We all know the stereotype of the “best time” to buy and sell a home: Spring and summer. You’d think this is true, too: If sellers are putting their houses up for sale in the spring, then buyers have the best chance of buying at the best deal then too. However, looking more deeply into this stereotype, we find that it is not true. Most sellers will put up their houses and buyers will be on the lookout as soon as spring hits. Waiting until the crowd runs the market and overworks the sellers is the best bet of getting a good deal on a house. Why? Because many “buyers” looking at houses in the spring are not serious buyers. Sellers will then grow antsy from having their homes on the market for so long and will lower their price.
Why do sellers put up their houses in the spring?
One of the main reasons, probably, is the fact that they are wanting to move out during the summer. Kids are out of school, making the transition that much easier. Also, after being forced to stay in their house throughout the winter, they are eager for a change.
Why should buyers wait until the fall or winter?
According to NerdWallet.com, the average price drop from summer to fall is $7,228 (to see price changes for specific places in the U.S., check out this link). There are multiple reasons why waiting until after the rush of the housing market slows down to start looking for houses is a good idea:
- After being on the market for so long, sellers will lower their prices in hopes that someone will give them an offer
- There is less competition from other buyers looking at the same houses
- Sellers will take you more seriously – after having multiple offers in the spring and rejecting all of them, they are getting more desperate as time goes on
Yes, there will be fewer houses to look at in the fall or winter. However, you will most likely pay less and not take as long to finalize loans or contracts because banks and real estate agents are not as busy with other buyers. Knowing how to work the market means that you get the best deal possible on your dream home or rental portfolio.