How Rising Mortgage Rates Affect You When Selling Your House

Are you thinking about selling your house and wondering how the higher mortgage rates might affect you as a seller? Well, you’re in the right place! Today, I’ll discuss a topic that could have a significant impact on your selling journey: rising interest rates. So grab a cup of jo and let’s talk about that… and what you can do to navigate the current real estate market.

Rising Rates And Cost Of Money And Affordability

One way rising mortgage rates affect you when selling your house is home affordability. When selling in any market you need to understand the relationship between mortgage interest rates and the cost of money.

As interest rates rise, the cost of borrowing money increases for potential home buyers and vice-versa. This means that a higher mortgage rates market will reduce their purchasing power… which will also reduce the number of buyer prospects who can purchase your house.

Here’s the thing: Let’s say you just listed your home for sale. The sign in the yard, the photos are done… and then interest rates begin to climb. As a result, some of those potential buyers who would have and could have previously purchased your home might now be hesitant to commit due to the higher cost of financing.

As interest rates rise, the cost of borrowing money increases for potential home buyers

Another thing to be aware of when selling your house is the impact higher interest rates have on affordability. Simply put, buyers will qualify for smaller loan amounts due to higher rates. This forces these buyers to downgrade their expectations and possibly settle for a less expensive home or adjust their budget accordingly.

This doesn’t mean your home is worth less than it was. It just means that the buyer pool gets much smaller.

What You Can Do When Selling In A Higher Rate Market

So, what can you do, as a home seller when you genuinely want to sell your house but it’s a higher mortgage rate market? Is there a solution and is there a way to navigate the market to sell in a fair time frame and still get top dollar?

Sure, and here are a few strategies:

1. Price competitively: Consider setting a competitive price to attract buyers who may be on the fence or are near being priced out of the market due to rising interest rates. Properly pricing your home can increase its appeal and help it stand out in the market. Notice I did not you should underprice your house, just be sure you’re offering a price that would compel buyers to get off the fence.
2. Highlight unique features: You’ll want to emphasize the unique and distinctive qualities of your home that justify why it’s a better value than the competition and worth the extra cost associated with higher interest rates. Showcase any recent renovations, energy-efficient upgrades, or desirable neighborhood amenities with video, drone photography, and a dynamite presentation.
3. Collaborate with a real estate professional: That would be me! As your real estate broker, and a top real estate broker in Roseburg OR, you can count on my 28 years of experience to help you through market fluctuations and position your home strategically. I am happy to share valuable insights into buyer behavior and market trends and help you set realistic expectations so you have a great home-selling experience.

Bottom Line

Rising mortgage rates don’t necessarily mean doom and gloom for home sellers. Interest rates fluctuate based on different economic factors, and the truth is the real estate market cycles. By pricing competitively, showcasing your home’s unique features, and enlisting the help of a knowledgeable real estate professional, you can navigate these changes and still achieve a successful sale at a great price.

So, do rising mortgage rates affect you when selling your house? They certainly can… all the more reason to get informed, stay positive and keep your eyes on the prize. Selling your home is absolutely still within reach, even in an environment with rising mortgage rates.

Thinking about selling your house in the Roseburg OR area? Shoot me a direct message, call, or text. I’d love to chat and see how we might work together. Thanks for reading/watching! Best of luck with your home-selling journey!