How can a real estate agent save a home seller $50,000-$60,000 by moving sooner?

[Mike Schorah]

The market is going to go up in the next 5 years. Everyone has a timeline of when interest rates are going to change. Interest rates need to drop a certain amount in order for a person to make a transaction right now. Assume it’s 1-2%. Everyone has their own price point. Assume it’s $600,000. If rates dropped 1-2% on a $600,000 home, it would cost a buyer $3,400 a month. Most people are unsure of this. So over the next year, assume interest rates are going to drop in 6 months to a year. If that costs someone $200/mo ($2,400 over 24 months) more if they bought right now, assuming over the next year interest rates are going to drop in 6 months to a year.. Let’s make it $10,000. Let’s just quadruple that thing. A lot of people are sitting on the sideline right now for interest rates to come down. If interest rates drop, a ton of people are going to get in and real estate prices are going to go up a ton if you’re back in bidding wars. Each market has an average over list price of offers they were getting back in 2022 or during COVID times. It’s a seller’s market.