Real Estate Expert Offers Tips for Buyers Scared of High Interest Rates and Sellers Spooked by Lower Home Values
Austin, TX, May 5, 2023 — Home sellers nationwide are coming off a record-breaking run that led to some of the lowest mortgage rates of all time, combined with some of the highest home prices ever seen. But 2023 is a different story. The U.S. housing market has been on a steady 12-month decline, resulting in dropping home values and dramatically rising interest rates.
“This dynamic shift in the real estate market has been putting both sellers and buyers in a spin,” says Ryan Rogers, who is in the top one percent of real estate agents in Austin, Texas.
Rogers, a residential real estate specialist with Douglas Elliman in Austin, says that this market condition change creates stress and confusion for people on both sides of the home buying experience.
“Buyers are having trouble getting over the fact that their interest rate for a loan has doubled in less than 12 months,” says Rogers. “Sellers, on the other hand, are having a hard time with the idea that their homes are not getting the prices they were previously.”
Rogers says buyers and sellers need to see that even in the current market, there is an opportunity to come out with a win. Some of his top advice includes:
• Remember that rates may be up, but prices are down. So, in the long run, the property probably isn’t costing you more than it would have at a lower interest rate.
• The rate you get today is not necessarily the rate for the life of the loan. Rates will come down again at some point in the future, and you can refinance.
• A property in a great location and excellent condition will always be desirable — regardless of interest rates.
• Beware of new homes in new neighborhood building projects. The builders will offer incentives, such as reduced commissions, paying for closing costs, and more. When you go to sell, those incentives won’t be there, and you may have a more challenging time unloading the property.
• If a house has been on the market for a while, you can afford to be more aggressive with your offer to test the water. When a home has been on the market for 3 or 4 months, the buyers may be more motivated to sell.
• Try to narrow it down to 2 or 3 houses you would like, and then make an offer on the one that has been on the market the longest.
• Don’t price too high coming out of the gate and insist on a price based on what you could have gotten for your home 10 months ago. Instead, be realistic and set a value based on today’s market.
• If you have a good buyer with a reasonable offer, but they are hesitant, offer a rate buy-down.
• Don’t test the market. Listen to your realtor when they tell you how to price the house to sell — and as quickly as possible. Pushing a price and then thinking you can always reduce it most often leads to getting less for the home than you would have if you had priced it correctly to begin with.
• Remember, the first offer is often the best, especially in today’s market. If you have a buyer who has made a fair offer, take it. Don’t wait for something better to come along.
• Go local, not global. Use a real estate agent who is a specialist in your area. Realtors unfamiliar with your neighborhood often don’t know the unique in and outs that can make a difference in whether your house sells.
• Looks really are everything. In this market, your property must have as much curb appeal as possible, be clean, well-cared for, and be in good shape. Most buyers today are unwilling to take on a “fix it” project. They don’t have money to do it.
• Be proactive and get an inspection ahead of time. The buyer still has the option to pay for their own, but it can sweeten the pot on selling the house.
About Ryan Rogers
A native Austinite, Rogers has expansive knowledge of the local real estate market and deeply rooted relationships with the community members his clients often need access to. Rogers is often the glue that connects his clients with everyone from plumbers and tilers to the manager of the local country club.
In addition to his day job, Rogers prioritizes giving back to his community. He supports a wide variety of organizations, including:
• Nominated for the 2018 “Man of the Year” for Leukemia & Lymphoma Society (LLS)
• Participated in the 2020 Austin Dancing with the Stars to raise money for the Center for Child Protection
• Advocate for The Alzheimer’s Foundation
• Supports and volunteers for the English Bulldog Rescue and Foster Organization
• Member of the Board of Directors for the Neighborhood Longhorns Program, a charity organization affiliated with the University of Texas at Austin
When not busy connecting buyers and sellers, Rogers travels around the world and to the beach in the Port Aransas area.