This question is not easy to answer. Most of the information you see about real estate is focused on the local market. The area in which you live can impact whether you receive more or less.
If your house is priced in the price range of first-time buyers, higher interest rates can easily impact how much buyers will offer. Prices may not be as affected if the house is located in an affluent area with many cash buyers. Prices will depend on how many homes are available for sale. If there is low inventory and many buyers, prices could stay steady.
Pricing your home correctly is essential, but it’s even more crucial in this market. If the market data does not show lower sales prices, you won’t want your home priced lower than it has to. However, you don’t want your house to sit on the market at a record price.
Problem is that you can’t rely on recent sales to determine the house’s value and list price. These houses are “recently sold” because they were available for sale a few months ago. With the market shifting, this is ancient history, considering how much interest rates rose in the last few months. after these homes were under contract. It’s impossible to tell how much the homes that were in escrow now and then actually sold for until they are actually closed.
Here are some things to think about when you put your house up for sale in the near future.
- Based on recent comps but be open to lowering: Use houses that have recently sold to base your asking price. Pay attention to the market’s reaction in the first few weeks. You might consider a price drop if buyers don’t make offers.
- Take your time: Houses are now selling in hours, days or weeks. Sell my home in mammoth lakes doesn’t mean sellers aren’t thinking your house is too expensive. It may take longer for houses to sell as the market changes. However, it is possible to get an idea of the opinions of buyers about your price in just a few weeks after your house is listed on any market. Give it a few weeks to a full month before you make a decision on pricing. Consider reducing your price if buyer reactions or any other data at the time support it.
- The market is affected by interest rates: Interest rates determine how much it costs to borrow money per thousand dollars. In a sense, this is not your problem. They must decide how much money they are able to afford and what the available funds are. Their interest rate won’t affect you as long as they are available buyers in your price range and area who are able to afford the price you are asking. But, if the current buyers don’t want to pay as much as they did , it will affect you. This is because their dollars aren’t as stretched as so interest rates may have risen significantly. But, it is important to be aware of the impact on your local buyers and their price range. Keep in mind that the Fed actively tries to affect the real estate market through adjusting rates. If you are on the fence about selling your house and fear that the rates might impact the value of the house, it is a good idea to act sooner than later.
Here’s the takeaway
Although the real estate market is changing in many areas, it doesn’t necessarily mean that the value of your home is being affected.
If you are planning to sell your house quickly, you can base your asking price on recently sold houses similar to yours that were likely to have been selling at historically high prices. You should also keep an eye on the market reaction and any new data regarding sales over the next few weeks to a full month.
