While December is typically seen in real estate as the worst month to buy a home, there are several reasons why it can be beneficial to purchase a new abode while most people are gearing up for winter holidays.
“It’s a time of the year when many buyers go into hibernation,” Daren Blomquist, senior vice president for ATTOM Data Solutions told The Mortgage Reports of a brief from the national property database. “This provides an advantage to buyers who remain active.”
Among those advantages are more negotiating power for homebuyers in the winter months, according to QuickenLoans.
Cost-saving opportunities are available for astute purchasers since there are fewer homes on the market at this time — that means less competition. With fewer people vying for your dream home, there’s potential for sellers to offer more to you to land a sale, which could result in you buying a home below the asking price.
People who list their homes in the winter are also more motivated to sell since most people won’t put their homes on the market during this season unless they have to for a job relocation, for example. This scenario is particularly the case in places whether weather can fluctuate drastically from summer to winter. So Georgia, with its history of biting winters that have sometimes led to snow and ice, is one of them.
“They might also be more willing to take a lower offer seriously, as a buyer who is willing to brave the weather elements like rain and snow is committed to purchasing a home,” small business owner website Fit Small Business reported.
In November, December, Janurary and February, the number of sales accounts for an average of 68% of the total activity in the peak season, according to an analysis by the National Association of Realtors.
Still, advantages abound for people seeking homes in the colder months.
With December typically being a meager month fror mortgage brokers, the advantage is in the homebuyers’ hands.
They’ll have the chance to build the best mortgage possible since fewer real estate transactions are occurring, according to Trulia. Loan officers could be prompted to offer special incentives and perhaps waive or reduce origination fees. Fewer loans also mean underwriting time will be swift, too.
Favor is also on the side of the buyer who decides to build their own home.
Trulia urges them to ask about holiday incentives, which builders will offer to close the year on a high note. Fewer homes are sold in new-construction homes throughout the month, much as is the case for selling an existing property. With the final days of the year being especially important for sales, this could be the best time to get custom cabinetry, updated finishes or new hardwood floors.
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