It’s cold outside. The snow is past your kneecaps and the wind chill is -5 but you decided now is the time. You saved and you have checked the market and you are ready to take the plunge. But it’s December and you live in a cold climate area. The thought of wearing your winter jacket and UGGS trekking around looking at houses just doesn’t seem appealing. You start thinking springtime is right around the corner and maybe that will be a better time to make a purchase.
But not so fast. Although spring and summer are right around corner and the prime season for housing inventory, they may not be the best season to buy a home. Although there are more homes on the market there is also more competition between buyers and sellers are less willing to budge on their asking price.
If you are looking for a deal, buying a home in the winter could be the way to go. Often when owners put their house on the market during the off-season, they may want to sell quickly (possibly for relocation for a job) that requires them to sell as soon as possible. A sense of urgency coupled with a small group of buyers could mean a savings for you.
Typically, the best deals can be negotiated between Thanksgiving and Christmas. It may not ideal but if you can afford to be flexible and a little less picky purchasing a home during the holidays may be the way to go.
Reasons why buying a home during the holidays might be the time to buy:
- Less competition: If you can wait for the off-peak months you will have less competition meaning there will not be as many offers on the market.
- Sellers are more motivated: If a seller has their house on the market during the off season, chances are the are very motivated to sell. If a seller needs to et their home sold quickly buyers could be in a position to get a great deal.
- If you don’t have children or you don’t mind moving your children during the school year: Buyers without school age children can take advantage of the off-peak months to take advantage of a better deal.
- Easier to negotiate: Less competition means more negotiation power for buyers.
- Live in a cold season: Real estate is primarily seasonal especially in colder climates you may get an amazing deal of your purchase during the holiday season in a city like Detroit when it is likely to be cold and snowy.
- Less picky or starter home: During the winter months there is less inventory to choose from so, the buyer may have less choice and therefore may offer less since they are compromising.
- Bad weather is your best friend: This is the perfect time to judge the quality of the house. Its very easy to say how great and weatherproof the home is and how wonderful the insulation. But during the winter months the proof is in the pudding. Cold and snow exposes a houses weaknesses. Any crack, sliver or flooding will be more obvious.
- People are convinced by emotion: Just imagine driving through sleet and snow to visit a house on December 24th. You almost slip on ice walking from your car to the door. But when you enter your potential home you are immediately feel the warmth hit your freezing face and it’s decorated in your favorite holiday colors not to mention the sweet aroma of holiday cheer. Chances are you will be affected on some emotional level.
The bottom line is if you find a home that meets some of your must-haves especially when inventory is minimal, don’t let the holidays deter you from making an offer.
“Coming home is one of the most beautiful things”
Andre Rieu
By: Anthony O. Kellum
Anthony O. Kellum, Speaker, Author and TV Host NMLS # 1267030 President of Kellum Mortgage, LLC Powered by Local Lending Group NMLS # 1567678. Connect with me on Facebook at: www.facebook.com/propertyispower. O: 248-599-1624 E: anthony@kellummortgage.com