Three things about rising interest rates that every seller should know.

 

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What does it mean for home sellers now that interest rates have passed 6%? Here are three things to keep in mind if you’re thinking about listing your home this year:

1. Buyers may have a harder time qualifying for loans. Suppose a buyer had already been pre-approved by a lender for up to $300,000 at a 3% rate. Over the next 60 days, the buyer looks for a home but can't find anything within that range. Many buyers will need a new pre-approval since higher rates lower the amount they can qualify for.

 

 

"If your agent suggests you adjust your price to draw in more buyers, do so sooner than later before rates increase again."

 

 

2. There may be fewer buyers in your price bracket. Since rising rates reduce buyers’ purchasing power, you’ll have fewer people who are able to afford your home. That could lead to you getting a lower sales price for your home.

3. You need to learn about your market conditions. Consult with your Realtor to determine what’s happening in your local market area. Take the feedback you receive from showings to heart; if your agent suggests you adjust your price to draw in more buyers, do so sooner rather than later before rates increase again.

 

Though increasing rates may make things a little more difficult, homes will still sell even in an uncertain market. If you have any questions about the market or how to sell your home for the most money possible, give us a call or send us an email. We’d love to help you.