A common misconception among buyers is that the spring time is “selling season”. While the spring brings with it a lot of inventory and options for buyers to purchase in competitive listing and pricing, it’s not necessarily the “best” time to buy.
Buying from Home Builders
First things first, let’s talk about home builders. When is the best time to buy from a home builder? The answer to that question is easy: at the end of their fiscal (financial) year. While this will vary from one builder to another, the majority of the big names in the building industry end their financial year between October – December. When the end of the financial year is drawing close you will see builders heavily loading on incentives and price reductions, enticing consumers to purchase. When it comes to builders, and when it comes to springtime, you aren’t getting the best deal.
Consumers will find more leeway when they offer to purchase a builder’s inventory home (something already completed but not sold) than they ever will find with building from the ground up. Why? The builder is paying the increased property taxes, electricity and water in addition to having the construction loans to pay. For deal hunters out there, know that builders will take offers on inventory homes, and they can be an exceptional deal.
Like many builders in the real estate game, sellers need to know about the “best” time of the year to sell as well. Families move all year long, for a majority of different reasons. Putting your house on the market in the spring can increase traffic (benefit) which can help sell a home faster. However, like builders, those individuals relocating in the fall and winter months need a place to live. Homes that aren’t on the market aren’t getting looked at. Because of the lack of inventory during this time period can mean more fair offers for sellers and a good opportunity to have a fast sale.
Buy When Rates are Low
A buyers market is made up of two major factors: lower interest rates and large supply of inventory. During these periods, buyers will always benefit with lower sales prices and rock bottom interest rates. When a buyer is looking to buy, the search should begin with current market interest rates.
Talk to a Realtor
Local market conditions will vary from city to city. If you aren’t certain that now is the “right” time for you to buy, seek the professional advice that your Realtor can give you. Know the market conditions for your area before you start shopping.
Ultimately there is no “best” time to put a house on the market. So much of real estate is based on the right buyer finding the right house at the right time frame. Waiting to put your house on the market could cost you “that” buyer.