The spring and summer housing season is busy in Philadelphia. Without the hassle of winter weather, and the end of the school year right around the corner, many people list their homes Between March and July. They are hoping to capture some of the large number of people who want to close on a home in the late spring and summer months, before school starts again in September.
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There is definitely a large inventory of homes for sale during this time period. But unless you are looking for a very specific house in a very specific area, this time of year might not be the right time for buyers to be looking. Why would a seller not want to start searching when the market is ramping up? Simple! Competition. Let’s talk about how buying a home in the off-season can work in your favor.
Nice weather (to better view the curb appeal and landscaping) and the school year often force people to move between June and August. But if you aren’t tied down by those constraints, you actually might find a better deal – and a better home.
Even though inventory dips in the winter, there are always homes on the market. A job transfer, death in the family or even a financial crisis might mean putting up a home for sale at a less-than-ideal time. These life events can also mean that the seller is very motivated to sell ASAP. Because of this, if you find a home you like in the late fall or winter, you are less likely to encounter multiple offers or a bidding war situation. In the spring, sellers have the luxury of being firm on the price of the home, since most expect several offers in a short period of time. In the winter, a seller might be willing to negotiate more. Basically, if you buy in the winter, you are more likely to have any reasonable offer accepted!
What about homes for sale that have been sitting on the market since that peak selling season? Being on the market for a while might signal to some buyers that there’s something wrong with the house. But that’s not always the case! Often, a home that takes a few months to sell is 1) a unique property, 2) a highly-priced property (either slightly too high for the home itself OR appealing to high-end buyers, limiting the market), or 3) not quite move-in ready. If you are fine with something quirky or have needs that a traditional buyer doesn’t, the first case probably appeals to you. If you’re willing to put in a little work, a fixer-upper could be the deal you are looking for.
And speaking of deals, winter is also prime selling season for foreclosures and short sales. Not only do banks not use the selling season when determining when to list a foreclosed home, but the lack of buyers mean that even banks are susceptible to accepting a deal in the off-season. Short sales often occur because of job transfers or other emergencies that require someone to sell when owe more on their home than what the market will bear for its sale. This means the seller is motivated, assuming the bank will approve the sale price.
Additionally, when the market heats up in spring, prices may adjust – usually up! With less inventory in winter, sellers are often relying on comparative properties from the previous year to list their homes, even if the market is starting to trend up.
If you are looking to get a jump on the spring housing market and find your perfect property this winter, please contact me. And remember: friends don’t let friends buy or sell homes without Agent Lady!
About Agent Lady: Cherise Wynne is a leading real estate agent in Philadelphia, helping home buyers and sellers navigate the City of Brotherly Love, with a special focus on first time home buyers. To chat about getting started with your first time home buying experience, click here.
