MORTGAGE BLOGBlog posted On October 10, 2024
In today’s real estate market, selling a home can feel like an uphill battle, especially when faced with fluctuating interest rates and a variety of buyer circumstances. Some sellers find themselves waiting months to secure an offer, while others are challenged by unpredictable bids and shifting buyer demand. As the market continues to change throughout the fall, here are some factors that could help sellers and some ways they can improve their listing’s success.
Challenges faced by sellers
Sellers today are dealing with more than just interest rates. Seasonal market trends, local factors like school district quality and insurance rates, and the buyer’s financial situation all contribute to delays in selling. Whether it’s a prospective buyer navigating gift tax issues* or a low initial offer from someone hoping to negotiate, sellers have a lot to consider.
How rate cuts could help
Rate cuts, like the recent 50-basis-point cut by the Fed, can help shift the market, making home loans more accessible to buyers. For those looking to sell, it could mean increased demand as borrowing becomes more affordable. However, a small rate cut alone may not be enough to create the surge sellers are hoping for right away. Patience and timing are crucial in determining whether now is the best time to sell.
Speed up the process with List & Lock™
For sellers eager to expedite the process, tools like List & Lock can offer an edge**. With this program, sellers can lock in a discounted interest rate for potential buyers, creating a more appealing offer in the eyes of the buyer, and hopefully speeding up negotiations. Programs like these can be the tipping point when a buyer is on the fence, allowing sellers to close sooner for a better price.
In this dynamic market, understanding all the factors at play – and utilizing the right tools – can make all the difference. Whether you’re ready to sell now or planning for the future, it’s important to stay informed and take advantage of every opportunity to reach your real estate goals.
Source: Market Watch
*For tax advice, please consult with a tax professional.
**This lock cannot be transferred to another property address. While List & Lock™ can help buyers significantly, it is not a guarantee to lend. If a buyer is interested in purchasing the listed home at the advertised rate, they must still qualify for the loan. The benefit is that they won’t have to qualify for the loan based on the higher market rates; instead, they will be qualifying on the List & Lock™ rate. They will have several loan options to choose from through List & Lock™ -- Conventional, FHA, VA, and select adjustable-rate mortgages (ARMs). The same type of credit and discount can be applied to other loan programs, but rate adjustments could occur. If you’re concerned your closing could extend beyond the 60-day period, contact your loan officer to discuss extension possibilities.
