As snow collects on the eaves of houses and the central furnaces fire to life in condo buildings, owners everywhere mull over the same question: Is now the right time to buy or sell?
Traditionally, buyers shied away from winter selling, citing a pervasive myth that homes sell slower – and for less money – than in spring and summer. There’s a grain of truth here; technically, homes sell for an average of about 5% more in spring. However, that figure is skewed. The increased spring competition often strands homes on the market, forces re-listings and prompts buyers to price their homes under market value to spur bidding (partially explaining that 5% bump, which is tacked onto the asking price).
On the other end of the transaction, some buyers also shy away from house-hunting in the winter. They don’t like the idea of trudging through snow to attend open houses. And they balk at the prospect of moving when it’s freezing cold outside.
These are fair concerns, to be sure. But they’re begging for a counterpoint. In this blog post, let’s explore the upsides of buying and selling in winter. Here’s some fodder for the “pros” section of your pros and cons list!
The Advantages of Buying in Winter
Buying a home in winter is a shrewd move. Because there’s less competition, you often have flexibility in negotiating the asking price. Depending on how perpetually hot the market is in your area, you might even strike a deal for a home well under its market value.
More than that, it’s just less of a headache buying without hordes of competition. You worry less about bidding wars and competitive subject removals – and more about the homes themselves. And because mortgage underwriters, brokers and other professionals see fewer applications cross their desks in winter, you might even get your mortgage approved quicker – a real weight off your shoulders!
Lastly, winter is often the “holiday bonus season” for workers. You can leverage that bonus as a last little addition to your nest egg, beefing up your down payment – and, by extension, widening your prospects.
The Advantages of Selling in Winter
Sellers may also benefit from the lack of peak-season competition. Remember, competition cuts both ways. Just as peak season experiences an influx of buyer demand, it also experiences an upsurge in seller supply. As mentioned in the intro, peak-season sellers may spend more days-on-market; they may need to re-list their home to garner attention; or they may even need to slash the price to attract buyers. As long as you find top real estate agents to list your home in the winter, you should be able to get a similar – or even higher – price for your property.
In winter, your property is competing with fewer comparable homes. Moreover, the sellers that are looking in the slow season are often highly motivated. They aren’t just jumping on the summer bandwagon, casually viewing homes and sneaking in lowball offers.
Lastly, as several real estate professionals are quick to point out, winter brings relocators. Conventionally, companies move their employees around in the 4th or 1st quarter, which can mean an influx of highly motivated prospects.
Provided you work with the best real estate agents in your area, buying in the winter has significant upsides. You can shop freely, sell confidently, and enjoy a relatively leisurely transaction process.