WHY NOW IS THE PERFECT TIME TO SELL YOUR HOME

22/10/2024

If you're considering selling a home in Switzerland, the time is ideal.

Following the recent reduction of the Swiss National Bank's (SNB) benchmark rate to 1.00%, long-term mortgages have become much more affordable: the average rate for a 10-year mortgage has dropped to 1.81%, while the 5-year rate now stands at 1.68%.

The drop in rates represents an opportunity for sellers, as the greater accessibility of credit is encouraging many buyers to act now. With more potential buyers in the market, competition among them increases, creating ideal conditions to obtain a good price for your property.

Selling today allows you to capitalize on optimal market conditions, leveraging a financial environment that benefits both buyers and sellers.

Let’s take a closer look at why.

The Reduction in Mortgage Rates: Why It Matters to You as a Seller

The mortgage rate is the interest rate applied to a mortgage loan, which is the financing provided by a financial institution for the purchase of a property.

It represents the cost the borrower must pay to the bank for the loan. It can be fixed or variable and directly affects the amount of the monthly payments to be repaid.

In Switzerland, mortgage rates are primarily influenced by the monetary policy of the Swiss National Bank (SNB) and global economic conditions. Long-term mortgage rates, such as those for 10 years, are often linked to the movements of the SNB's benchmark interest rates.

As we have seen, following the recent decision by the Swiss National Bank (SNB) to lower the benchmark rate from 1.25% to 1.00%, long-term mortgage rates have experienced a significant decline.

But why is this so important for you, as a homeowner looking to sell?

The rate variations, correlated with the macroeconomic context, have improved the conditions for accessing credit, incentivizing demand for mortgage loans from buyers. With reduced financing costs, buyers can benefit from greater purchasing power, potentially leading to an increase in the demand for properties.

In this scenario, selling a property now could allow you to take full advantage of this favorable climate, characterized by greater accessibility to mortgages and potentially increased competition among buyers.

Is Now the Right Time to Sell Your Home in Switzerland?

Find out how much your property is worth on the market with a free valuation in just 2 minutes!

In Summary: Why Now Is the Right Time to Sell

• Increase in Demand: With more affordable mortgages, many buyers who were undecided until recently may decide to take the plunge and buy a home. The increased accessibility of mortgages makes buying less burdensome, expanding the pool of potential buyers interested in your property.

• Greater Competition Among Buyers: With the rise in demand, more people may be interested in your property. This could lead to multiple offers, allowing you to achieve a higher sale price compared to a period with lower demand.

• Stable Rates: Despite the drop in rates, it's important to note that the real estate market can fluctuate over time. Selling now means taking advantage of favorable conditions without risking a possible future rate increase or a drop in demand.

How to Prepare Your Home for Sale

Once you've decided to sell your home, there are some key steps you can follow to ensure you get the best value:

• Professional Valuation: First, make sure to get an accurate appraisal of your home's value. A real estate agency can help you set a competitive and realistic price.

• Property Preparation: Presenting your home in the best possible way is crucial to attracting potential buyers. Consider making small maintenance improvements, aesthetic upgrades, or even home staging to make the property more appealing.

• Effective Promotion: Ensure that your home is visible to as many potential buyers as possible. This includes listing the property on popular real estate portals, promoting it through real estate marketing, and using high-quality photographs.

Conclusions

The drop in mortgage rates represents a window of opportunity for both those looking to buy and those looking to sell a property. If you’re considering selling your home in Switzerland, now is the perfect time to do so. The growing demand and favorable market conditions put you in a strong position. Properly preparing your property and taking advantage of this period could lead to the best possible outcome.

Are you thinking of selling your house with an agency or are you simply curious to know how much your property is worth on the market? Contact us for a free consultation, by carrying out a quick evaluation in less than 3 minutes you will obtain the real value of your home on the Swiss real estate market.