Sellers: Don’t Let These Two Things Hold You Back

Many homeowners thinking about selling have two key things holding them back. That’s feeling locked in by today’s higher mortgage rates and worrying they won’t be able to find something to buy while supply is so low. Let’s dive into each challenge and give you some helpful advice on how to overcome these obstacles.Challenge #1: The Reluctance to Take on a Higher Mortgage RateAccording to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):But today, the typical 30-year fixed mortgage rate offered to buyers is closer to 7%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as the mortgage rate lock-in effect.The Advice: Waiting May Not Pay OffWhile experts project mortgage rates will gradually fall this year as inflation cools, that doesn’t necessarily mean you should wait to sell. Mortgage rates are notoriously hard to predict. And, right now home prices are back on the rise. If you move now, you’ll at least beat rising home prices when you buy your next home. And, if experts are right and rates fall, you can always refinance later if that happens.Challenge #2: The Fear of Not Finding Something to BuyWhen so many homeowners are reluctant to take on a higher rate, fewer homes are going to come onto the market. That’s going to keep inventory low. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains:“Inventory will remain tight in the coming months and even for the next couple of years. Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years.”Even though you know this limited housing supply helps your house stand out to eager buyers, it may also make you feel hesitant to sell because you don’t want to struggle to find something to purchase.The Advice: Broaden Your Search If fear you won’t be able to find your next home is the primary thing holding you back, remember to consider all your options. Looking at all housing types including condos, townhouses, and even newly built homes can help give you more to choose from. Plus, if you’re able to work fully remote or hybrid, you may be able to consider areas you hadn’t previously searched. If you can look further from your place of work, you may have more affordable options.Bottom LineInstead of focusing on the challenges, focus on what you can control. Reach out to a local agent so you’re working with a professional who has the experience to navigate these waters and find the perfect home for you. 

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Key Housing Market Trends for the rest of 2023

  Some Highlights If you’re considering buying or selling a home, you’ll want to know what’s happening in the housing market. Housing inventory is still very low, prices are climbing back up, and homes are selling fast when priced right. Connect with a real estate agent if you want more information about your local area and what the trends mean for your plans to buy or sell.

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Should You Sell Your House Fast for Cash?

As a seller, deciding to part ways with your home can be an emotional and complex process. One of the biggest decisions you'll need to make is whether to sell your house fast for cash or go the traditional route of listing with a real estate agent. While there are benefits to both options, it's important to understand the pros and cons of selling your home for cash. Pros of Selling Your Home for Cash 1. Quick Sale: One of the biggest benefits of selling your home for cash is the quick and hassle-free process. Since there are no financing contingencies or home inspections, the sale can typically be completed in just a few days. 2. No Repairs Required: When you sell for cash, you don't have to worry about making any costly repairs or upgrades to your home. The cash buyer will purchase the property as-is, saving you time and money. 3. No Closing Costs or Commissions: When you work with a cash buyer, you won't have to pay any closing costs or real estate agent commissions, which can save you thousands of dollars. Cons of Selling Your Home for Cash 1. Lower Sale Price: Since cash buyers are looking for a good deal, you may not get top dollar for your home. They'll typically offer a lower sale price than what you would get on the open market. 2. Scams and Fraudulent Buyers: Unfortunately, there are scams and fraudulent buyers out there who prey on desperate sellers. It's important to do your due diligence and research any potential buyers before agreeing to a sale. 3. Limited Market: When you sell your home for cash, you're limiting your market to only those who have the cash on hand to make the purchase. This means you may not get as many offers as you would if you listed your home on the open market. Real Estate News and Market Update The real estate market has been experiencing a surge in demand, with low inventory and high buyer competition driving up home prices. While this may seem like a good time to sell, it's important to remember that the market can be unpredictable. Working with a professional real estate agent can help you navigate the market and get the best possible sale price for your home. In conclusion, selling your home for cash can be a great option for those who need to sell quickly or don't want to deal with the hassle of repairs and open houses. However, it's important to weigh the pros and cons and do your due diligence before making a decision. If you're unsure which option is right for you, reach out to a reputable real estate agent who can provide guidance and support throughout the selling process.

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