What Real Estate Experts Say About Buying a Home in Colder Months
Surprisingly, the winter months really can be a great time to purchase a home. Housing prices tend to lower, sellers can be more motivated and competition isn’t quite as fierce. The combination of fewer buyers and slow business also means lenders and real estate agents will fight a little harder for your business. Buying a home in the winter months can certainly give you a unique vantage point.
In our previous article, we mentioned that the colder months are actually a gold mine for home buyers. In this issue, we’re looking at more reasons why winter is the best time to buy a home according to the real estate experts and professionals across the world.
You might also want to read: Top 5 Negotiating Tips For Buying a Home
Here’s what the experts have to say:
Savvy home buyers should take advantage of this time if they’re serious about buying. Mortgage rates are low.There isn’t a lot of competition. People know they’re going to be busy or traveling during the holidays, so most deals have been wrapped up or people have put off looking until after the New Year. There are still homes on the market, but not as many people gunning for them.
Michael Corbett, Trulia bestselling author at Trulia
Winter is a buyer’s market. With less competition and fewer dedicated house-hunters, the colder months present an opportunity to snag a good deal. Not only are asking prices typically lower, but you’ll face fewer buyers offering competing bids. Even a small difference in price can mean significant savings in the long run. For example, let’s say you’re buying a house with 6 percent closing cost and a 30-year mortgage with a 3.25 percent interest rate. If your house costs $500,000 as opposed to $550,000, the total cost of your mortgage will fall by over $80,000. You’ll feel the benefits of buying low for decades to come.
AnishaSekar, Financial Advisor for NerdWallet
Buying during the winter may be a little stressful, but the payoff is more than worth it. The real estate market moves in cycles – up and down- both on a large scale (spanning decades, like the recent collapse and current climb) but also in relation to the time of year. Because real estate is a “supply and demand” industry, good deals can be found when no one else is looking. Therefore, some of the best deals happen during the coldest months of the winter.
Brandon Turner, Senior Editor of BiggerPockets
Timing is Key
Timing is important because there are certain times of the year when you’ll pay more for a home and other times when it’s more advantageous to buy. Home sales tend to peak in the summer months (June and July) and prices usually peak just before then (May). Purchasing a home during the colder winter months will usually get you a better price, sales tend to slow down making sellers more willing to negotiate.
Andrew Schrage, Founder of MoneyCrashers
Opportunistic time for buyers
It is a very opportunistic time for buyers to consider making a home purchase, rather than waiting for the spring market.
Michael Mahon, Executive Vice President/Broker at HER Realtors in Ohio
Contingencies aren’t a deal-breaker
Because listings tend to last longer, buyers also aren’t as likely to feel pressured into waiving safety nets such as a home inspection. That’s significant the fact that you can have a little bit more of a traditional buying experience.
Robert Jenets, president of Stuart & Maury Realtors
If you are a serious home buyer, then you don’t want to miss the opportunity to own a home at the start of the new year! Take these professional views into consideration and continue your home search regardless of the colder weather to find a home you love at the price you want!
Buying a home in the colder months is a smart move and realtors loves this time of year! We get a lot of business done because the people who are out looking are serious. We at DSEAYCOM have more time to focus on you, as opposed to other times of the year when we might be juggling more clients. This is the best time to buy a house so call us now and start 2018 off on the right foot!
At DSEAYCOM, we’re happy to answer any questions you have about buying and selling in the Alabama area. Call us now or feel free to share our contact information with someone you know that needs expert help buying or selling their home.
Receive West-Central & Birmingham Alabama real estate news and trends straight to your inbox. Stay connected to the community and be the first to know when new homes come on the market. Sign up here!