Dawna is a real pro! I am so glad she was on our team. For nearly four years she guided us through the volatility of the San Luis Obispo housing market, answering our questions from a far (we live in Montana) and flagging appropriate properties or developments along the way. When the timing was right and we found just what we were looking for, Dawna expertly guided us through the negotiations and inspections. This wasn't our first home buying experience, but we really appreciated how easy Dawna and her assistant made the whole process. We successfully closed in less than 30 days.
1. Ignore the increase in interest rates. Buyers will only be able to get the loan and rate that is available at any given time. Set up the timing for listing your property at a time that works best for you. If the property sells quickly, you may need to start your transition sooner than you expected and if you need a loan, you may be subject to the same market conditions.
2. Price slightly below the comparable sales. Buyers will be attracted to your price and may be willing to add additional cash or gifts to increase their offer so they can keep the loan amount/payments the same.
3. Consider what terms will be attractive to you, beyond price. In some cases buyers may be willing to let you stay in the property beyond closing, and/or pay some of your closing costs, among other concessions. This may be more affordable to a buyer than risking an increase in their interest rate or payment amount on a 30-year loan.
4. Do the math. To help determine the market for your property, calculate payments based on a conventional 30-year loan with 20% down. With this amount, figuring that the loan payment may be about 40% of a buyer’s monthly income, you will get an idea of the income level and lifestyle of a possible buyer. Often this is suprising to a seller.
5. Consider seller financing. If the property that you are selling has no current financing, this may be a beneficial option. If you put your cash after closing into a savings account, you may get a much lower rate of return than if a buyer is making payments to you at a current market interest rate.