on to the next phase of your life from a starter home or into a downsized house – you might be watching the rising interest rates with some apprehension. After all, higher rates means more expensive and harder to get mortgages, which could result in a struggle to find a qualified buyer for your house.
Don’t get depressed, though. Despite the recent rise in interest rates, there are reasons why people selling their homes should stay optimistic.
Home Prices Strong
Interest rates don’t tell all of the story. Home prices across the country are high – they rose 12.2% in May of this year, the biggest jump since 2006 – and every indication is that they will continue to rise or at least stay strong. This is mainly due to a lack of inventory; the recession put a crimp in new housing starts, and many people chose to refinance rather than sell, meaning there are simply not enough houses on the market for demand. That means that although finding the right buyer might be a bit harder with higher rates, you’ll get a better price for your home in the end.
Rates Still Low
And let’s not forget, interest rates are still incredibly low – lower than they were just a few years ago. While some buyers may get cold feet as they see rates rise, others will see the opportunity: Get in now before rates rise even higher. That means that the buyers you do see will be motivated to get the deal done quickly, before their lock-ins expire and they see the rate on their mortgage go up again.
Keep the fundamentals in mind: Make sure your home is repaired, cleaned, and ready to show, price it wisely based on the comparables in your region, and hire a real estate professional to guide you – and chances are you’ll sell your home in no time!
© 2023 Choice Mortgage Group. All Rights Reserved. Web Managed by IWD Marketing
To help the government fight the funding of terrorism and money laundering activities, Federal law requires us to obtain, verify, and record information that identifies each person who applies for a mortgage loan or other financial services with this establishment. We will ask for your name, address and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.