Home loan rates have enjoyed historically low numbers for quite some time. The ebb and flow of rates have recently fluctuated both slightly up and slightly down. But experts are predicting a trending rise in rates. How might this impact you if you decide to sell your home in the next year?
Mortgage Loan Costs
Loans have been harder to obtain since the watershed housing bubble burst. Heftier down payments and higher FICO scores have become standard requirements, and buyers have been paying more overall in fees and insurance.
Adjustable rate mortgages are always kinder to the wallet in the short term, but can potentially result in shocking payment hikes if a new loan has to be negotiated a few years down the line at a significantly higher rate.
Add to that, the assessment of many real estate trend watchers that we may be entering yet another housing bubble, and you’ll begin to understand why some buyers may be more demanding today than in the past, despite record low interest rates.
Positioning Your Property
Position your home with these factors in mind. Offer buyers a solid property that is in turn-key, ready-to-move-in condition.
Because they need to re-seed their nest egg, or set aside funds in anticipation of future adjustable rate increases, buyers are less interested in homes that require additional expenses of modernization or repair.
A fresh paint job isn’t enough: today’s buyers want worry-free homes, from the bones out. Consider arranging for a professional home inspection on your house before listing, to discover any concerns about your property. Bring your house up to code and up to date before putting it on the market.
Mortgage Rates and Your Home’s Sale? The ability to list your home with a clean bill of property health will go a long way toward grabbing the attention of buyers.
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