While it is true that there is less real estate inventory on the market in December, it is also true that this may be the BEST time to buy! Not only will you likely wind up paying less for the property, but you will save on your buying costs as well. In the following post, I give you 6 reasons why.
1. Less Competition
There may be less sellers on the market in Decmber, but there are also less buyers! As holiday shopping, shorter daylight hours and poor weather cut into time available for house hunting, many people put off their property search until after the new year. This means that if you make an offer on a property, you are less likely to be up against competing offers. Due to lack of other options, sellers who want to move the property before year-end are more likely to accept an offer at a lower price, with less earnest money and/or with more contngencies during December than they would at other times of the year. Of course, this translates into a financial savings for you as the buyer!
2. Motivated Sellers
Let’s talk sellers. There is generally only one reason why sellers list property in November-December… they are highly motivated to sell and don’t want to wait for Spring! Whether this be a job change for the new year, an unfortunate family event or the property did not sell during the past Spring-Summer season, property owners with real estate on the market during the slow season are highly motivated to sell. Again, this translates to the buyer having more negotating power and being able to purchase the property for less than they would at other times of the year. Before you feel bad for negotiating against a seller that may be forced to sell their property, remember that you are doing them a huge favor by purchasing in the slow season regardless!
3. View How the Property Holds up to Weather
Depending on which part of the country you are looking in, the winter months are typically not as nice as the summer months and thus homeowners are more likely to encounter major issues. This weather change may be anything from a few degrees less and a few raindrops more to the great blizzards of New England or the Rocky Mountains. In either event, it is difficult to hide leaky roofs, drafty windows and other unsavory house qualities during inclement weather. When you tour a house in the late fall – early winter, be sure to take particular notice to any temperature changes or signs of water as you walk through the property. If you are curious about heating efficiencies, you should be able to obtain recent usage statistics from either your real estate agent or the local utility company.
4. Mortgage Rates
Mortgage rates are still at historical lows, but have been steadily climbing over the past several years. While there is no guarantee they will go up in the new year, history tells us it is highly likely. Securing your financing now will ensure that you are not subject to the increased market rates comes January. Be sure to consult with your mortgage broker to know what is best for your specific financial situation.
5. Availabiliity of Agent & other Vendors
Due to a lower volume of overall real estate transactions during December, you will likely have more attention and flexiblity from your real estate agent and other vendors. This includes availability to view properties at your convenience, flexiliby in scheduling home inspections, year-end specials from moving companies, discounted contractor rates and more. As most vendors are looking to increase Q4 business, be sure to ask about any current specials for the holidays.
7. Builder Incentives
A lesser known perk of buying in December is builder incentives. If you are buying a new construction home, you may be able to negotiate upgrades at a reduced rate from your builder. Similar to the above, many builders are looking to increase sales for the slow-moving month of December in order to end the year on a strong note. As such, your builder may be willing to cut you a discount on that upgraded tile or custom cabinets you have had your eye on!
Please feel free to reach out to me should you have any questions on the above or if you’d like to a get a jump start on your home shopping this holiday season!
Carolyn Quelly, Licensed Realtor
Coldwell Banker Chesapake
2525 Augustine Herman Hwy.
Chesapeake City, MD 21915