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Is now a good time to sell? Part II (Interest Rates)
Interest rates affecting home values are often overlooked by sellers. This can be dangerous if the seller waits to sell and the interest rates climb.
Let’s say the average buyer is qualified with their bank to finance a home for $200,000 with an interest rate of 4%. Fast-forward to next spring and that rate increases slightly (as predicted) to 5%. That same buyer would only be able to finance a $178,000 home using that same monthly payment. That’s $22,000 less that these qualified buyers can spend. Now the seller has a new dilemma: they have to lower the price of the house or miss every buyer that was previously approved and ready to buy in that price range.
In many cases, waiting to sell while interest rates are low is a bad idea. However, every neighborhood has many factors to consider. Call us and we will help you make an informed decision. Call (904) 500-HOME
To find your homes real value visit: Sell my Jacksonville House
Let’s say the average buyer is qualified with their bank to finance a home for $200,000 with an interest rate of 4%. Fast-forward to next spring and that rate increases slightly (as predicted) to 5%. That same buyer would only be able to finance a $178,000 home using that same monthly payment. That’s $22,000 less that these qualified buyers can spend. Now the seller has a new dilemma: they have to lower the price of the house or miss every buyer that was previously approved and ready to buy in that price range.
In many cases, waiting to sell while interest rates are low is a bad idea. However, every neighborhood has many factors to consider. Call us and we will help you make an informed decision. Call (904) 500-HOME
To find your homes real value visit: Sell my Jacksonville House
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