Selling your home in a hot market feels great. Buyers line up around the block, you get offers above asking price, and you get to close in just a couple of weeks. The place is sold before you can say “For Sale” sign. Not so fun is when high interest rates cool the market. With higher interest rates and more houses for sale, your home might not be getting multiple offers like before.
Instead, your first showings are to nobody. The “sold” sign in your neighbor’s yard seems like it will never come to you. If you lower your price, you’ll finally get an offer. Right?
The good news is that you do NOT have to lower your price to sell. In fact, you have options. The right options will sell your house fast, for the right price, even in a “cool” market.
Why Interest Rates Slow Home Sales
Buyers rely on mortgage loans to buy houses. With a loan, they can buy something much more expensive than they could if they had to pay cash. Rates have been stuck at record lows, but they’re creeping up now. If they keep going up, more potential buyers are left on the sidelines.
Why? Buyers’ budgets shrink when rates go up. Let’s say you can afford a $350,000 home. When interest rates are at 4%, your monthly payment on a 30-year fixed-rate loan is about $1,670. At 6%, that monthly payment jumps to about $2,100.
To most sellers, $430 a month isn’t that big of a deal. But to a buyer’s monthly budget, it’s the difference between getting approved for a mortgage or not. Buyers who are close to qualifying or have multiple mortgages will probably have to drop out of the market. More buyers drop out of the market = it takes longer to sell homes.
Price Drops: Why They Aren’t Always a Good Idea
One way to increase buyer interest in your home is to lower your asking price. Maybe you’re right in the sweet spot for your neighborhood. One small price drop could get your home selling again!
The problem with price drops is that there’s a stigma attached. Dropping the price is an admission that, “Wow. This home really isn’t selling like I thought it would. Something must be wrong with it.”
Price drops also have a bad habit of cascading. You cut the price once. But no one makes an offer. Do you cut it again? And again? Pretty soon, you’re down $10,000 or $20,000 — or more! All while you’re still paying the mortgage, property taxes, and utilities on the house.
You Don’t Have to Wait It Out
Waiting for a price cut to work can be frustrating. It’s better to sell your home to a buyer you know is going to close. Without the stress of showings and financing uncertainty.
Here’s how:
Sell Off-Market to a Pre-Qualified Buyer – Listing your home is one thing. But you can save yourself months of waiting for showings by selling off-market to a buyer who can close now.
Sell as-Is – Save yourself time and money on staging, repairs, painting, or updating. Your home can sell as-is.
Flexible Closing Date – Are you open to a flexible closing date? Some buyers will pay more for a home if they have some wiggle room.
SFR Unlimited Will Get It Done
At SFR Unlimited, we help homeowners take the stress out of listing their home.
We:
-Make all-cash offers so there’s no waiting for lender approval.
-Close in as little as 7 days.
-Pay for all repairs, inspections, and closing costs.
-Never charge commissions or agent fees.
The bottom line:
Don’t wait for the market to “turn around” to lower your price. There are plenty of ways to sell fast, for a fair price, even in a cool market.
If your home has been sitting with no offers or you’re worried about having to lower your price, give us a call. We’ll help get your home sold fast – and for a fair price – without the hassle.