Spring is the busiest season in real estate and many buyers think that it’s in their best interest to wait for the market to heat up before heading out to view homes. Although the warmer months do generally see more action in the real estate market, there are many great advantages to buying in the off season that could end up leading you to your dream home and saving you a lot of money in the process.
Winter is Buyer’s Market
Nobody wants to buy or sell in the winter, so if a house is on the market during this time, there are pressing reasons for the seller to sell it. There are not many houses that come on the market relative to a number of buyers still looking, so winter tends to be a buyer’s market which means more negotiation power and less purchase price.
Fewer Buyers to Compete With
If you have ever looked for a house in the spring, you know the number of people looking to buy in the spring. Houses with offers date can get anywhere from 5 to 15 offers and bidding wars can push house prices $30-40K over asking. In the winter, you are most likely the only offer and both parties have equal leverage rather than seller calling all the shots. It’s simple economics – the low demand will work in your favor. So for the investors and home buyers looking to find a good deal in the housing market, the winter can be a prime time.
Lower Inventory But Less Competition
In most markets, winter usually means a lower inventory with less houses on the market. While this is often the case, it is still possible to find the right space and with fewer people looking, you’ll have less competition.
Save Time
As wonderful as a large selection can be, it is extremely tiring to go house hunting when there are literally hundreds of homes that fit your criteria. Since there are generally less homes for sale in the winter, there are also fewer homes that you need to look at, saving you both time and energy.
Prices Are Lower
When you have fewer buyers in the market, supply exceeds demand. This usually results in prices being lower than during the hot or peak season. Generally, we have seen house prices $5 – 15K lower than spring/summer prices and the best part about buying in the winter is – no offers date and bidding wars.
Sellers are Motivated
All the low activity in the winter will result in sellers being far more motivated to sell. From experience, we know that the slow winter months are when sellers are more willing to negotiate, whether it is on selling price, closing costs, closing date or even terms of the sale. And these are all the very reasons that we recommend that our clients delay listing their homes till at least the spring. The winter is not a great time for sellers, in general.
House Issues
Viewing and buying homes in the winter allows you to see first-hand how well the home functions in the colder months. All of the major systems in a home are put to the test in the winter – plumbing, heating, roof, gutters – so it is a great time to make sure everything is working well. Your home inspector will be able to check how well the furnace heats the home; whether it is heating the home evenly. Also, he or she will be able to determine if the windows are letting in drafts. Checking out the way a home functions in the winter could save you a lot of money if you are able to spot serious issues prior to purchase.
If you are ready to buy a home in the winter, give me a call and let’s get you started with pre-approval and move you into your dream home before the start of summer. Don’t waste your summer house hunting! There are better things to do.
