Home Buying in the Winter Can Be Productive

The best time to buy a home may be the winter. That tends to defy conventional wisdom, which often has people buying in the summertime. True, in summer, there are far more houses for sale. The reason that houses tend to sell better in the summer is that is when most people want to move. Anyone with children will not want to disrupt their school schedule, so buyers and seller often put off buying and selling until warm weather runs around.

That’s fine, if that schedule suits you. But if you have no problem moving at other times of the year, you may do better to buy in the winter, instead. Sure, there are more properties to choose from during the summer, but that time of year is a seller’s market. Buyers who want to move in the summer know they must make a purchase soon, and that puts the ball in the seller’s court. If you buy in the winter, it’s a complete turnaround.

In the wintertime, there are fewer houses for sale, but there are also far fewer buyers. That puts the buyer in the driver’s seat. You may find prices a bit more reasonable and you will also probably find the sellers to be a bit more flexible in their terms. They may be more willing to accept a lower price than the one they are asking or they may be a bit more flexible as to when closing takes place or when you may be able to move in.

No matter when you buy, you should always take a few precautions, however. Don’t just run out to buy a house. First, meet with a lender and arrange to get preapproved for a loan.

That way, you won’t face the disappointment that would-be buyers often face when they offer to buy a house, only to find that they can’t get a loan due to a previously unknown credit problem. By meeting with a lender and getting preapproved, you have all of these potential problems out of the way. You can shop with confidence, knowing that you will be able to pay for that house, once you find it.

Don’t buy without a proper home inspection. In recent years, with the booming housing market, many buyers have agreed to buy houses without a contingent inspection in order to avoid losing out to another buyer. This almost always turns out to be a problem, as the seller could be hiding anything from termites to a bad foundation.

And finally, make sure you get a proper appraisal of the property before you agree to purchase. There have been a lot of problems recently with appraisal fraud, as lenders have been overly eager to move their mortgage products. Remember, it’s your money and you want to make sure the property is actually worth the amount of money you are agreeing to pay for it. 

One other way to do this is to ask your realtor to obtain a CMA for the property you intend to purchase. While not an appraisal, a Comparative Market Analysis is a document that shows what other, similar properties have been selling for in the recent past in that neighborhood. It’s just one more way of verifying that you are doing the right thing.

The winter can be a good, or even great, time to purchase a house. Sellers are fewer but may be more eager to sell. Just remember not to get too excited or overzealous yourself. Do your homework and make sure that the house is the one you want and that the price you are paying is fair.