8 SURPRISING REASONS TO HOUSE HUNT IN FALL & WINTER

Fall or winter are not the seasons that one thinks about when considering buying or selling a home. Spring is traditionally the winner. However, you should know that there are buyers out there in autumn and/or winter, and this could be a great finish to your year if you look for the opportunities. Contrary to what a lot of agents believe, home sales happen all year and there are seasonal trends in the marketplace. The deals that you find when the weather becomes cooler and the leaves are crunching underneath your feet have less to do with the price of the property and more to do with the lack of competition.

Every realtor knows that there are seasons in real estate when the market is hotter in some months and cooler in others. That does not mean that fall and winter are bad months to sell

“Every realtor knows that there are seasons in real estate when the market is hotter in some months and cooler in others.”

and/or buy properties. On the contrary, real estate seasonality normally is in favor of those clients who are in a position to buy when the weather changes and begins to cool off. Now don’t get me wrong, there are always exceptions to the rules that will cause even the most seasoned agent to scratch their head in disbelief. But for the most part, the fall is most definitely in favor of the buyers. Please note however that typically the "Buyers” attention moves to the holidays in mid- November, so it’s best to move quickly and work with your perspective clients on their forever purchase as fast as possible.

As I stated previously, fall has many benefits for home buyers, including year-end tax breaks, advantageous weather for moving and a plethora of homes on the market. While most homes look nice during the spring/summer, homes also look great when surrounded by the colors & smells of fall. The summer heat is traditionally too hot for buyers, and once the harsh winter arrives, with shorter daylight hours and extreme cold weather, folks just want to stay indoors.

With the holiday season that fall/winter brings, buyers and sellers tend to be more relaxed which creates more pleasant transaction on all ends.

Furthermore, the challenge of multiple offers and inventory issues fade away as the smell of burning leaves and crisp cool mornings become the norm. This is why fall and winter provide your clients with the greatest opportunity to find and purchase their new forever home or investment property.

Also be mindful that job changes can put some people in the position where they have to move in fall, whether or not by choice. And people who need or want to move, want to be settled in before the holidays arrive.

Savvy buyers/sellers want to take advantage of tax benefits that home ownership can provide to them before the year ends as well as property taxes which are also deductible from gross income for tax purposes.

Even though the yards do not look as pretty as they do in the summer and the curb appeal is covered in leaves blown by the cool fall breezes, here are 8 surprising reasons to house hunt in fall/winter months.

8 Reasons Revealed

1 - Timing is everything

Most people that want to purchase a home have probably already done so by the time September comes around. And as you know, the laws of supply and demand dictate that when the housing demand decreases it will almost always result in a lower price point. When this happens buyers tend stop competing with one another and homeowners actually start competing for the attention of prospective owners. The end result is that home prices tend to drop the farther they are removed from the summer months. Good news for buyers, bad news for sellers.

2 - Less Competition

When the weather is beautiful and summer fun is in full effect, perspective buyers are out house hunting and buying. However with that many people out looking at properties, you quickly go into an inventory issue where multiple offers are common place. Once the cooler months of fall come, or the snowy months of winter arrive, the summer frenzy dies down substantially. This does not mean that the real estate market goes on sabbatical.

Unlike the bear who hibernates for the winter, the intent buyer can benefit

nicely for their fall/winter house hunting safari.

With the decrease in competition, the sellers can’t help but shave a couple of dollars off their asking price to ensure a timely transaction. In fact, it’s at this time of the year buyers are coveted by sellers.

3 - Lower Asking Price

When sellers still have their house or available properties on the market as we go into winter, they know that there will be fewer buyers on the market and supply might exceed demand. This type of perfect storm normally results in the prices being lowered or more concessions from the buyer being approved to achieve the sellers goal of moving the property. This is where the patient buyer wins big by becoming a fall/winter house hunter.

4 - Sellers are motivated

Low activity in the fall/winter will always play into the buyers hand significantly motivating the seller. Seasoned agents know that during the fall/winter months, sellers are more willing to negotiate on price, closing cost/ date, any unique terms of the sale or items included in the sale. This is why a lot of agents ask their perspective clients to hold of on listing during this time of the year and wait until spring when the timing is more favorable to the seller. Unfortunately, unique situations and other life circumstances can sometimes cause the seller to list when the buyer has the upper hand.

Note: If a seller lists during this time of year it could be from a new job offer, financial issue, divorce or something else that is causing the sale.

It can work in the buyers favor but be mindful when making an offer to the seller.

5 - Sellers are worn-out

Every real estate agent has had that client who believes their property is worth more than what the comps/market can support. So after many months of no action or action with offers the seller is unwilling to accept, sellers are often ready to make a deal in the fall/winter months.

The sellers eagerness to make as much as they could, ignoring the advice of their professional realtor, has put them into a situation where they are more likely to accept a lower offer rather than sit on the property another 6 months.

6 - Clients feel they are the center of attention

Because spring and summer are ideal times to buy a home, real estate agents are usually busier then. And that could means one of your clients might not always receive the attention they are wanting. It is human nature to gravitate towards the new shiny thing or the client that is pre approved and does not take a lot of work to get them to make a decision on a property. With the traditional low activity during the winter months you should be able to provide your client the undivided attention he or she is hoping for. These lean months of low sales volume should be the fuel you need as an agent to try just a little bit harder to negotiate the sale. So what are you waiting for? Brave the cold, pull on a winter coat, and get out there and make some winter commission.

7 - Likelihood of multiple offers decreases

Purchasing real estate in the fall/winter is an amazing time because it is typically considered to be a buyers market. Since the weather does not say “come out and house hunt”, there are a fewer number of buyers out searching. With the decrease in the number of potential buyers competing for the same properties, the possibility of sellers having multiple offers to choose from on a single property are greatly reduced. This ideal situation gives the buyer the upper hand over the sellers when negotiations begin. This creates an opportunity for cash heavy investors to go after that property they have been carefully watching and unable to secure due to the time of year.

8 - You may not have to negotiate as much.

Traditionally no one wants to go through long, drawn out negotiations. The stress of buying a home and then having to haggle back and forth when you just want to get it over with turns any sweet deal sour quickly. One of the beautiful things about purchasing/ selling a home in winter is that everyone is already aware that the season requires compromises. When the home inspector discovers an issue during the home inspection, the seller may be willing to negotiate repairs or additional money off the house with less effort than if it were during the peak season. You might also be able to get concessions that otherwise would be less likely in a more competitive seller’s season. What are you waiting for, make the offer!

BONUS MATERIAL

What are the downsides to buying a home in the winter? Below are some things that could give you pause for purchasing a home in the winter.

• Possible fewer homes for sale because many home sellers will wait until Spring.

• The cold and potentially snowy/icy conditions make it a challenge to look at homes.

• You may not be able to see the yard all that well if there is a lot of snow on the ground or you may not see the lack of curb appeal on some homes.

• You will start paying for utilities at a time that where they are much more expensive.

• Days are also shorter with less daylight available for looking at homes.