Struggling to Sell Your Home? Don't Make This Costly Mistake

“I’ll wait until next year...” “Maybe when rates fall…” “I can’t afford to buy right now…” High mortgage rates are pushing many people out of the home buying market. With fewer interested buyers, selling a home has become significantly harder than a couple of years ago. If you’re trying to sell now, don’t give up hope. We have ways that can help you save money and still sell your home at top price.

Should I lower my listing price?

After your home sits on the market for a while, you probably start brainstorming how you can get more eyes on your listing. The first instinct for most people is to lower the listing price. Ideally, the lower price will make the home more affordable and therefore more appealing to buyers. However, lowering your listing price can have a few unwanted impacts:

• Sometimes buyers take this as a sign that something is wrong with the house
• It reduces the amount of money you’ll get from the home sale
• Doesn’t actually help buyers save as much as you think

Plus, home prices aren’t the main thing turning buyers away right now. Rates are.

Rates are more influential than prices right now

Though both factors are contributing to decreased buyer affordability, rates are the main issue right now. Why do rates seem to matter more that home prices? Because in a buyer’s mind, if they wait 6 months, a year, or a couple years, rates will fall, and they’ll save hundreds on their monthly mortgage payment. The same isn’t necessarily true for prices. In other words, buyers would rather wait to get a better rate.

How to sell faster and save more money than a price reduction

The solution? Guarantee buyers a discounted rate. A temporary or permanent buydown is one option, but it’s hard to advertise on a home. Plus, a different option can lower a buyer’s monthly payment even more than a buydown. By spending the same money you’d spend on a price reduction or rate buydown, List & Lock can get sellers AND buyers more.

?List & Lock: seller benefits

• Ability to advertise discounted rate on listing
• CMG will contribute an additional 1% of loan amount to lower the rate further
• Customized marketing material including: Side rider with discounted rate Promotional social media posts Listing description for listing sites Open house flyer with rate options And more

So if you’re thinking about lowering the listing price of your home, ask us and your Realtor about List & Lock first!