After years of historically low mortgage rates, home buyers are seeing the tide turn and wondering how much higher rates will inch up. What advice should agents give them?

1. Plan ahead.

In many markets, higher rates have arrived in tandem with inventory shortages, forcing buyers to think harder about ways to improve their negotiating position. The best first step? Encourage buyers to shop for a lender and secure pre-approval on a mortgage before shopping for homes.

Of course, this will be more difficult if a buyer has any blemishes on their credit history. Even though higher interest rates could dampen refinance activity and free up more money for new mortgages, lending standards are expected to remain tight. Help buyers resolve any credit issues early to avoid future disappointments.

2. Submit a winning offer.

In a rising rate environment, time means dollars. Encourage buyers to consider the potential cost of having their offer rejected and needing more time to find and submit a winning bid on another property.

Viewed this way, a buyer may prefer to adjust their negotiating position and make their offer more attractive. For example, consider telling a seller that you'll accept a higher mortgage rate if rates change before you're able to lock. Sending a signal that you won't back out of a contract could tip the scales in your favor—and may ultimately cost much less than playing hardball while rates creep even higher.