Are you waiting to sell your current home because you no longer love where you live but love your current mortgage interest rate? If so, you're not alone.
Waiting for lower interest rates to find your next home may seem like the best option. However, a recent survey shows a consensus around a magic number - 5.5% interest rates. Some parties are calling it "the sweet spot."
Seventy-one percent of buyers and 3/4 of homeowners believe it will take a 5.5% interest rate to buy their next home.
But what if we told you five common seller fears can be resolved in the current market climate, along with five reasons why it's great to sell your home right now? Or that if you're willing to jump into the % of sellers not waiting for lower rates to sell and buy that you can make this market work for you?
Here are five common seller fears and how this current market - with higher rates - can be a blessing in disguise
Fear #1: I don't want to overpay for my next home.
Do increased interest rates mean decreased buying power? Don't higher rates also mean more of your money goes to the bank vs your premium?Yes, and absolutely. If this is a concern of yours, you're not alone. Most sellers are selling to live in a new home. Increased interest rates impact your monthly payments and the total amount you can get approved for.
Current Market Solution: After the past two years of significant home value increases, you may be sitting on much more money in your existing home than you think. It's already in your home in the form of equity. You can use this towards an increased downpayment when you buy your next home, which can significantly raise your total buying power.
How much money are you sitting on? Good question. Set up a meeting with us. We'll be sure to give you the good, the bad, and the possible when it comes to your home's value.
Plus we can work with the current owner of your next home to help buy down your monthly payment for a couple of years and hook you up with a lender that will allow you refinance later with no extra fees.
Fear #2: How long will it take to sell my home?
Most sellers are eager to know how long it will take for their home to sell. Every seller wants the process to go quickly, right? Sure. But, when push comes to shove, they're also anxious about how much time they'll have to find their next home, pack, and move.
Current Market Solution: With a more moderate-paced market, there's more time to consider options, consider offers, negotiate, pack, and move. Longer ''in-contract'' times can and are being asked for by sellers.
The average days on market before a home sells in The New Orleans Metro Area is 51 days which is longer than it took last year but historically a low number of days.
Overall, there's less pressure to move quickly and more time to get things right. Plus, when you do go to make an offer, you're less likely to be beaten out by other people who are also worried about being with our a home and willing to offer more.
Fear #3: How can I be sure the best possible buyer knows my home is for sale?
Sellers want to know if top buyers will see their home once it's listed. Will people know about my home? Will they come to see it? Will anyone like it? Who's my buyer likely to be?
Current Market Solution: Our team's sales strategy is media-first. We don't just know social media, video, and content are necessary; we know how it works and how to make it work for you! So awareness of your home, when it goes to market, is never an issue.
But a major perk of a low inventory of homes for sale means less competition and more eyeballs on your property. So when we combine the powers of our media team with the current low inventory marketplace, you can be sure everyone shopping for a home will know about your place.
For example, our article on The Most Interesting House in Lakeview got our sellers almost 300 reads, six showings, and two offers for their property. And more than 71 buyers accrued 1.7 hours watching our Mario Live Home Tour of 4600 Wilson Street on YouTube. [We used Mario Kart's Augmented Reality Game, Mario Kart Live, to drive an RCA Mario car with a camera through a home in Metairie]. That's almost half an hour longer of watch time than the feature length Mario Brothers Movie.
We get creative with each property. Each home is a product and it deserves a unique go to market strategy shared with a broad audience but designed to engage the ideal target buyer.
Fear #4: Will I be homeless?
Almost all sellers are worried their home will sell before they find a new one. It can be a delicate dance to get the timing right. With limited inventory, this becomes a bigger concern.
Current Market Solution: The good news is that while inventory is still at 60% of "normal," it has risen since it bottomed out in January. And while most buyers sit and wait for 5.5% rates, you can expect less competition when you shop. This means offers can be made and accepted on your next home before your current home is sold. In addition, this allows more time for coordination of everything from packing to closing!
Rent-backs are also gaining popularity once more. A rent-back is when a seller becomes a tenant post-sale. The new buyer allows the seller to stay a month or more after the closing and pay rent. This gives the seller some flexibility to get things ready, finish a semester, or find their next home.
Fear #5:Will I have to put my home back on the market?
Bidding wars can be great for sellers, but sometimes they also lead to buyer remorse and early cancellations resulting in the seller needing to relist the home. It's easy for a buyer to get caught up in the frenzy of needing to put in an offer the same day as an open house and then have regrets. This can add to the probability of them bowing out.
Current Market Solution: Right now, in New Orleans, you can expect fewer bidding wars. This means your price won't be driven up every sale every time by multiple buyers, bummer. But, it also means buyers can sleep on their decisions, consult professionals, and make more thoughtful offers. This means they're more confident in their decision to buy your home and less likely to flake.
This means that when you shop for your next place you may also have enough time to have your own showing, take time to discuss the matter with your family, lender, and agent thoroughly, and sleep on your decisions too!
But this will change when the 71% of buyers waiting for 5.5% rates see the rates they want, get used to the idea that they may be higher for a while, or get wise like you just did.
Bonus to selling right now? A more informed and serious class of buyers.
Buyers in this market are increasingly doing their homework before making an offer. This can look like asking for detailed information like insurance rates, utility costs, roof age, and major systems upfront before making an offer or even going on a showing. As a result, we're also seeing our open houses gaining in traffic.
Be prepared to get asked more details upfront about your home. Also be prepared for a buyer that has done their homework, this means when they make an offer, they want to see the deal through.
It seems that while most buyers and homeowners are waiting for the "sweet spot on interest rates," we've hit a "sweet spot" on informed buyers.
So, if you're sitting and waiting to sell your home because you like your current interest rate but don't love where you live, we are here to tell you the best time to move is whenever you're ready to live someplace else. Any market comes with pros and cons and ups and downs. All markets take a pro to navigate them to your advantage.
This coming Wednesday's Fed meeting has most economists and real estate market analysts showing a tenth consecutive increase in interest rates. This means it's the perfect time to make the market work for you by getting out in front and working smarter, not harder. So let us guide you through the process and ensure you get the best deal possible.
If you're ready to be someplace else, we're ready to listen.
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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