We are here to answer your home selling questions. Today, we’ll go over interest rates, choosing among multiple offers, and buying and selling a house at the same time.
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Today, I’d like to answer a few more recent questions from home sellers.
William asks, “What do rising interest rates mean for home sellers?”
Financial experts and analysts who watch mortgage rates do predict that interest rates will go up three times over the course of 2018. By the end of the year, interest rates will be closer to 5%. That will affect buying power because monthly mortgage payments would increase for the same loan a buyer could get today. Prices could hang steady or even drop a little bit. If you are concerned, it’s a good idea to sell now, at the highest point in the market.
Our next question is from Bonnie, who wants to know, “How do I choose from multiple offers?”
Every seller’s needs are different. We will talk to you about your goals and your needs. Every offer may not be the same, even if the offer price is the same. We will look at details such as closing cost assistance, if the buyer wants you to pay for the home warranty, or if they want any furniture or other items left in the home that is not generally included in the home sale. We will go through each offer point by point, examine the details, and figure out which one is best for you.
Hopefully, you have enough equity in your current home to make a considerable down payment.
Finally, Kenneth asks, “What if I can’t find a new place after selling my home?”
That is a valid concern in today’s market, since homes are selling so high right now and their sellers must buy in a higher market. If you have a plan and a backup plan in place, you will be ahead of those other buyers in the higher market.
Hopefully, you have enough equity in your home to make a considerable down payment. If so, you will already be ahead of the majority of buyers out there. Many buyers use a low down payment loan option because of the higher cost of living and rent increases in our area. They simply have a hard time saving for a down payment, so keep that in mind and plan ahead when it comes to your home equity.
In the meantime, make sure that you have a place to stay if you do end up selling a home and it takes a couple of months to find your next one. See if you can stay with a family member or friend, or look for a short-term rental.
Thank you for sending in your seller questions. If you have any other questions about real estate, just give us a call or send us an email. We would be happy to help you!