Encourage Clients to Act Early
Mortgage rates have dropped, but buyer demand won't surge overnight. This is the ideal time to educate your clients on why they should move before the competition heats up.
Encourage clients to move before demand builds
With interest rates on a downward trend, there’s a window of opportunity for buyers to lock in favorable terms. But here’s the catch: just because rates are dropping doesn’t mean buyers are flooding the market—yet. Many potential homebuyers are still adjusting to the idea of lower rates, weighing their options, or waiting for the “perfect” time to buy.
As a realtor, you have a key role to play in encouraging your clients to take action before the market fully reacts to these rate changes. Once buyer demand ramps up, the competition for available homes will drive up prices, potentially offsetting the benefit of lower rates.
Why Timing Matters: A Preemptive Strategy for Buyers
It's important to remind your clients that the housing market tends to lag behind interest rate changes. It takes time for prospective buyers to realize the benefits, regain confidence, and enter the market in force. This is the exact moment to encourage your clients to act—not when the frenzy begins.
The current environment offers an opportunity to purchase homes at today’s prices before heightened demand puts upward pressure on those numbers. Those who wait for the herd could find themselves paying more for the same properties in a few months.
Educate and Empower: How to Guide Your Clients Now
Rates are falling, but there's no guarantee the decline will continue: Share current rate data with your clients and explain that while rates have dropped, they can fluctuate. Taking advantage now can secure them a better deal before the market adjusts.
Less competitions means better deals: Early movers often have more negotiation power, with fewer bidding wars and more options available.
Potential appreciation ahead: With rising demand comes higher prices. Educate your clients about how getting in now could save them money on their home purchase as prices rise in response to increased demand.
For Example, If your clients act now to purchase a $391,700 median-priced home (2023 NAR Report) they stand to gain roughly $16,850 in equity over the next year, assuming a home appreciation rate of 4.3% (CoreLogic).
Seize the Moment: Help clients make informed decisions
In the face of changing interest rates, buyers may feel uncertain about whether to act. This is where clear communication becomes your most powerful tool. By educating your clients about the long-term benefits of acting now, you help them make smarter, more confident decisions.
While it may take time for the market to fully react to the recent rate drop, this window won’t last forever. Now is the time to get your clients back out there, buying homes before the competition heats up and prices rise. By guiding them through this transitional period, you position yourself as an essential resource and ensure they don’t miss out on this unique opportunity.
Stay ahead of the curve—your clients will thank you for it.