To buy or not to buy? That’s the question many prospective buyers are currently asking themselves, and it directly affects sellers. Higher interest rates on loans are currently causing hesitancy and uncertainty regarding real estate purchases. What does this mean for owners who want or need to sell right now?
Real estate experts are currently observing a decline in the willingness of potential buyers to purchase property. Many simply can no longer afford it. And those who are still active in the market as buyers can usually afford less property than before the increased inflation and rising interest rates.
Impact on sales duration
This means a longer marketing period for sellers – if a buyer is eventually found at all. This trend can also be observed in major metropolitan areas, according to a recent market report . Furthermore, due to increased living costs and loan interest rates, there are fewer prospective buyers than in previous years. Therefore, property owners currently seeking reliable buyers should contact a professional real estate agent. They can access their database of search queries and pre-select suitable potential buyers.
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Lower your price expectations
Many sellers are currently finding it easier, or even the only way, to close a sale if they agree to a price reduction. This is especially true for owners who urgently need to sell due to impending foreclosure or other reasons, often leaving them with no other option. The problem is that upcoming expenses, such as moving, inheritance tax, or a place in a retirement home, can be financed with less money from the sale. Those who need to pay off or settle a mortgage are also in a worse position. Negotiation skills are crucial now – even if the price has to be reduced. An experienced real estate agent can provide excellent support to owners during the negotiation phase.
Significant drop in demand for properties with gas supply
The energy crisis that emerged in 2022 is causing additional problems for sellers of properties that rely primarily on gas as an energy source. Many prospective buyers currently venturing into property purchases want to avoid gas. Properties that require energy-efficient upgrades or maintenance are also finding it more difficult to sell. This is partly due to the shortage of skilled tradespeople and supply bottlenecks for building materials.
To improve their chances of selling and increase the price, owners can address damages, make necessary modifications, and rectify other issues beforehand. A real estate agent can advise owners on value-enhancing and mandatory measures and provide recommendations for tradespeople or energy consultants.
Are you having difficulties selling your property? We offer advice and support. Contact us.
Notes
For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.
This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.
Photo: © Syda_Productions/Depositphotos.com
