The latest question we have been asked several times from home buyers is “We want to wait until next spring to buy a home, why should we buy a home this winter?” This is a very good question and my business partner and I have compiled a list of over 25 reasons and then we narrowed our list to the Top 9 reasons why real estate home buyers should buy a home this winter.
1) Home Prices are lower now then they will be this spring
Why should a home buyer buy a home now versus waiting this spring? Buying a home now will save the buyer money. Currently there are fewer buyers now then during this past spring or summer. There are more buyers looking for homes during the warmer times of the year. Serious home sellers will have more pressure to sell when homes sales are slower. Serious home sellers will either be listing their homes below market or lowering the list prices of their homes to attract buyers. With lower prices, buyers will instantly save. Last week I was working with a buyer who narrowed their list down to two homes. After looking at comparisons we noticed that both homes were priced under market by $10,000-$15,000. We decided to make an offer of $30,000 under list price on our number one choice. The seller was really mad. We decided to look at the number two choice home again and make an offer on. We did the same thing. We made an offer, $30,000 off of the listing price. The seller countered at $15,000 under list price and we countered at $20,000. During the appraisal today, the appraiser estimated that we bought the home $35,000 under value for a pristine home listed under $190,000. Do you think the buyer is happy?
2) Home sellers are more emotional
With many home sellers experiencing high financial debt, their only way out is to sell their home. Anyone who has experienced the endless creditor phone calls will understand what steps a person will take to end those phone calls. Catch a seller who could easily solve their problems by selling their home and you will most likely catch a good deal. After showing 20 homes this weekend, I received 8 phone calls from desperate sellers saying that they needed to sell now and would look at almost any offer. Three sellers said that they had some extreme debt to payoff. I will remember these homes for future buyers who want to catch some good deals.
3) There is more interest on the internet
Many companies have their relocations planned for right after the first of the year, so many relocating employees will use the holidays to plan exploratory visits and searching the internet. By having your home on the market and internet now, buyers will have the time to view your home when they are more relaxed and have the time. The past two years the hits on our website have tripled from mid December to the end of January.
4) Some home sellers will be better off selling now
According to the CPA’s and financial planners we work with, many home sellers would be much better off selling now to get a better tax deduction. Catch a seller who would benefit from a huge tax deduction and they may be more negotiable to sell fast.
5) Buy now and move after the holidays
Experience tells us that sophisticated home buyers understand that they can make a purchase now at a great price and move after the holidays. Get a great deal now and move when things slow down. Home buyers who buy new homes now can catch the end of the year specials and move when the home is completed this next spring. The buyer has the control in today’s buyers market. If agreeable terms are not agreed upon, the buyer can always go to the next home.
6) Capture a lower interest rate
Currently we are experiencing low interest rates. Experience tells us that interest rates start edging up the end of January. A sophisticated home buyer would like to capture the lower interest rates by locking in on the low rates while they are still low. Some lenders have lock and shop programs. Lock in on a low interest rate now and shop for the next few months’ pressure free for their dream home.
7) Get guidance and help
During the holiday season it is more likely that friends and family can visit during your home shopping visits. The more advice you can get, especially if you are a first time home buyer, from people who know you the more likely you will make less mistakes. First time home buyers sometimes find it difficult to ask the right questions. By having a family member or friend around who knows what to ask or who knows your wants, the process can be easier.
8) Home builders are experiencing pressures
During the winter time, the amount of new homes sold goes down. One new home agent reported that his sales are a quarter of what they were this summer. With builders building costs and the cost to borrow money increasing, builder are more likely to negotiate on the sale of their new homes now. Typically, builders haven’t negotiated on price the past 4 years. Today I received 3 flyers from new home agents with price reductions on their inventory.
9) Lower payments
We are getting contacted on a weekly basis of new and better loan programs that will help lower the monthly payment the home buyer will pay to the mortgage company. Lenders have the time to find better loan programs for home buyers now. If a home buyer waited until this spring to talk to a lender and they will most likely talk to a new loan officer who has limited time to work with you and limited experience to find the best loan program. One home buyer we worked with saved $234 monthly by finding a better loan program. What would you do with an extra $234 a month?
Savvy home buyers like Knoxville companies that buy homes prefer to buy when home prices are lower and the amount of buyers is lower. Currently, in most markets, the number of homes for sale is down 10% and the number of buyers looking for homes is down 60%, compared to this past summer. A savvy real estate buyer would like to get a great deal. With the real estate market being a strong buyer’s market, why would a buyer want to wait until the market shifts to a sellers market?
If you are a first time home buyer or a move-up home buyer and you would like to get a good deal, we would be happy to work with you. With foreclosure listings at an all time high, we are sure that the next best deal is right around the corner.