Interest rates have been remarkably low for a long time, and we got lulled into believing that would last forever…
But then they almost doubled overnight – yikes!!
Many buyers were unprepared for how higher interest rates would affect their buying power, and I found that clients were often afraid of committing to a property once interest rates skyrocketed.
I get it, but here’s the good news – you don’t need to worry.
Over the life of your mortgage interest rates will go up and down. If you purchase when interest rates are high, you can always refinance at a lower rate in the future. If you find your dream property, don’t let high interest rates stop you from making an offer.
In fact, higher rates might actually work in your favor…
It’s no secret that the real estate market has been CRAZY! Higher interest rates tend to cut down on multiple offers, bidding wars, and housing shortages. This means that the current higher interest rate could play a big role in stabilizing the market and giving both buyers and sellers an equal shot at a fair price.
Instead of worrying about the ups and downs of interest rates, focus on finding the right property for you. Here are somethings to consider while you’re shopping around for the perfect place:
- You probably won’t find a property that has EVERYTHING on your wish list, so be prepared to sacrifice some minor wants for a property that fits your priorities for space, land, and location.
- Decide where you stand on fixer-uppers. If you’re handy and love a project, you can score a house with amazing potential at a great price. But remember that renovation costs have a way of snowballing. If you’re not sure you can cover the unexpected costs, it might be best to focus your search on turn-key properties.
- You’re probably not thinking about the day you’ll move out before you’ve even moved in, but it is something to consider. Most first-time home buyers sell within 5 years. When you’re ready to sell, will you be able to? What if you need to sell in a hurry? It might make you think twice about a property that sat on the market for a long time, or one that’s in a less than desirable location.
- Working with a local agent makes it SO much easier to find your new home. Your agent knows your area inside and out. They can find properties that aren’t on your radar. Heck, sometimes we can get you a sneak peek at a house that hasn’t even been listed yet! We’ve seen neighborhoods grow and change, and we’re usually pretty good at predicting how property values and resale values will fluctuate in the coming years.
In the ever-changing, challenging world of real estate, having a relationship with an agent you are comfortable with can make all the difference in your experience.
We’ll be here to help you find the perfect place, sooth your worries when things get complicated, navigate the closing process, and work hand in hand with lenders and attorneys to get you into your new home with the least amount of friction possible.
