Higher Rates Don’t Mean a Bad Time to Buy

By Dustin Cabrera

Dustin Cabrera is a partner of The Fine Living Group, one of the top 100 teams in the nation, at EXP Realty. His core values, hard work, and passion for helping people achieve their goals through real estate have taken him far in his career.

A lot of people hear that rates are up and simply assume it is a bad time to buy a house. I understand why. But I want to tell you the truth about what I am seeing in the market right now, and it is the opposite of what most people think. For the right buyer, this is actually one of the better markets we have had in a while. Here is why.

Here is what is really going on. Yes, rates are higher than they were, so the monthly payment can be higher, and I am not going to pretend otherwise. But because rates went up, a lot of buyers got scared and stepped out of the market. When those buyers step out, the ones who stay in gain something they did not have a couple of years ago: room to negotiate.

Think back to the frenzy, when you would find a house and face fifteen offers, people waiving inspections and paying far over asking with no chance to ask for anything. That is mostly gone right now. So if you can handle the monthly payment, you are walking into a completely different situation than the person who bought in 2021.

Right now you have real negotiating power, and it saves you actual money. I am seeing sellers do things they would not have done a couple of years ago. They are contributing toward closing costs. They are making repairs instead of saying take it or leave it. They are dropping the price. These are called concessions, and from what I am seeing out here right now, they are not rare, they are common. What that means for you is simple: you can come to the closing table with less money out of your pocket. That is real money that stays with you, and it is money the buyers from a few years ago never got to keep.

Be straight with yourself about the rate, too. Real estate moves in cycles. Rates are high right now, but no one knows a rate stays where it is forever. Here is the honest way to think about it. The deal you negotiate today, the price, the closing help, the repairs, you lock that in right now, when you buy, and it is yours. The rate is the one piece that can change later.

If rates come down the road, you may have the option to refinance, if it makes sense for your situation at that time. I am not promising rates will drop, because no one can promise that. The point is this: you negotiate the deal today, and you keep the door open on the rate for later. The good deal is the part you get to keep for sure.

I also want to be honest about the other side, because it is not all one-sided. If you are selling right now, this market asks more of you. Buyers are negotiating harder, so as a seller you have to be realistic and flexible. You might have to help with closing costs, make some repairs, or adjust your price to what buyers will actually pay today, not what your neighbor got in 2021.

And that is okay, because the deals that actually happen right now are the ones where both sides understand the market they are in. The seller gets their home sold and moves on with their life. The buyer gets terms and concessions they could never have gotten when things were red hot. When everybody is realistic, everybody wins. If you want to see how I help buyers and sellers work this market, you can learn more on my website.

So here is the bottom line. Higher rates do not automatically mean it is a bad time to buy. For the right buyer, someone who can handle the payment, less competition and more negotiating power add up to a real opportunity. And if you are selling, being realistic about today’s market is what gets your home sold. Either way, the key is understanding the market you are actually in, not the one from a few years ago.

If you are thinking about buying or selling anywhere in the DMV and you want a straight, honest answer about your situation, that is what I am here for. Call me at 240-416-3444, email me at dustin.cabrera@thefinelivinggroup.com, or visit dustintalks.thefinelivinggroup.com.

I’ll tell you what I really think, whether that’s buy now or wait.