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Here’s Why Buying A New House At The End Of The Year Is A Good Thing
Buying a new house during the Fall or Winter could be much easier because of less competition, lower prices, and a smoother escrow process.
It’s no secret that the Summer is the most popular time of year to move to a new home. Moving during the Summer guarantees good weather and allows families time to settle into their new residence before it’s time for kids to return to school in the Fall. Frankly, it’s most convenient. However, the housing market doesn’t just cease to exist during the remainder of the year. In fact, there are many benefits to moving at the end of the year, too. Keep reading to learn more about all the potential benefits you can expect when you go house hunting in the Fall or Winter!
Prices Are Cheaper:
In general, Winter is the cheapest time of year to buy a new home, and Fall is the second cheapest time of year. To illustrate, data shows that buyers who close in Winter pay an average of 0.51% less than those who close during busier months. While that percentage may sound small, that percentage can actually equate to thousands of dollars. Once Summer ends, sellers are more motivated to sell their homes which means cash-strapped buyers on a budget can usually score a good deal.
Sellers Mean Business:
During the Fall and Winter, sellers are often extra motivated to sell their homes which automatically translates to an advantage for homebuyers. Many sellers temporarily take their homes off the market during the holidays because they assume no one will be looking to buy. If a seller does decide to list their home during the most festive time of the year, you know they are eager to sell as soon as possible. This is a good thing for buyers, as their offer may be accepted at a lower price and with better terms that benefit the buyer. In other words, negotiations may be easier and will be more likely to favor the buyer. Plus, you know that any buyer or seller who is willing to move during the hectic holiday season is serious about the deal.
Although there is usually less inventory at the end of the year, there are also significantly less people looking to buy new homes. During the Summer, you would be competing with other buyers who could be offering cash offers over asking price. However, those offers aren’t very common in the Winter. You’ll be much less likely to be outbid and sellers will be more likely to consider traditional methods of financing since there probably won’t be better offers on the table.
Escrow May Be Smoother:
During the Summer, mortgage brokers can get completely overwhelmed by the sheer volume of real estate deals being done. But when business is slower at the end of the year, the same backups don’t occur and your mortgage broker will be able to devote more attention to your deal. Therefore, you may be able to close on your new home more quickly and easily.
Once the deal has closed, you’ll then likely be able to pick any moving company you want. Like mortgage brokers, moving companies get slammed during the warmer months. But with the decrease in business, you’ll likely find lots of flexibility in scheduling your movers of choice and may even be able to negotiate better rates for their services.
You See Your House At Its Worst:
If you see your house at its worst and still love it, you should have no question in your mind that you’ve found the perfect property for you. Seeing your home during the Fall or Winter means you get a glimpse into what maintenance it requires to survive inclement weather, such as heavy rain or snow. During the Summer, you simply wouldn’t be able to know how cold the bedrooms get in a snowstorm or realize which drafty windows might need to be replaced. Seeing your home in bad weather will help you make an informed decision about whether you love your new residence for the good, the bad, and the freezing.
It’s The Best Time For You:
The real estate market is constantly changing. Don’t keep waiting for the stars to align, because there will always be good things and bad things to consider in any housing market. If this Fall or Winter is when you are ready to buy, don’t let the holidays or anything else stop you. Contrary to popular belief, the coldest time of the year is also one of the best times to make a deal!
Learn more tips and tricks for buying or selling homes at the Dabl Real Estate Hub!