Key Takeaways

• Rising interest rates reduce buyer purchasing power, often slowing showings and extending time on market.
• Pricing must reflect current conditions, as recent comparable sales may not account for today’s higher rates.
• Longer decision timelines and tighter financing increase the risk of contract cancellations.
• Seller concessions, such as rate buydowns, can help keep qualified buyers engaged without cutting list price.
• Preparation with agents, lenders, and appraisers improves deal stability in rate-sensitive markets.

Danielle Jurinsky, an entrepreneur and real estate professional based in Aurora, Colorado, brings a combination of business leadership, public service, and practical housing market experience to her work with Homesmart Realty. As a commercial and residential real estate agent, Danielle Jurinsky helps clients navigate challenging market conditions, including rising interest rates and shifting buyer behavior.

Her background as a United States Air Force veteran and her experience owning and operating multiple restaurants and bars have shaped her disciplined, community-focused approach to problem-solving. In addition to her private-sector work, Ms. Jurinsky serves on the Aurora City Council and the Colorado Tavern League board, contributing to local policy discussions affecting homeowners and small businesses.

Drawing on her diverse expertise, she highlights key considerations for sellers who are preparing to list their homes in a rising-rate environment.

Selling a Home When Interest Rates Are Rising

Sellers can feel the effects of higher borrowing costs even before their home is officially on the market. Showing volume can dip, and buyers compare more carefully before scheduling tours. Activity may still be steady, but it takes longer for a listing to convert into a serious offer.

Rising rates also reduce the monthly payment buyers can support. Even small increases can shrink the loan size many buyers qualify for, forcing them to scale back budgets or leave certain price ranges entirely. This doesn’t always appear in headline sales data, but it shapes who can stay active in higher-priced segments.

Pricing strategy needs early review because comparable sales can lag behind current conditions. Many recent closings reflect rate quotes from weeks or months earlier. Sellers who update pricing to match current market conditions, especially local inventory and concession trends, meet today’s buyers where they are.

Listings also remain active longer than they once did. In low-rate markets, sellers typically expect multiple offers within days. Today, qualified buyers take more time, gather second lender quotes, or wait to confirm their rate lock. Sellers accustomed to faster past markets may interpret this as weak demand, even when buyers remain interested.

Some accepted offers fall apart before closing. Deals can fall through late as financing tightens or buyers reassess costs, and recent data show elevated contract cancellations in some markets. Sellers may see financing contingencies reopen, or buyers request adjusted terms to preserve eligibility. Because of this, buyers increasingly look for ways to manage borrowing costs during negotiation.

One common tool is a rate buydown, where the seller contributes to the buyer’s closing costs so the lender can offer a temporarily lower rate. These concessions help buyers meet lender thresholds without forcing the seller to adjust the home’s price. When used selectively, they keep qualified buyers engaged and reduce the odds of a deal collapsing late.

Cash buyers gain leverage in this environment because they bypass lender approvals entirely. Their offers include faster closings and fewer conditions. Sellers may weigh a higher financed offer against a cleaner cash offer and choose based on speed and certainty rather than headline price alone.

Appraisals reflect recent comparable sales. In slower markets where concessions are common and some listings linger, the appraised value may differ from a seller’s expectations. Sellers can prepare by reviewing comps with an agent and noting when each closed.

To reduce risk, some sellers adjust the list price or offer targeted concessions as conditions tighten. These moves reflect local inventory conditions, lender thresholds, or recent appraisal gaps. By addressing obstacles early, sellers reduce the chances of renegotiation after inspection or financing review. When buyer qualifications are tight, even modest adjustments can improve deal stability without sacrificing core pricing goals.

When rates move quickly, sellers who act on current market evidence, such as local inventory and recent concessions, usually see stronger results than those who rely solely on past cycles. Focusing on clear, verifiable terms and keeping documents organized helps them keep financing stable through closing. This practical approach often matters more than waiting for a perfect price.

Some sellers are also rethinking how they plan for negotiation, not just listing. In rate-sensitive markets, early coordination with agents, lenders, and appraisers can surface risks that sellers once handled reactively. By identifying financing constraints or appraisal gaps before going live, sellers turn preparation into a buffer against late-stage disruptions. This shift reflects a broader change; transaction timing now begins before the listing hits the market.

FAQs

How do rising interest rates affect home buyers?

Higher rates increase monthly payments, reducing the loan amounts buyers qualify for and shrinking active buyer pools.

Why do homes take longer to sell when rates rise?

Buyers take more time to confirm financing, compare lender options, and reassess affordability before making offers.

What pricing mistakes should sellers avoid in a rising-rate market?

Relying solely on older comparable sales can lead to overpricing, as those deals often reflect lower interest rates.

What is a rate buydown, and why do sellers offer it?

A rate buydown allows sellers to contribute to closing costs so buyers can secure a temporarily lower interest rate.

Why are cash offers more attractive when interest rates are high?

Cash buyers avoid financing risk, close faster, and reduce the chance of deals falling apart due to loan issues.

About Danielle Jurinsky

Danielle Jurinsky is an Aurora, Colorado, entrepreneur, real estate agent, and city council member. She owns and operates multiple restaurants and bars under 5280 Saloons and specializes in commercial and residential property sales with Homesmart Realty. A U.S. Air Force veteran, she actively supports public safety initiatives and local small businesses.

Her leadership has been recognized by Westword Magazine’s “People to Watch in 2025” and Intermountain Jewish News’ Top 40 Under 40.