Where Is the Opportunity in a High-Interest Environment?

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Interest rates are higher than they’ve been in the past. So, where is the opportunity in buying a home while interest rates are high?

The good news is there is always room for changing your interest rates by refinancing later. Why not take advantage of lower home prices now, knowing you can change the interest rate later?

Benefits of Home Buying in a High-Interest Environment

It isn’t all bad news if you are looking for a home in the current climate. Look at some of the positives that may come out of it:

Upgrading a Home Size: If you sell a smaller home to get a house with more space, you may not get the sale price that you imagined. But the good news is that if you get 20% less in the purchase price of your smaller home, that means you will pay 20% less for the bigger home than you would have a few months ago.

Better Home Prices: Homes were priced much higher in a low-interest rate environment when homebuyers could afford more. Now home prices are smaller as you search for homes during the high-interest climate.

Negotiation Flexibility: As a home buyer, you have more negotiation power. Instead of having to scramble and take what you can get in order to secure a home, you can ask for concessions. Some terms and credits may include covered closing costs and appraisal fees. You have more power to ask for repairs after the inspection comes back. Or you can ask for money off the selling price if something in the home needs to be fixed.

The real estate market is tricky right now, and rates are high. That doesn’t mean you should stop yourself from buying a home if that’s what you need. Instead, work with an experience real estate professional to get you a home despite the high-interest environment.

If you would benefit from some of these situations, contact our office in Temecula. We can talk about your real estate strategy and what it will take to get the house you’ve had your eye on. There is never a time to stop investing in real estate. Send me a text or call (951) 473-0390 to chat. We can also communicate through email at [email protected].