Overcoming Two Common Hurdles for Home Sellers

Are you considering selling your home but feeling hesitant? You're not alone; many homeowners have two major concerns holding them back. Let's address these challenges and offer some valuable advice on how to tackle them.

Challenge #1: Concerns About Higher Mortgage Rates

According to data from the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4%. However, today's typical 30-year fixed mortgage rates for buyers are closer to 7%. This significant increase has led many homeowners to hesitate, fearing the impact of higher borrowing costs. This phenomenon is known as the "mortgage rate lock-in effect."

The Advice: Don't Wait Unnecessarily

While experts anticipate a gradual decline in mortgage rates as inflation eases, it's essential to remember that predicting rate movements can be challenging. Moreover, home prices are currently on the rise. By making your move now, you can avoid potentially higher home prices when you purchase your next property. If mortgage rates do decrease as expected, you can always explore refinancing options later.

Challenge #2: The Fear of Limited Inventory

The reluctance of many homeowners to accept higher rates means that fewer homes are hitting the market, keeping inventory levels low. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), points out:

"Inventory will remain tight in the coming months and even for the next couple of years. Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years."

While a limited housing supply can make your home more appealing to potential buyers, it may also create apprehension about finding your next home.

The Advice: Broaden Your Search Horizons

If the fear of not finding your next home is holding you back, consider expanding your search. Explore various housing types, including condos, townhouses, and newly built homes. Additionally, if you have the flexibility to work remotely or in a hybrid arrangement, you might broaden your search area. Exploring locations farther from your workplace could reveal more affordable options.

Bottom Line: Instead of dwelling on these challenges, focus on what you can control. Connect with a professional who possesses the experience and expertise to guide you through the process, helping you find the perfect home. Don't let these common concerns prevent you from making a move that could benefit you in the long run.