Rising interest rates and how it affects sellers and why you should list NOW!

As a seller, interest rates are probably not at the forefront of your mind.  Interest rates directly impact the buyer, right? WRONG! They are an immediate factor in the home selling process too. As interest rates increase, the pool of buyers will decrease for the seller.  Smart buyer agents are having their clients shop under their max budget to allow for room to offer higher on a home and still have a chance.  But even a .25% interest rate change can drastically decrease the amount a buyer can afford monthly thus possibly eliminating your home from contention.

Again, why does that have anything to do with the seller.  Why should the seller care if the buyer can’t afford the home?  That’s not the seller’s problem.  And while you are correct, to an extent, rising interest rates always means less buyers, more homes on market,  longer days on market, less offers and less sale price for the seller.

While I wish I had a crystal ball (I’d be rolling in the dough if I did) I can’t completely predict the future.  However, the Fed has made it very clear that interest rates will be increasing multiple times in 2022.  Listing your home now will guarantee you the largest buyer pool with the most offers and the least amount of days on the market.

Now, I know what your going to say.  “If I list my house now, yes I’ll get top dollar but that also means I have to fight to find a house and then pay top dollar too.”  Don’t worry, I have an answer for that too.  Check out my next post on how to navigate the navigate delicate situation of selling and buying simultaneously and why it DOES NOT have to be a scary as you think.