When it comes to buying a home, timing can make a huge difference. But each season comes with advantages and tradeoffs. Here’s some pro tips.
Fall: best time to negotiate the best home prices
September, October, and November could be a great time for home buyers. You’ll find better prices and less competition. Sellers who haven’t closed deals by then are typically more willing to negotiate. Data from ATTOM Data Solutions shows that in October, buyers pay about 3.3% below the median home value, the lowest premium of any month. That being said, if you have school-age children in a different district, buying in November could be disruptive to schedules. And, depending on your timeline, closing might be less ideal during the holiday season.
Winter: a great time to take your time home shopping
From December to March, inventory might be scarce. People who didn’t sell their home in the summer, might just make some improvements and put their home back on the market the following spring (rather than lowering the price). But that means you can take your time (there’s less of a rush to close fast) and you might have solid opportunities for getting a good deal. Sellers who are still in the market will be more willing to take a lower priced offer if they simply don’t have any other options. Go ahead and negotiate hard, and that can mean overall home price, but also down payment amounts, closing date, specific conditions, and so on.
Spring: peak of the market
In April, May, and (to a lesser extent, June), you’ll have the most options, but expect higher prices and fierce competition. May, in particular, is the worst month for deals, with offers reaching up to 10.5% above market value. Sellers still have all summer, so they’re not likely to give anyone any special deals, and you’re likely in direct competition with multiple offers at the same time. It can be stressful, but of course there’s more homes to choose from and this is when you might find that perfect spot in exactly the right location.
Summer: late summer strikes a balance
In July and August, inventory is still relatively good, and as the market starts to cool off, some sellers might be more open to negotiating. You might also see some of the people who over-priced their homes in the spring begin to cut their asking price, since they don’t want to be stuck hanging on to the same place for another season (since they might not get any good offers come autumn). But this all depends on the market, of course—in the warm weather states like Florida the seasonal shifts might be less significant.
What are the advantages of buying a home during the off-season or specific times of the year?
Buying a home during the off-season can seriously cut down on both costs and stress, but there’s one thing to keep in mind: less inventory. With fewer homes on the market, your options might be more limited. But that’s also where the advantages kick in. Fewer buyers mean less competition, giving you the upper hand in negotiations. Sellers who haven’t sold by fall or winter are often more willing to drop their prices or sweeten the deal to close.
This also means the whole process can be a lot less chaotic. Without the pressure of competing offers, you can take your time to make smart decisions. Plus, with real estate agents and other pros like inspectors having more time on their hands, you’re likely to get better service and quicker responses. So, while the selection might be tighter, buying in the off-season can save you money and hassle, making it a smart move if you’re looking to reduce costs and keep things low-stress.
If you’re ready to start your journey to homeownership, get pre approved with Tomo Mortgage today.
