How Are Rising Mortgage Rates Affecting Sellers?

Posted Mar. 9th, 2023

The interest rate is currently at 6.98% for a 30-year fixed loan and is expected to rise another .25% today in just under 2 weeks. Making the same home more than 25% more expensive than in early 2022. Most sellers are still in shock after last year’s hot real estate market. Read on to learn how this will affect home sellers in 2023

Homes Will Spend More Days on the Market

As the home selling season is about to begin, we are anticipating that homes will sit longer than they did last year. Why? Sellers are still in the fog of last year when sellers didn’t have to do anything to sell their homes in record time and for record profits. Sellers can quickly and easily look up recent sales of similar homes, and when they see the neighbor sold for $850,000 6 months ago, they too want to hit that price point. But that home is now almost 25% more expensive than it was 6 months ago, pricing some buyers out of the market. Buyers that can buy are concerned about price drops and holding back unless they have to.

How Do You Compete in This Market?

Creating a product that will drive the demand. How? Like every other marketing guru, they make it look great, take photos, and show it off to the target market. When selling a home your not just selling the home, but a lifestyle and you need to show buyers that. Would you pay more money for something that is beautiful and ready to use or a thrift store find that needed a little paint? Homebuyers feel the same way. Do the updates, professionally stage, and get professional photos. Staged homes sell 88% faster and 20% more than their non-staged competitors.

Where to Start?

Call a professional home stager. They can help you determine what needs to be updated and the best updates for the highest return on investment. A professional stager will help you determine what needs to go and what should be added as well as have the resources to do so.