Why Now Is a Good Time to Buy a Home Despite Rising Interest Rates
There’s no doubt about it, interest rates are on the rise (but still at historic lows). In fact, they’ve been steadily climbing for the past few years and don’t show any signs of slowing down. While this may have some people feeling skittish about buying a home, there are actually quite a few reasons why now is a great time to buy.
1. You May Be Able to Get Closing Costs Covered
In a competitive market, some sellers may be willing to cover all or part of your closing costs in order to sweeten the deal and get their home sold. This can be a huge help when you’re trying to come up with the money for things like loan origination fees, appraisal fees, and title insurance.
2. You’ll Probably Get a Full 7-Day Diligence Period
In a hot market, sellers are often hesitant to give buyers much time to inspect the property and back out of the deal if they find something they don’t like. But if you’re able to put together a strong offer, sellers may be more inclined to give you the full seven days to have the home inspected and make sure it’s really the one you want.
3. You May Be Able To Get 21 Days for Financing
Just like with the due diligence period, in a competitive market sellers may be more flexible on the financing contingency period as well. That means that instead of having just 14 days to get your loan funded, you may have three weeks – giving you some extra breathing room in case there are any delays with your lender.
4. Six Months Ago, Sellers Wouldn’t Have Allowed Any of This
If you go back just six months or so, you’ll see that buyers didn’t have nearly as much leverage as they do now. Sellers were getting multiple offers and could afford to be picky about who they worked with. But now that the market has cooled down just a bit, buyers are regaining some of that lost ground. So if you’re thinking about buying a home, now is definitely the time to do it!
If you're thinking about buying a home, now is a great time to do so! Interest rates are on the rise but there are still many reasons why buying now makes sense. From sellers being more willing to cover closing costs to getting extra time for due diligence and financing, buyers have regained some of the leverage they've lost over the past few years. So if you're ready to buy, don't wait – start looking for your dream home today! Send me a message!
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