Could Low Mortgage Rates Help Sell Your Home?

[Jul 17, 2010.]

 

If you've had a tough time selling your home recently, don't give up. You just may need to rethink your strategy and take into account some changing conditions in the housing market. Here are some things to consider as you continue to market your property.

--Current mortgage rates are at historical lows. That means that folks who were reluctant to apply for a mortgage loan previously, may finally be ready to take the plunge into home ownership. The chances are that if you do receive an offer on your home, it is going to be from a borrower who has been pre-approved for a mortgage loan so they've already had their income and assets verified. There is some risk in accepting an offer from a buyer who has not been pre-approved for a mortgage loan because the deal could fall through if they aren't approved for financing.

--You may need to lower your price. Housing prices have fallen in many areas and home buyers may be reluctant to pay top dollar for a property. Even if your real estate agent did a comparative analysis of homes in your area when you first listed your property, it may be time for a new report. The longer you've been trying to sell your house, the more conditions in your local housing market may have changed. You want the most recent sales data to help arrive at a fair price.

--Consider a short sale if you need to sell your home to avoid foreclosure. A short sale occurs when a mortgage lender agrees to accept less than what is owed on a home mortgage. The incentive for a mortgage lender is that it receives some of what's owed on the balance and does not have to worry about later selling the property as it would with a foreclosure.

--You may need to up your game when marketing your property. Online listings should have lots of photos that highlight the best parts of your home. Also, your home should always been clean and free of clutter when prospectives buyers visit. Hire a home stager if necessary to help you make the best impression on buyers.

Don't assume that because you couldn't sell your home a year ago you won't be able to do so now. Tweak your marketing strategy and try to appeal to today's home buyers who have low mortgage rates on their side as they search for a property to buy.

 

About Author:

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.