Suze Orman Has This One Warning for Home Sellers

You don't want to ignore what she has to say.

Ask the typical person if they'd rather be selling a home or buying one right now, and most people would probably favor the former. The reality is that today's real estate market is extremely competitive, and buyers are constantly facing challenges ranging from rising mortgage rates to sky-high home prices to bidding wars.

Sellers, on the other hand, have been sitting pretty. Record low inventory levels have given sellers a clear advantage, and many have taken the opportunity to command ultra-high prices for their homes. In fact, buyers have been so desperate to scoop up homes that sellers have been able to get away with not making repairs that would otherwise be deal-breakers.

But financial expert Suze Orman says that the tide may finally be turning with regard to the housing market. And those looking to sell a home in the near term may want to take action sooner rather than later. 

Sellers could lose their edge

Right now, sellers have an advantage over buyers in that they have a commodity in short supply. But in a recent episode of her podcast Women & Money, Suze Orman noted that buyer demand is slowly waning, most likely due to rising mortgage rates and recession fears. 

What's more, Orman says that in some areas, homes are sitting on the market longer than they have been in recent months. And that means those looking to sell a home may want to get a listing together sooner rather than later.

The reality is that while mortgages have become expensive over the past six months, borrowing rates for home loans could rise even more during the second half of 2022. That's because the Federal Reserve is moving forward with interest rate hikes in an effort to slow inflation. If borrowing gets more expensive across the board, consumers are apt to start spending less, and that could lead to more moderate prices.

Now if mortgage rates continue to rise, it could lead more buyers to pause their house hunting and pull out of the market. Once that happens, demand should shrink. But at that point, sellers won't have as much of an upper hand, and some may end up disappointed with the amount they can command for their homes.

That's why anyone who's serious about selling a home may not want to wait. Buyer demand is still reasonably strong right now in most markets, so it could be worth taking advantage of that.

Hire an agent or go it alone?

Those looking to sell a home may be wondering whether to tackle the process solo given high buyer demand or work with a real estate agent. And the answer is, it depends. 

Selling a home isn't easy. Neither is marketing one. But those with properties in very hot markets may fare pretty well selling on their own and saving themselves the real estate agent fees. 

But either way, listing a home is something today's sellers should not put off. Those who do will end up running a needless risk -- and potentially lose money because of it.