Are Reluctant Home Sellers Too Attached to Their Low Rates?

Home sellers have a lot of obstacles to overcome when they decide to sell their homes. Things such as thinking of curb appeal, getting their home ready for sale, finding the right people to help them with the sale, and then finding a new home. However, a recent survey says homeowners think one of the biggest obstacles is finding the right buyer at the right price—so they stay put and don’t sell at all.

The best way to sell your home is to have a motivated seller. It’s as simple as that. But it’s often difficult to be motivated when you’re the seller. You’ve lived in your home for a long time; pets have been there, and memories have been shared. You love the house, but selling it means moving to a new location and possibly living like a stranger. Fortunately, a way to be motivated is to sell your home.

Sellers of a home feel attached to the rate they get when they list their property. They feel they can’t negotiate because they signed a contract and can’t break it. But home sellers also feel attached to their interest rates because they’ve heard the horror stories of homeowners who couldn’t get another loan because of the loan-to-value ratio they had built up on their old loan.

The housing recovery is far from over, and buying a home is still one of the best investments one can make. But don’t be surprised if homes in your neighborhood ask for higher prices than you had hoped. In most cases, buyers are capitalizing on low-interest rates, while sellers are hesitant to accept anything less. However, one recent study claims that sellers are perhaps more attached to their low mortgage rates than buyers.

Currently, interest rates are extremely low, which likely means you won’t be getting much back when you finally sell. Nevertheless, some homeowners are keeping their houses on the market because they’re afraid of losing the low-interest rates. However, that doesn’t have to be the case. You may even have more power to negotiate your mortgage than you think.

How to sell a home at low rates

  • Selling a home at an affordable rate can be difficult, but there are several things you can do to help yourself. The housing market is competitive right now, and selling your home fast isn’t easy. But there are several things you can do to help the process. Open houses, great pricing, and staging your home are just a few areas that can improve your chance of selling your home.
  • Many homeowners looking to sell or refinance their homes will find that rates are low and that selling or refinancing a home can be easy. Before you decide to sell a home, you should consider a few things that can impact your ability to sell your home.
  • If you’re looking to put your home on the market in 2019, it’s time to start preparing. Your first step should be to price your home correctly. Many people underprice their homes, expecting them to sell for a higher price quickly. Typically, this doesn’t happen, as the market is much more competitive than a few years ago. This means you stand a good chance of finding the perfect buyer for your home if you price it competitively. You can then move on to staging your home, making minor adjustments around the home that will make it more appealing to potential buyers.

Low rates are key to buying a home, so it makes sense that many homeowners will be reluctant to accept an offer above their mortgage rate.

Selling your home is a busy, hectic, and sometimes stressful process. You may love your home and be reluctant to sell it, but that’s no reason to accept a below-market offer when you could have received more. The real estate industry is seeing a shift in buyer demand, with listings selling faster and for more money than ever before, so sellers who hold out for a better offer may be missing out on top dollar for their property.

Reluctant home sellers are sellers who are too attached to rates that are not reflective of the current market. Home sellers may be reluctant to list their homes at the current market rate for a variety of reasons. For example, they may have become attached to positive equity built up over the years and do not want to lose it by selling their homes for less than their mortgage balance. Others may be reluctant to list their home because they believe they can sell it for a higher price in the current market. While your home could sell for a higher price, it isn’t easy to estimate the market price of your home, so consider listing your home at the current market rate.