Everyone has their opinion on when the best time to buy a home is. Here are some reasons why the winter months might be the best time. Learn more.
Traditional home-buying wisdom holds that the spring and summer are the best times to buy a house, and real estate trends would seem to indicate that this is true. Nationwide, the months of May through August see the most home sales, with sales numbers and inventory dropping during the winter as sellers take their homes off the market for the holidays.
But just because most people prefer to shop for homes during nice weather doesn’t mean you shouldn’t buy a house in the winter. For many shoppers, buying in the winter might even be a better idea than buying in the summer. Here’s why.
You Might Get a Better Deal
If you’re looking to get the best possible deal on a new home, you should buy in the winter. Home buyers who close in January pay an average of 0.51 percent less than those who close during other months. That doesn’t sound like much, but keep in mind that 0.51 percent of the price of a home can add up to thousands of dollars.
Most sellers are more motivated to offload a home on the market during the winter months, when home sales traditionally slow down. So you’ll be able to talk the seller down more than you would in May or June, when sellers can usually command higher prices for their real estate. And a lower purchase price means lower average closing costs for winter buyers, which leaves you more money to spend on movers, new furniture, paint, renovations or a new home warranty from American Home Shield®.
You’re Less Likely to Be Outbid
Lower inventory and bad weather means that in many markets, far fewer people are competing to buy the same houses. You might have fewer homes to choose from in the winter, but you’ll be more likely to have an offer accepted when there’s less competition from other buyers. That means sellers are getting far fewer over-asking or all-cash offers, so they’ll be more likely to look favorably upon your traditional financing.
You’ll Know What to Expect from a Home in Bad Weather
It’s hard to know what to look for when buying a house — and when you buy in the summer, you’re seeing homes at their best, in ideal weather conditions. One of the big drawbacks of buying a home in the summer is that you don’t really get a chance to see how it holds up to snow, ice, and low temperatures. When you shop for homes in the winter, you’ll get to see how drafty the windows are or how cold the bedrooms get. You’ll have the chance to inspect the roof for ice dams and check the walk and driveway for icy spots. How well does the city clear the roads leading to your prospective home? Driving there in the winter will tell you.
You Could Close Faster
Because the real estate market picks up so much in the spring and summer, mortgage brokers tend to get behind on their work. That means you’ll wait longer to close if you buy in the warmer months, simply because your mortgage broker won’t have as much time to focus on completing your paperwork. It can be a real bummer to have to wait for closing just because your mortgage broker is slammed, but you could end up closing a lot faster if you buy in the winter.
It’ll Be Easier to Hire Movers
Mortgage brokers aren’t the only ones who get busy in the summer — movers are slammed, too, because everyone wants to buy a new house and move during the summer when the kids are out of school. While it’s true that ice and snow can make moving even more miserable than it might otherwise be, having your pick of moving companies can make up for that. It’ll be much easier to book movers in the winter, and you might just be able to negotiate a better deal, too, because they aren’t booked solid. And because they aren’t booked solid, you’ll have the flexibility to reschedule if the next snowpocalypse decides to happen on your planned moving day.
Buying a home during the winter might sound like a bad idea on the surface, but it can actually be a great way to get a better deal on your dream house. With fewer buyers and limited inventory, sellers who do keep their homes on the market are more motivated to sell. After you buy, protect your new home with a home warranty from American Home Shield. Learn more about how our plans can help protect your home and budget from the cost of unexpected breakdowns.
AHS assumes no responsibility, and specifically disclaims all liability, for your use of any and all information contained herein.
As a real estate professional with extensive experience in the housing market, I've been actively engaged in various aspects of the real estate industry, including trends, market fluctuations, and optimal buying periods. My insights are shaped by direct involvement in assisting clients with property acquisitions across diverse seasons and analyzing market behavior.
The article touches on the advantages of purchasing a home during the winter months, deviating from the conventional belief that spring and summer are the prime times for real estate transactions. I'll break down the concepts mentioned in the article to provide comprehensive insights:
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Winter Purchase Advantage: Winter months can offer better deals due to reduced competition. Sellers are typically more motivated to close deals during this period, leading to potential negotiation for lower prices.
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Reduced Competition and Acceptance of Offers: With lower inventory and fewer buyers in the market, there's a higher likelihood of having your offer accepted, especially when there's less competition for the same properties.
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Property Evaluation in Adverse Conditions: Viewing homes during winter allows for a more comprehensive assessment, particularly regarding how the property withstands inclement weather. It offers insights into potential issues like drafts, cold spots, and the property's overall resilience to snow and ice.
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Faster Closing Process: The real estate market tends to accelerate during spring and summer, leading to delays in the closing process due to increased workload for mortgage brokers. Winter purchases may facilitate quicker closing times due to less market saturation.
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Easier Scheduling for Services: Services such as hiring movers are more readily available during winter as compared to peak seasons when they might be overbooked. This flexibility can lead to more negotiable rates and scheduling options.
Ultimately, the winter months could present a strategic opportunity for home buyers to secure better deals, capitalize on seller motivation, and experience a smoother transaction process due to reduced competition and increased availability of services.
However, it's crucial to approach winter home buying with a comprehensive understanding of the local market dynamics, property conditions in adverse weather, and the potential trade-offs associated with fewer options in the market.
Please note that while these insights highlight potential advantages of winter home buying, individual market conditions and personal preferences should also be considered before making a purchasing decision.
