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What Current Low Interest Rates Mean for Home Sellers

Posted by Jeff Sallan on Monday, July 20th, 2020 at 1:15pm.

Interest rates hit historic lows (again) last week. While that is excellent news for home buyers, what does that mean for homeowners who are planning to sell their property? We cover the most common situations, however, if you have specific questions about buying or selling real estate in Reno-Sparks, please reach out. 

Greater Demand: With buyers now having more buying power- the total amount they will be spending over the life of the mortgage will be less with lower interest rates, so they can afford more- we typically sees more buyer demand. 

Potentially Receive Multiple Offers: Depending on the price point of the home for sale, sellers are seeing multiple offers because the demand in the Reno-Sparks area is so high. Check out the latest local real estate market update for the most up to date market information. 

Coronavirus Shutdown: We're in a very unique situation. Many home buyers who would have purchased homes during the spring were quarantined and are just now beginning to make their home purchases. Experts are expecting an even greater increase in home buyers as the summer goes on. 

May Choose Not to Sell: Some homeowners are refinancing their homes today at the lower interest rate and decide it's no longer as urgent to sell.

Purchasing Power: Most homeowners are planning to purchase another home when they sell their current property. Unless they will be paying cash for their new home, the low interest rates are advantageous when the home sellers become home buyers. 

Work With a Local Expert: Even if you have substantial equity in your property, you still want to receive fair offers for your home. When choosing a real estate agent to assist you in the sale of your home, be sure that they are local experts with experience selling in your neighborhood, have a solid marketing plan, and have excellent references.

If you are planning to sell your home in the near future to take advantage of the low interest rates, please reach out. We would be honored to assist you however we can, starting with a complimentary home valuation, so you have a better idea what your home may be worth in today's market. 

 

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