WHY ARE INTEREST RATES IMPORTANT TO SELLERS OF BATON ROUGE HOMES?

Reblogger Jane Chaulklin-Schott
Real Estate Agent with TEAMCONNECT REALTY - (407) 394-9766

This morning I went to the site of ActiveRain member, Ann Dail, Broker/Realtor,  Baton Rouge, Louisiana. Watching the TV News reports on the devastating floods in that area, I wondered about all the Home Owners and especially those without flood insurance. I came across Ann's post on interest rates and felt it pertains to all of us in the real estate field and clicked on re-blog. Have a great day, Rainers.

Original content by Ann Dail

Why Interest Rates are Improtant to Sellers, and Why They Shouldn't Wail Until Spring to List.

This time of the year I am asked if Sellers's should wait until spring to list thier home.  Or,  I am asked what is the best time to list my home.  The facts are that homes sell every month of the year, including winter and the holidays.   Some of my most productive months have been November thru February.  Here I would like to summarize 3 reasons why sellers shouldn't wait to list their Baton Rouge Homes.

 

1..  Interest Rates Are Important to Sellers.  Most experts agree they will rise in 2016 and 2017.   This is extremely important  not only to buyers but also to sellers and here is why:

 

 

As interest rates rise, buyers fall out of being able to afford a home they proviously qualified to buy.   As fewer buyers are available, this can force prices down or increase length of time on the market.  And an interest rate jump affects higher end subdivisions even more than starter neighborhoods.

 

2.  Transferring Buyers Don't Wait Until Spring.  Many corporations transfer employeed from November thru February which are often slower business times or year end periods when new budgets kick in by the next fisccal year.  Transferring employees are highly motivated and make decisions quickly unlike many local buyers who take several months to decide on a home.  They look and buy and close contracts quickly and don't wait until spring as they want to be selled quickly to start their new jobs.   Two of the three corporate moves of my family were between November and Christmas.   You don't want to miss out on these valuable serious buyers.

 

3.  Gains in Equity Can be Offset by Rising Interest Rates.   Some feel they will wait a year or two to build more equity before moving.  The problem with waiting now is that interest rates could rise.  Interest rates are important to sellers as explained in the above video.   When increasing rates decrease the number of homeowners who can buy your home. then the market can drive down the price you can ask thereby negating equity build up from waiting.

Another reason interest rates are important to sellers of Baton Rouge Homes, is that as interest rates rise the amount of home you can buy after you sell also declines.   So, whatever equity you gain may be off set  by the loss in buying power in your new home.

 

In summary interest rates are important to sellers and timing of your listing is important to sellers of Baton Rouge Homes to get the most equity to reinvest in your future home, to capture transferees who must buy now, and to have largest number of potential buyers possible to get the most money in the fastest possible time.

 

 If you are looking to sell or buy a home, we would be honored to help you!

http://www.BatonRougeAreaHomes.com  

 

 

 

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Rainmaker
2,886,297
James Dray
Fathom Realty - Rogers, AR
Exceptional Agents, Outstanding Results

Good morning Jane. We all know it is coming, just don't know when.  Buyers need to buy and not wait. 

Aug 18, 2016 08:19 PM #1
Rainmaker
741,919
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836

Good day to you, James Dray.  Sad, but true, it is coming.  Believe we Realtors may have a fairly large databases.   I got a 'heads up,'   a reminder, in reading Ann Dail's post - something we all know that is in our future and only a matter of time - rising interest rates.  

Setting aside a special week for a 'reach-out' to my people - phone calls and emails.  Thanks for your comment...make it a wonderful day, you with all that information on so many people and their lives.    

Aug 19, 2016 04:59 AM #2
Rainmaker
5,346,704
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much for sharing this reblog.

Have a great day and an outstanding week.

Aug 23, 2016 10:29 AM #3
Ambassador
3,982,858
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I appreciate you sharing this post and glad I read it. 

Aug 26, 2016 01:56 AM #4
Rainmaker
4,797,120
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Jane.  This is an excellent post for a re-blog and should be read by anyone that is currently thinking of buying a home with financing.

Sep 02, 2016 10:53 PM #5
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Rainmaker
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Jane Chaulklin-Schott

TeamConnect Luxury Homes - Orlando, Florida, 32836
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