Three ways to help buyers who are waiting for rates to drop.
How can you best handle buyer clients who are waiting for interest rates to drop before making their real estate move? Today I’ll share a few key points that will help you overcome buyer objections:
1. Find out how long they are willing to wait. If it takes five years or 20 years for interest rates to drop, would they wait that long before purchasing? They have the option to wait, but they should know that they could be waiting for a long time.
2. Provide facts about interest rate trends. In the last 50 years, there was only one time when mortgage rates were below 3.5%, and that was in 2020 and 2021. At 1:00 in the video, you’ll see a graph that shows the average mortgage rates over time. While there were times when rates got as high as 18%, historically, rates have been in the 5% to 7% range since 1971. If you take that into consideration, rates are just simply starting to normalize. The 2% and 3% rates we saw in the last couple of years were just not sustainable in the long run.
“Buyers have the option to wait, but they could be waiting for a long time.”
3. Provide a solution to get buyers to act now. Instead of waiting for a rate drop that may not happen for years, consider this: buy now before rates get any higher. Sellers are now motivated and are starting to negotiate again. Some are even taking offers below listing price and paying for buyers’ closing costs. All of this makes it easier for buyers to get into a home today.
If rates happen to fall in a few years, buyers can refinance down to a lower rate and then lower the monthly payment at that time. Are you ready to help your buyers take advantage of the current market opportunities? If you’d like more information about how to coach your buyers during this market change or want data to provide to get buyers to make a move now, contact us today. Our coaches will work with you to put a defined script in place so you can be the market expert—and remember, it’s not the market, it’s the marketing that makes the difference.
