The housing market can seem fickle to those on the outside. However, real estate professionals understand just how the market ebbs and flows. People looking to purchase homes can learn a lot from real estate professionals on the best time to buy a home to get the best value. Here’s a little advice from First Fidelis LLC.
When Can Buyers Get the Best Deal on Homes?
Summer is the peak time to buy a home. This means that the market is more competitive, and it could be a little more challenging for buyers to get a good deal on a home. With more people looking to buy homes during this time, buyers might have to outbid other potential buyers to get the house that they desire. However, waiting a few weeks could lead to big savings.
A little secret in the real estate industry is that home prices tend to dip during the fall and winter months. Part of the reason for this pricing dip is that there is less competition for homes and more inventory to choose from. This creates a buyers’ market, which is exactly what a home buyer wants.
According to a report by Realtor.com, the first week of fall tends to be the most prime time to purchase a home. The real estate market is coming off of its summer high, and competition is dropping fiercely. The report shows that U.S. buyers face 26 percent less competition during the first week of fall; plus, 6.1 percent more homes hit the market during this same week than the average week. Additionally, nearly six percent of the homes on the market will drop in price.
As the season continues into winter, you will see more and more price reductions on the houses that are on the market. This is generally the off-season for the real estate market. Since fewer homes are purchased in the winter months, sellers are often more keen to reduce prices to make a sale.
Additionally, many sellers will wait until the late spring or early summer to list their homes in an attempt to generate more interest. So, you might notice fewer homes on the market at this time. However, many of the homes that are on the market in the winter months are listed by sellers who want or need to sell quickly, so you might be able to haggle more successfully.
Another key time to buy a home is August. While you might not be able to get the best possible deal, August is a time when there are still a lot of homes on the market, and prices are starting to drop. This is the time when leftover homes that didn’t get sold during the real estate season are given reduced prices in order to sell them before the season is over.
Tips for Buying a House in the Off-Season
Buying a house can still be stressful and difficult. First Fidelis has a few tips for buying a home during the off-season.
Be Confident in Your Negotiations
With fewer buyers house shopping, buyers have a leg-up. This is the season for negotiations. When purchasing a house in this type of market, you are more likely to get a good deal. Sellers are more likely to make deals that will make them less money than let their house sit on the market for a few months. If you happen to find a seller that has an urgent need to sell, you could be able to get a home for thousands of dollars below asking price. In the off-season, the buyer has the upper hand, so negotiate with confidence.
Go to Showings
During the off-season, you might be the only person at a showing. Go to showings on the houses that you are interested in, and you might be able to get an early bid on the house that gets accepted before any other offers come in. Not everyone is going to trudge through the snow and ice to look at a home they are interested in, so you need to be willing to get out in the weather.
Move Through the Process Quickly
Appraisals and inspections can take a long time. Agree to work through these processes as quickly as possible. Not only will this help you move in more quickly, but it will also help the seller get paid faster, which is a big benefit for them.
Get Pre-Approved for a Loan
One way to expedite the home buying process is to get pre-approved for a mortgage loan. You can speak to a mortgage broker before you start looking at homes to make sure you have the necessary funds to secure a property before you put down an offer.
As a buyer, the off-season is a great time to delve into the real estate market. To get help securing a loan, contact First Fidelis LLC today at 913-205-9978.