6 Reasons Why You Should Buy a Home During Winter
1. Less Buyers To Compete With
Most people want to move when it is warmer out which results in less buyers looking for homes during the winter months. During the summer homes most often move quicker, even on the same day it is listed.
2. Lower Prices and Motivated Sellers
Often times prices can be lower in the winter as sellers can be motivated to sell depending on their situations. When sellers need to move quickly they can be more willing to negotiate on price, concessions, closing dates and other terms of the sale. There is also normally fewer buyers and smaller chances of getting into a bidding war over price. This can help you secure the home for a better deal.
3. Your Agent and Lender Have More Time To Help
As winter months are normally slower in the real estate industry your real estate agent is most likely going to have more time to devote to helping you find and purchase a home since they are working with fewer clients at the time. The same can go for your lender, which in return can possibly help you close on the home faster since the underwriters approving your mortgage are less busy too.
4. Tax Benefits for All Parties
There are often many tax advantages to both the seller and buyer in a transaction. If a seller is eager to take advantage of those tax benefits they may be more willing to negotiate with you. Buyers also have many tax advantages that they can use as deductions come the following tax season. They include but are not limited to: mortgage interest, real estate taxes, points (percentage of loan), and energy credits for installing energy efficient upgrades to your home.
5. Able to View Home Under Harsh Conditions
Viewing homes in the winter months also allows you to view the home under extreme circumstances such as heavy snow on the roof, large wind speeds and melting snow. These conditions can cause things such as leaky roofs and basements that you might not have seen during the spring or summer months. It also allows you to view the neighborhood to determine if your vehicle can make it in or out when the conditions get rough.
6. Before Mortgage Rates (Potentially) Increase
Mortgage rates can change any time throughout the year but often times you will see increases for the following year. By getting in before the new year you can potentially miss the rate increase. Rates are still historically low and it’s always best to consult with a couple of lenders before beginning your home search to make sure you are financially capable of purchasing a home at that time.
Downsides to Buying in Winter
Although there are many benefits to purchasing a home during the winter there are also some downsides:
- There is usually less inventory to view making your selection limited, especially if you are looking for something specific in a home.
- The harder weather conditions can make it difficult to get out and view homes depending on where your location is and it also limits when you can view homes as it gets darker earlier.
- You also might not be able to view the yard and/or roof if they are covered in snow.
- Searching for homes around the holidays can make it difficult to view homes if you are traveling or if sellers limit showing times due to holiday events.
If you think the time is right for you to purchase a home, feel free to contact The Jacobsen Group at [email protected]