BLOGBlog posted On October 19, 2023
“I’ll wait until next year...” “Maybe when rates fall…” “I can’t afford to buy right now…” High mortgage rates are pushing many people out of the home buying market. With fewer interested buyers, selling a home has become significantly harder than a couple of years ago. If you’re trying to sell now, don’t give up hope. We have ways that can help you save money and still sell your home at top price.
Should I lower my listing price?
After your home sits on the market for a while, you probably start brainstorming how you can get more eyes on your listing. The first instinct for most people is to lower the listing price. Ideally, the lower price will make the home more affordable and therefore more appealing to buyers. However, lowering your listing price can have a few unwanted impacts:
Plus, home prices aren’t the main thing turning buyers away right now. Rates are.
Rates are more influential than prices right now
Though both factors are contributing to decreased buyer affordability, rates are the main issue right now. Why do rates seem to matter more that home prices? Because in a buyer’s mind, if they wait 6 months, a year, or a couple years, rates will fall, and they’ll save hundreds on their monthly mortgage payment. The same isn’t necessarily true for prices. In other words, buyers would rather wait to get a better rate.
How to sell faster and save more money than a price reduction
The solution? Guarantee buyers a discounted rate. A temporary or permanent buydown is one option, but it’s hard to advertise on a home. Plus, a different option can lower a buyer’s monthly payment even more than a buydown. By spending the same money you’d spend on a price reduction or rate buydown, List & Lockä can get sellers AND buyers more.
List & Lockä: seller benefits
Don’t believe us? Check out this scenario:
So if you’re thinking about lowering the listing price of your home, ask us and your Realtor about List & Lockä first!
*Payment example: Stated rate may change or may not be available at time of rate lock. If you bought a $400,000 home with a 30-year loan at a fixed rate of 7.25% (7.334% Annual Percentage Rate), with a down payment of 20%, for a loan amount of $400,000, you would make 360 monthly payments of $2,729.00. Payment stated does not include mortgage insurance, taxes and homeowners insurance, which will result in a higher payment.
**Payment example: Stated rate may change or may not be available at time of rate lock. If you bought a $480,000 home with a 30 year loan at a fixed rate of 7.25% (7.334% Annual Percentage Rate), with a down payment of 20%, for a loan amount of $384,000, you would make 360 monthly payments of $2,647 .00. Payment stated does not include mortgage insurance, taxes and homeowners insurance, which will result in a higher payment.
***Payment example: Stated rate may change or may not be available at time of rate lock. If you bought a $500,000 home with a 30 year loan at a fixed rate of 5.875% (6.290% Annual Percentage Rate), with a down payment of 20%, for a loan amount of $400,000, you would make 360 monthly payments of $2,367.00. Payment stated does not include mortgage insurance, taxes and homeowners insurance, which will result in a higher payment.
****Payment example: Stated rate may change or may not be available at time of rate lock. If have a 780 credit score and bought a $500,000 home with a 30 year loan at a fixed rate of 5.5% (5.558% Annual Percentage Rate), with a down payment of 20%, for a loan amount of $400,000, you would make 360 monthly payments of $2,271.00. Payment stated does not include mortgage insurance, taxes and homeowners insurance, which will result in a higher payment.
