Why you should buy a home now
Most realtors are happy to take your business any day of the week. The truth is, however, it can be more advantageous to be a buyer or seller at different times throughout the year. The climate of the real estate market ebbs and flows with the seasons themselves. Factor in events like holidays and the school calendar and the nature of the market is more predictable than one might think. It’s about this time each year that clients begin contacting me to discuss their intentions of a Spring/Summer move. Their motives are good - they want to initiate the process of buying or selling by getting their finances in order, contacting their lender, tackling the pre-approval process and even doing a preliminary market search. What they often don’t factor in is the large pool of prospective buyers with this same timeline in mind.
As the seasons shift and we settle in under a blanket of darkness and cold, our behaviors change. Those once passionate house hunters will seek refuge, their hibernation instincts taking precedent. Most will opt to postpone their search until Mother Nature cooperates once again. Meanwhile, opportunity knocks.
This shifting of priorities leaves a fragment in the marketplace where savvy buyers can gain some serious traction. Sellers still holding on to faith that their property will sell are often seeking heightened measures to get their homes under contract. In the meantime, the majority of buyers have shifted their focus to holiday preparations thinning the competition to a fraction of what it will be come the first signs of Spring.
The long and short of it is if you are considering a move in the Spring or Summer, why not consider it now? Below are 5 advantages you gain as a less conventional winter buyer.
The Spring market is notorious for being hot. Here in Minneapolis, the trend of low inventory has continued putting pressure on buyers to bring their highest and best terms to the table. When multiple buyers are involved on a single property, buyers are often forced to compromise to gain the attention of the seller. This can mean shorter inspection periods, full price offers or even coming in over asking. On the flip side, properties for sale during the winter months often sit on the market for longer periods of time. As the days on market tick on, sellers desire to get their property under contract grows. They are often more willing to entertain lower offers and play nice on inspection requests.
Often when homeowners are selling in the dead of winter, there is a greater cause at hand. Perhaps a seller has received a job elsewhere dictating a last-minute move or a change in familial status has taken place. These scenarios where sellers possess ulterior motives can leave room for buyers to capitalize. A seller meeting a particular timeline may trump holding the property longer than desired.
More negotiable rates
The purchase of a new home often comes with a laundry list of professional services rendered. Movers in particular can be back logged for much of the summer. Not only does demand for moving services decrease in the winter, but companies are often willing to negotiate rates and deliver on deadlines to gain your business.
If you have attempted any sort of home renovation project in the past two years, you know that the demand on contractors has grown exponentially. During the summer months, it can take weeks - even months for availability of the trades to free up. As construction, material and labor demands rise, so too do the prices that accompany them. When purchasing a home you plan to update or customize, winter is an opportune time to gain access to your local pros.
Enjoy your summer!
A move can eat up a summer in a single bite. Consider the home search itself, followed by a 40-day closing while you pack and prepare to leave your previous home. The 30 days that follow will be spent applying some formula of cleaning, updating and unpacking and before you know it, a glorious Minnesota summer has passed you by. Why not put all of that behind you and get settled before the sunshine starts spilling out over our spectacular city lakes. The days of warmer temps are far too short in Minneapolis to sacrifice a single one.
If you are considering a move, contact me to talk more about the advantages you can gain as a buyer in today's market. I'd love to hear from you by email at email@example.com or by phone at (612) 723-7636.
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Everything you need to know to get started on the search for your dream home.