Proven strategies to help you succeed in today’s high interest rate market.
How do you close more sales in a market with high interest rates? This is a big question for Realtors. Today I’m sharing some actionable ideas to help you overcome the impact of high interest rates on your real estate sales:
1. Educate your clients. Help your clients understand that while interest rates are higher compared to recent years, historically they are still within reasonable ranges. Emphasize the security and predictability of fixed-rate mortgages compared to rental agreements or uncertain future rate hikes.
2. Explore financing alternatives. Highlight lesser-discussed financing options like adjustable-rate mortgages, such as the 3-2-1 and 2-1 rate buy-downs. These products allow buyers to secure lower rates for the initial years, with the possibility of refinancing when rates become more favorable.
3. Owner financing opportunities. Consider exploring owner financing options, especially with sellers who own properties outright. Some sellers might be open to creative terms and financing arrangements that provide buyers with more favorable rates than prevailing market rates.
“The goal is to secure your share of the market and embrace inventive strategies to stand out.”
4. Target cash buyers. Identify and engage with cash buyers, often found in the investor pool. Collaborating with investors can mitigate the interest rate concern altogether, as they don’t rely on mortgage financing.
5. Focus on seasoned buyers. Concentrate on segments like baby boomers and age-restricted buyers who typically have more equity and savings. Their larger down payments reduce the impact of higher interest rates on their overall financial commitment.
6. Find motivated mortgage buyers. Currently, we’re spotting these eager buyers in a couple of key areas. Firstly, they’re emerging from regions with higher property values, like Los Angeles. Many Californians are making the move here to Las Vegas, often selling their homes at significantly higher prices than the median rates in our market. This trend creates an enticing opportunity for them, regardless of interest rates. Moreover, there’s another avenue to explore: buyers who are also sellers. These individuals often boast substantial equity due to market shifts over the past five to ten years, seen in various parts of the country. This influx of equity, whether moderate or substantial, can be channeled into larger property purchases, mitigating the impact of the higher interest rates.
There’s no shortage of buyers out there. While the market might seem a bit slower, there’s still a steady stream of activity, with over 3,000 units changing hands every month in this town. The goal is to secure your share of the market and embrace inventive strategies to stand out and capitalize on this dynamic environment. If you need more help with finding success in today’s high interest rate market, call or email us. We’re always happy to help.
