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6 Ways to Get Top Dollar for Your Home as Interest Rates Rise – The Motley Fool

Image source: Getty Images

The trick is to make it hard for a potential buyer to walk awa…….

Image source: Getty Images

The trick is to make it hard for a potential buyer to walk away from your house. 


Key points

  • As interest rates creep up, home sellers may have to do more to entice buyers.
  • Almost anything you do or spend to prepare your home for sale can be considered an investment.

If you’re currently selling your home, my husband and I are right there with you. It was with some trepidation (on my part) that he accepted a job out of state last week. I realize that 99% of my apprehension has to do with trying to sell a home as interest rates climb.  

Whether it’s the war in Ukraine or the spike in COVID-19 cases this month, the interest rate can best be described as “unstable.” Rates hit record lows in 2020 and 2021 due to the crushing economic impact of the global pandemic. As the number of cases began to wane, interest rates crept back up. Today, the average mortgage rate for a 30-year fixed-rate mortgage stands at 5.183%. 

The housing challenge

A look at average mortgage rates over the past 30 years illustrates that 5.183% is still below average, but as a seller, we have a couple of things working against us: 

  1. Mortgage rates averaged 2.96% between January and December of last year, leaving us all a little spoiled.
  2. The price of homes in the city we’re moving to are sky-high, meaning we need to get top dollar on the home we’re selling so we can buy another house instead of renting. 

Yes, we can rent in the new town, but to be frank with you, I don’t wanna. The very idea of moving two more times over the next 18 months or so is enough to make me want to take a nap. And so, I’m focusing on getting top dollar for our current home, no matter what’s going on with mortgage rates. 

Thinking proactively

One thing we have going for us right now is a desperately low level of housing inventory. Builders haven’t had the materials or labor they need to build up new inventory, baby boomers aren’t downsizing the way they used to, and people are generally less willing to put their homes on the market, only to get in bidding wars when it’s time to buy something new. 

That said, we have something going for …….

Source: https://www.fool.com/the-ascent/mortgages/articles/6-ways-to-get-top-dollar-for-your-home-as-interest-rates-rise/

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