Three things to tell your buyers who are having second thoughts.
It’s no secret that interest rates are now much higher than they were at the beginning of the year. How can you keep your buyers moving forward even though it’s less affordable to purchase a home? If your buyers are getting cold feet, remind them of these three things to keep them going:
1. The market isn’t crashing. Yes, higher interest rates are causing conditions to slow down, but we aren’t heading for a crash for a few reasons. First, most homeowners have a 30-year loan with a great rate; second, the vast majority of homeowners have plenty of equity; and finally, our market currently has a significant shortage of inventory. If your buyer is waiting for prices to drop, let them know they could be waiting for a long time.
“Your buyers have a window of opportunity to find a fantastic deal.”
2. Monthly payments don’t change with a mortgage. Rates may be higher, but locking in a mortgage will save your buyer money in the long run. Rents are increasing and are only going up in the coming years. Your buyer’s mortgage will stay locked in unless they want to refinance later.
3. Our shift presents a new opportunity for your buyers. Many sellers in our market are still acting like things are as hot as they used to be. They’re listing their properties above market value, but buyers are no longer clamoring to throw in crazy offers. This means price reductions are more common, and your buyer can likely purchase a home below market value. They’ll have equity the second they’re handed the keys.