7 Home Selling Tips for success in a High Interest Rate Market
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In the world of real estate, the market is ever-changing. From fluctuating home prices to varying interest rates, selling your home can be daunting. This is compounded when you factor in how high-interest rates are. But don’t worry! In this blog, I will provide valuable home selling tips, insights, and relatable stories to help you through the selling process, even in a high-interest rate selling environment.
1. Understand the Impact of High-Interest Rates
Before diving into the selling process, it’s crucial to understand how high-interest rates can affect the real estate market. Higher interest rates can deter potential buyers, increasing the cost of borrowing money for a mortgage. As a result, buyers may be hesitant to purchase a home when interest rates are high, potentially leading to your home spending longer on the market.
I am seeing this in my own area, Great Falls, Montana. We are seeing homes sit on the market for a very long time. Buyers are certainly hesitant to consider homes with these high-interest rates.
2. Price Your Home Competitively
Considering how high-interest rates are, it only makes sense to price your home competitively. Setting your prices higher than comparable homes in the area can further deter people from taking the plunge and buying from you. Below, I’ll share a story about Sarah – there’s a valuable lesson in it for you, I promise. I’ll then share my own experience with pricing homes competitively..
The Tale of Sarah's Success
Sarah, a homeowner in a high-interest-rate market, decided to sell her home. She researched her local market and priced her home modestly. Within a few weeks, she had multiple offers and ended up selling her home at a favorable price, even in a challenging market.
I recently dedicated a few hours to collaborating with a fellow agent to determine the ideal pricing for one of our listings. In today’s dynamic market, this endeavor involved an extensive three-hour session meticulously reviewing comparable homes currently on the market. We scrutinized the numerical data and delved into the details of property photos, assessing each home’s features and visual presentation.
This exercise highlighted a crucial principle that applies to any market scenario: the importance of evaluating your competition. This holds even truer when the market’s conditions are neither clearly in favor of the buyer nor the seller.
3. Enhance Your Home's Curb Appeal
Curb appeal refers to how good your home looks when viewed from the street. It not only refers to your home but the area surrounding it as well. Read below for Jake’s story, illustrating the importance of your home’s curb appeal.
Jake's Landscaping Transformation
Jake had difficulty selling his home due to high-interest rates. To attract more buyers, he invested in landscaping improvements. His well-maintained garden and improved curb appeal made a significant difference in attracting potential buyers, ultimately leading to a successful sale.
It is always important to offer the best to stand out from the crowd. Put yourself in the buyer’s shoes. What is it that you would want in your home? That is what they are looking for: the best options available!
Throughout my experience in real estate, I’ve encountered many homeowners who, due to their reluctance, were unwilling to take the necessary steps to benefit their buyers. Unfortunately, this often led to unfavorable outcomes, including significant financial losses and delayed closings.
In some cases, this stubbornness even resulted in the loss of a potential buyer simply because they were unwilling to make a modest investment to maximize their home’s value. The golden rule of real estate and in life: Treat every property, person, and transaction with the care and respect you want for your own, and you’ll create a foundation for success and satisfaction.
4. Market Your Home Creatively
If you thought you could simply list your home for sale and see countless offers rolling in, know that this isn’t the case. Marketing your home is a given if you want to see the highest return on investment and a quicker sale. And it’s not enough to simply market it – you should do so creatively. Keep reading to find out more:
The Instagram Success of Emily
Emily used social media platforms like Instagram to showcase her home’s unique features. By leveraging stunning photos and engaging captions, she reached a broad audience. She sold her home, proving the power of creative marketing.
In nearly all of our property listings, like the one shown in the above before and after photo, we’ve implemented a game-changing strategy that has consistently delivered impressive results – the art of landscaping.
Today, we’ll take you on a journey to one of our remarkable transformations in Great Falls, Montana, which has become one of our prized vacation rentals and earned the prestigious “Most Improved Rental in 2018-2019” award from NeighborWorks. This was before we even completed the landscaping!
Before you decide on your realtor, please don’t hesitate to ask any questions about how they market and sell your property. How will they market your property? Will they use a professional photographer? Will it be creative? Do they use social media?
5. Consider Offering Incentives
Offering incentives as part of the home selling process can give you an edge over your competitors, reducing the amount of time your home stays on the market. What types of incentives are we talking about? Literally, anything that could make the property more attractive to the buyer.
Here are a few incentives sellers tend to use:
Helping with closing costs
Offering to update a portion of the home
Including furniture with the home purchase
All these things can incentivize the buyer. Learn more below.
Mark's Closing Cost Assistance
Mark found it challenging to sell his home in a high-interest rate market. To sweeten the deal for potential buyers, he offered to cover a portion of the closing costs. This incentive made his home more attractive, leading to a quicker sale.
Incentives can run the gamut, from paying for something the buyer would have had to pay to including something valuable for free and more. And the right incentive for one buyer may not work for another. Be willing to adapt on the fly to offer an incentive that could really make a difference to a potential buyer.
In my next listing, we will include furniture for future buyers in the home sale to sweeten the deal. Subscribe to our newsletter and check back with us to see how it turns out!
6. Work with a Skilled Real Estate Agent
Whether you’re in the market to buy or sell a home, a capable negotiator can make all the difference in securing your dream property or a successful sale. I share one of my proudest moments as a realtor below.
In a recent experience, I had the pleasure of assisting a wonderful couple in their quest to find their dream retirement home. With a well-defined budget and specific preferences, they entrusted me to guide them through the process while out of state.
After thoroughly researching the property they had their hearts set on, I identified several comparable properties in the area. While my clients were initially prepared to submit a full-price offer, I needed to recognize the current market trends and the existing interest in the property.
Considering all factors, I recommended offering thousands less than the property’s current market price. My clients, trusting my expertise, agreed to the revised offer. We promptly submitted it to the listing agent, who mentioned the presence of another interested party.
The listing agent played hardball to ensure they secured the best offer. Their response time was deliberate, taking 48 hours to get back to us, even though we had requested a 24-hour response. Perhaps they were hoping for a competing offer to emerge. Nevertheless, my clients’ determination paid off.
Today, my clients are in their retirement home in the picturesque town of Great Falls, Montana, where they’ll be closer to their daughter, all while saving thousands of dollars on their purchases.
I am thrilled I could help them save in these challenging days when everything is expensive. This experience shows the importance of having a skilled and strategic agent by your side, especially regarding negotiations. If you want to learn more about what to look for in a realtor, read this article.
7. Be Patient and Flexible
Selling a home in a high-interest rate environment may take longer than usual. Be patient and open to negotiation. Having some flexibility in your terms can make your property more appealing to potential buyers.
So, there you have it – 7 expert tips for selling your home. By understanding the market, pricing competitively, enhancing your home’s appeal, and creatively marketing it, you can increase your chances of success. Remember, working with a skilled real estate agent and being patient and flexible are critical elements of a successful sale. So, don’t let high-interest rates deter you from selling your home – use these tips to your advantage and make your real estate dreams a reality.
Good luck with your home-selling journey! I would be honored to help you with your next sale or purchase! You can contact me on our contact page or through social media.
Note: In the spirit of transparency and expertise, I am not just a realtor but a seasoned professional who understands the intricate nuances of the real estate market. I bring this wealth of experience to assist you in finding your dream property or selling your home and run a comprehensive comparative market analysis tailored to your unique needs.
So, when considering your real estate journey, know I’m here to offer you more than just the run-of-the-mill services. I’m here to be your trusted guide and advocate, ensuring you make the most informed decisions in today’s ever-evolving real estate landscape. My goal is to do my best; I would want someone to do the same for me.
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