As the Federal Reserve works to curb rising inflation, mortgage interest rates have been increasing. This has put a damper on the home search for some buyers and caused others to re-work their budget for their new home. If you're looking to sell your home in this market, it's important you (and the agent you hire to help you sell your home), understand market trends and the impact these trends have on the sales price of your home.

Here are some items to consider:

  1. Time is of the essence — we know that interest rates will increase at least several more times this year because the Feds have announced it. Rising interest rates makes home buying more expensive to buyers who need to take out mortgage loans to fund their purchase. Each percentage point increase in a mortgage translates to roughly a $100,000 decrease in home affordability. 

    What we don't know is by how much the Fed will increase interest rates. And in an environment of rising interest rates, your potential buyer pool will decrease each time the rates go up. That's why, if you need to sell your home, it's best to do it sooner rather than later. You'll have a larger population of buyers interested in your home, thereby increasing your chances of it being sold quickly and at a good price.

    Additionally, studies have shown that your home gets the most attention during the first week it's on the market. After that, buyer interest wanes as they move on to look at the next newest listing on the block. And the longer your home sits on the market, the more likely buyers will think there's something wrong with it. 

  2. Price is an important component of listing and selling your home quickly and for top dollar. One of the first things a potential buyer will look at even before seeing your home, is your list price. Price your home too high in comparison to others in the neighborhood and that potential buyer will likely make a snap judgment about your home and decide against seeing it, even before we have the chance to wow them with the features and amenities of your home. And you don't get another chance to make a first impression.

    As your realtor, I will help you run pricing research in your neighborhood before we list your home for sale. This way, we can find the sweet spot of pricing your home to attract as many buyers as possible, to increase your chances of selling your home for the highest price.

Contact me today for additional home selling tips!