December 21st, 2015 By H&H Real Estate Media in Blog.

Why Interest Rates are Important to Sellers, and Why They Shouldn’t Wail Until Spring to List.

This time of the year I am asked if Sellers’s should wait until spring to list their home.  Or,  I am asked what is the best time to list my home.  The facts are that homes sell every month of the year, including winter and the holidays.     Here I would like to summarize 3 reasons why sellers shouldn’t wait to list their homes in the Baton Rouge Metro area..


1..  Interest Rates Are Important to Sellers.  Most experts agree they will rise in 2016 and 2017.   This is extremely important  not only to buyers but also to sellers as explained in this video::

In summary, As interest rates rise, buyers fall out of being able to afford a home they previously qualified to buy.   As fewer buyers are available, this can force prices down or increase length of time on the market.  And an interest rate jump affects higher end subdivisions even more than starter neighborhoods.


2.  Transferring Buyers Don’t Wait Until Spring.  Not only is there a risk that interest rates may rise and they can’t afford as much home but they are anxious to get settled.  Many corporations transfer employees from November thru February which are often slower business times or year end periods when new budgets kick in by the next fiscal year.  Transferring employees are highly motivated and make decisions quickly unlike many local buyers who take several months to decide on a home.  They look and buy and close contracts quickly and don’t wait until spring as they want to buy quickly to start their new jobs.   Two of the three corporate moves of my family were between November and Christmas.   You don’t want to miss out on these valuable serious buyers.


3.  Gains in Equity Can be Offset by Rising Interest Rates.   Some sellers feel they will wait a year or two to build more equity before moving.  They are assuming that values will rise in their area.  The problem with waiting is that interest rates could rise.   Then increasing rates may  decrease the number of homeowners who can buy your home, changing the market and cause a longer time on the market before you can find a buyer .  Or even worse if it changes the supply and demand in your price range, it might drive down values in your area which would mean a decrease in equity rather than an appreciation in equity and thereby negate any equity build up from waiting .

Another reason interest rates are important to sellers of Baton Rouge Homes, is that as interest rates rise the amount of home you can buy after you sell also declines.   So, even if you gain some equity, that gain may be off set  by the loss in buying power in your new home.


In summary interest rates are important to sellers and timing of your listing is important to sellers of Baton Rouge Homes in order to get the most equity to reinvest in your future home, to capture transferees who must buy now, and to have largest number of potential buyers possible to get the most money in the fastest possible time.

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