Selling your property can be one of the most stressful milestones – the uncertainty, financial and time pressures, not to mention the upkeep of a viewing-ready-home!

The recent upward trend in interest rates has introduced a new dynamic to those looking to purchase property. As these borrowing costs increase, it’s naturally for sellers to wonder how this will affect prospective buyers and whether they’ll achieve their desired sales price.

Understanding the impact:

• Reduced buyer affordability: Higher interest rates can limit the amount buyers can borrow, potentially reducing their purchasing power. This may lead to fewer offers or lower offers on properties.
• Increased selling pressure: As more sellers may be motivated to sell to avoid higher mortgage costs, it could increase competition in the market.
• Market adjustments: The market may need time to adjust to the changing interest rate environment. This could result in a temporary slowdown in activity or a slight decrease in property prices.

Strategies for sellers in a rising interest rate environment:

Price your property competitively

Based on recent sales activity in your area, market conditions and the presentation of your property in addition to local knowledge, your agent will determine a fair and competitive asking price.

Highlight your property’s unique selling points

Of course features such as location, condition and amenities are important but highlighting the property’s energy efficiency, storage and neighbourhood community can also help. Consider adding a walk-through video to your marketing efforts.

Be flexible with negotiations

In a competitive market, it may be necessary to be more flexible with negotiations to attract buyers. This can especially difficult if your property has lost value, but depending on your timings – and your next property purchase – some flexibility may benefit you in the long run.

Partner with a trusted agent

A skilled estate agent can help you navigate the market, negotiate effectively, and achieve the best possible outcome. Ensure your agent has an established presence in the North East market and access to the national property portals such as RightMove and Zoopla to ensure maximum exposure across the UK.

The bottom line:

While rising interest rates may present challenges for sellers, it’s important to remember that the Aberdeen city and shire property markets are resilient. By understanding the impact of interest rates and implementing effective strategies, sellers can still achieve their goals and find the right buyer for their property.

With 15 years’ experience in the North East sales and lettings markets, we can assure all sellers that they are in safe hands with Northwood.

To discuss your options or to arrange a free home valuation, contact us today.

Aberdeen: 01224 218450 | aberdeen@northwooduk.com | 207-211 Rosemount Place, Aberdeen, AB25 2XS // Banchory: 01330 700772 | aberdeenshire@northwooduk.com | 57 Banchory High Street, Banchory, AB31 5TJ // Inverurie: 01467 530591 | aberdeenshire@northwooduk.com | 23 West High Street, Inverurie, AB51 3SA