Why Sellers Should Consider Flat Fee MLS in the 2024 Housing Market as Interest Rates Shift

The housing market can change depending on the fluctuation of interest rates. When the interest rates drop, the housing market becomes hot for buyers and sellers. On the other hand, when the interest rate peaks, the housing market tends to go through a slim period. Thus, keeping an eye on the interest rate is important. The everchanging interest rate can dictate for how much you will be able to sell your property. In 2024, the interest rate is relatively lower than the previous year. Markets, however, predict that in September 2024 the Fed will begin reducing interest rates. Therefore, flat-fee MLS service providers also recommend sellers price their property subject to interest rate fluctuations. Pricing a property based on interest rate fluctuations can help sellers find quick buyers and get the best deals.

How Can Fluctuations in Interest Rates Affect the Kind of Offers Sellers Get for Their Property?

Interest rate fluctuations can be inversely proportional to the number of buyers entering the real estate market. When you plan on selling your property with the help of flat fee MLS Listing services, the realtor might suggest you consider the interest rate when listing the property. But, why?

• Demand:

Demand is a basic economic concept that affects almost all industries and sectors. When the interest rate in the real estate market soars, it creates a dearth of demand for houses in the market. Buyers tend to be reluctant to purchase property during this time. If you choose to put your property on the market with flat fee MLS services, there is a chance that your property might not receive quantity and quality-wise as many offers.

• Supply:

Another concept of economics that governs all industries and sectors is supply. When the supply is relatively more than the demand, it is only natural to observe a dip in the market. As a result, when the interest rate goes up and the number of buyers slows down, it can result in a limited sale of properties on the market. Sellers can also be seen to cut down on their initial asking price in desperation to sell their property. As a result, flat-fee MLS service providers may advise you not to put your property up for sale during this time.

• Competition:

When the interest rate is high and the flow of buyers in the market is low, it can lead to steep competition amongst properties available for sale in the market. The steep competition can force you to lower the prices to a number you aren’t comfortable dropping down to. This is a huge reason to keep an eye on the interest rate before putting your property on the market for a flat fee MLS services.

• Negotiations:

The negotiations are a critical part of the sale of the property. When the interest rate is higher, it can push the seller’s back against the wall. The low influx of buyers, limited inflow of offers, and high competition mean sellers can’t be in a commanding position against buyers on the negotiation table. The seller has to be more reasonable and flexible in their approach. They can’t be too assertive about the asking price if they want to sell their property as soon as possible. Thus, even your flat fee MLS listing can’t yield better deals.

Depending on the interest rate of the real estate, you should think about putting your property on sale. The time at which you are listing your property on the flat fee MLS can determine the quality of offers you may receive. This is why realtors extending flat-fee MLS service always suggest keeping track of the interest rate fluctuations.