The American economy is currently in a very interesting phase. People who are trying to sell a house in Detroit MI are now seeing the impact of high interest rates. The local real estate market is quite different than it was in the previous few years. We are still dealing with inflation and extreme price increases on things like groceries and other goods. There are also other effects happening as a result, such as car loan defaults, increased foreclosure filings and mortgage defaults. Many potential homebuyers are now deciding to put off purchasing a house, because they can’t qualify for a home loan. The impact of high interest rates are making it more and more difficult for many buyers to get a loan approval. So, if you are trying to sell your home in Detroit, how can you overcome these challenges? Well, let’s dig in and discuss some viable solutions!
Stay informed
It’s always good to remain well informed on the current trends when selling your house. This will keep your expectations in check, and could potentially help you achieve your goal for a successful sale. The interest rate hikes are creating challenges for home sellers by eliminating a large number of buyers from the market. When trying to figure out how much money you could potentially sell your home for, pay extra attention to the comparable sold homes within the last 90 days. If you try and compare the sales from beyond 3 months prior, the results will be less accurate. Property values in many areas within the city of Detroit, are either staying flat or slowly sliding downward, depending on the neighborhood.
Repairs cost more today
As mentioned in the introduction of this article, the cost of goods and services have increased dramatically recently. The prices associated with home improvement and construction materials have gone way up. What you would have paid for certain repairs 3 to 5 years ago, is not what you would pay today. In many cases, it may not be worth doing extra repairs or updates before selling, because there may not be a return on your investment. The city of Detroit has also been cracking down on keeping things up to code lately, and this can have an effect on your repair costs and your bottom line, when selling your property.
Think about cash
Having someone who can buy your house for cash in Detroit, is oftentimes the best solution under these market conditions. There are still some cash buyers in the market who are actively buying. These homebuyers are not necessarily quite as aggressive as in recent years, however they are still making purchases. Detroit Fair Offer is still buying houses in the Metro Detroit area. If you are concerned about the impact of high interest rates as a seller, contact us! 313-647-8806