Higher real estate interest rates can seem like a bad thing at first, but when you look at the big picture there are actually several benefits. In this video San Diego Realtor Kyle Whissel discusses the five main benefits of higher real estate interest rates and why they're good for both buyers and sellers.

So if you're thinking about buying a house in San Diego but you're freaking out because you keep hearing that interest rates have risen, I'm going to give you five unthought of benefits when it comes to higher interest rates.

I'm Kyle Whissel with Whissel Realty Group, and today I want to dive in and share some of the unthought of benefits that come along with higher interest rates. And if you're thinking about buying a home, you're probably like, "Well, screw that, rates are higher. I don't want to buy anymore." Well guess what? A lot of people are thinking the same thing. Number one on the list is there's a lot less competition in today's market. A lot of buyers have that same thought.

A lot of buyers were thinking about buying a home. The second interest rate shot up, they're like, "Screw this. I'm out. I'm going to just keep renting." Well, guess what? Rent is stupidly high in San Diego. According to zumper.com, the median price one bedroom rental in San Diego is $2,200. The median three bedroom rental is $4,000. So if you're thinking about, oh, I'm just going to go rent something instead of buying, let me know how you feel after you actually go out there and go look at a few rentals cause it's crazy expensive.

And if you are paying $4,000 a month for that three bedroom, you're helping somebody else pay their mortgage off rather than being the person having to pay somebody else's mortgage, pay your own mortgage. So appreciate the fact there's a lot less competition out there. Let all those people go rent places and throw 2000, 3000, 4000 plus dollars a month away while you're investing into your future. Because one thing I know, I've done this for 20 years now, there is no 10 year period in time that I've ever seen where home values have gone down. Have you ever met anybody who bought a home 20, 30 years ago who regrets it? No. You ever met anybody who rented a home 20, 30 years ago and regrets it? Yep. So don't be that person. I want to get you in the game.

So number two on the list, this is probably my favorite is you have so many more options out there. The number of homes for sales about double today what it was two or three months ago. So what that means for you is that you've got so many more homes to choose from. What I was seeing a lot of buyers do is just having to take whatever was available. It wasn't exactly what they wanted. It maybe wasn't the location that they wanted. It wasn't the number of bedrooms they wanted. It didn't have the yard they wanted. It didn't have the garage, well, now you got options. You don't have to just take whatever's available. You can kind of pick and choose and pick the home that's going to be right for you.

Now you can get the number of bedrooms you want. You can get the size of the yard you want, in the location that you want, which is great. It's a lot more fun to be a buyer today than it was 90 days ago. Next up on the list is you can actually have contingencies. And so if you're brand new to this, you're probably not familiar with it, but when you're buying a home, you're typically going to have three primary contingencies. One is going to be an inspection of the home, two is going to be an appraisal of the home, and three is going to be your loan getting dialed in for the home. So previously, you were having to write offers with little to no contingencies on them, which means you were going into these things, you were going to have to accept the home as is with no repairs completed.

A lot of times you were having to pay above the appraised value. And if you even told them you needed a contingency for your loan, they wouldn't touch your offer. Well, now you get all three of those again. So now you can actually protect yourself. You can go into a home and not have to roll the dice hoping that the home is going to come out okay with the inspection and that it's going to appraise. You don't have to roll the dice anymore like you had two 90 days ago. Now you can come in you can have all your proper protections so you can really make sure you're making the right choice for you and your family. Number four on the list is you can actually request repairs now.

So now when you get that home inspection done, if there's issues with the home, you can go back to the seller and renegotiate the deal with the seller. You couldn't do that 90 days ago. If you came to the seller and were like, "Oh yeah, this isn't working that, isn't working." The seller would laugh and be like, "I got 20 other offers, kick rocks." That's what was happening 90 days ago. Now, if it needs a new roof, if the HVAC system's not functioning, you can go back and renegotiate and work that price down a little bit more in your favor to compensate for those repairs that need to be made or you could request the seller actually complete the repairs. That didn't exist. Number five, and this is a special one.

Not all agents in San Diego know about this. This is kind of like a little secret, so hopefully you're still hanging in here on this video cause those who tuned out, they're going to miss this. But we still have options for you to go in and get a loan today in the threes. Where are a lot of lenders right now we're quoting rates in the fives and maybe even the sixes, I've got a special lender that can do loans in today's market in the threes.

So here's what's cool is now you can go in less competition, you can pick and choose which home you want, you can come in with contingencies, you can actually negotiate repairs, and you can still slide into a deal in the threes while everybody else is paying in the fives and sixes. So if you want to get the details on how to get this special mortgage rate in the threes, give us a call or shoot us a text at the number down below. That'll connect you with the team so we can tell you more about how to take advantage of this killer opportunity to be a buyer in today's market. I'm Kyle Whissel with Whissel Realty Group. Thanks for tuning in.

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