How to have a conversation about interest rates with buyers and sellers.

With interest rates increasing, we need to discuss them with both our buyer and seller clients. 

On the listing side, we need to tell them that they’ll receive fewer offers and likely lower prices. We also need to check the buyers’ pre-approvals and verify that they’re locked into a current rate

On the buyer’s side, we need to make sure they have an updated pre-approval. We had an instance where a buyer was pre-approved for $600,000 in December, but now they’re only approved for $450,000, which is a huge difference in the type of homes they’ll look at.

“Help them focus on the payment, not the interest rate.”

We all know that rates won’t fall; the federal government will force them up until inflation stops. That’s why now is the best time for both buyers and sellers to get into the market. When you have this conversation with your clients, help them focus on the payment, not the interest rate. It may be a good idea for them to pay a little more monthly now than wait and have rates escalate further. 

Ensure you’re having these conversations with both buyers and sellers and explain what the growing interest rates mean for them. If you have any questions about this or another real estate matter, I’m here to help. Just call or email me.