How Will Rising Interest Rates Affect You as a Buyer or Seller

 
Whether you are buying or selling, an increase in interest rates may affect you. I am here to explain.

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Today we are going to discuss what happens when rising interest rates affect buyers and sellers. What are the dynamic forces that interplay with the rising interest rate?

Buyers who have been sitting on the fence and looking for a great deal will have a tendency to become more motivated when they see rates rise. This is because when the rates rise by even 1%, it will affect a buyer’s qualification by 7% to 8% of the purchase price. Buyers become more motivated to find a home that is a match and make a move before the rates increase even higher.

Meanwhile, sellers will realize that in a rate-increasing environment, that buyers are going to qualify for less money. When considering offers on the table, sellers will know that there is the possibility that the longer they wait the fewer buyers will actually qualify for that sale.

Rising interest rates will affect buyers and sellers.

Buyers who are waiting for rates to decrease may be disappointed because the rates may actually level off or continue to increase. This can sometimes cause buyers to disqualify, particularly in markets that are very hot seller’s markets with multiple buyers bidding on properties.

Finally, sellers will oftentimes realize that their own affordability in the market for a new home will be restricted. Once the sale is consummated, sellers have to find a new home and the rising interest rates will affect their affordability as well.

If you have any questions about this or about buying or selling, please feel free to contact me by phone or email. I look forward to speaking with you about your real estate needs soon.

Should You Get the Police Department Involved with Your Real Estate Transaction?

Getting the local police involved with a real estate issue is sometimes necessary. Today I have a list of some of the common circumstances when you should call for backup.

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Buying a Massachusetts home? Click here for full MLS access

Today I want to talk to you about how police departments can help facilitate complicated real estate transactions when something illegal may be happening.

Today I am going to go through some circumstances when it may be helpful to utilize the support of a police department.

It is wise to take advantage of the resources that you have with your local police or Sheriff's Department and have them facilitate when something illegal is happening.

• A resident tenant is poaching on a property after a multi-family home has been sold and the tenant refuses to vacate even though the sale has been completed.

• A trailing spouse who is in a contentious divorce refuses to move out of the home even though the home has been sold or is nearing the completion of the sale.

• A court order to vacate has been ignored.

• A seller remains illegally in the home because a spouse has sold the home and the person wanted to stay.

• Legal access to a home by a buyer, appraiser, or inspector is being denied by the current owner inappropriately.

For any of those circumstances, it is wise to take advantage of the resources that you have with your local police or Sheriff's Department. They can work as a mediator or interpleader to help negotiate with the offending party. Or, sometimes, they are able to look up the identity and the name of that party by using their resources.

If you have any questions regarding who might be able to facilitate a challenging transaction involving real estate or have any other real estate related inquiries, please feel free to reach out to me by phone or online. I would be happy to assist in any way that I can.