As noted by Fortune, the historically low mortgage rates of the pandemic era are starting to increase. Rates are now less likely to soften the blow of equally historic home prices, resulting in higher monthly payments for buyers. Here are some quick tips for buying and selling in this changing market.
How sellers can get the most for their homes
Mortgage rates are increasing and will likely serve to not only bring property values down but also make buyers more hesitant to purchase. Sellers should keep tabs not only on mortgage rates but on the competition in the area. As houses begin to sit longer on the market, there will be more for buyers to choose from. An important cornerstone in getting maximum value for a home is putting it on the market before mortgage rates and competition increase.
How buyers can get into a home in this market
The key for buyers trying to get into a home in this market is flexibility and a willingness to compromise. Once you’ve set a budget that shows you how much you can afford to spend on monthly mortgage payments, you should plan on getting pre-approved for a mortgage, as having a mortgage pre-approval letter gives you an advantage over other buyers. With sellers rightfully concerned over having the sale fall through because the buyer can’t secure financing, this letter shows that your finances have been pre-vetted, which can give the seller peace of mind about the transaction.
Even with mortgage pre-approval, buyers will likely need to be flexible and willing to compromise on updates and perks to find something within their price range in a tight market.
Partner with a knowledgeable real estate agency
Thinking of buying or selling your home? Get assistance you can trust through Gateway Realty. With over 50 years of experience in the Great Plains area, we’ve seen it all and can guide you through the process no matter what the market is like! Contact us to learn more about how we can help.