Timing in Home Buying

The winter is the best time for home buying. This is not "common knowledge" at all, so there is much less buying competition in the market. It is a widespread belief among sellers (and among real estate agents, who should know better!!) that people don't care enough about buying a home to be willing to go out in the cold.

This means that the sellers who do still have their homes listed for sale are usually exceptionally motivated. This is precisely what you want. Most people, sellers included, are more inclined to be kind and giving during the winter holidays. Offers to purchase that would ordinarily be considered just too low in price, or have other commonly unacceptable terms, will often actually generate a counteroffer.

Now, before you decide against trying to buy a home because you are reading this in the Spring, Summer, or Fall - let me hasten to emphasize that opportunities abound for the serious first time home buyer throughout the year.

When you receive a "counter," it means you are probably about to get the house. It shows that the seller is interssted in continuing to talk with you. You and your real estate agent, being ace negotiators, are going to emerge from this process with an advantageous agreement.

But DO NOT fail to include an inspection contingency in your offer! If the home has major structural and/or mechanical defects, you simply cannot make a good enough deal to compensate you for what it is about to cost you. Remember to try to figure out WHY the seller is trying to sell, even in this off-season, and "run don't walk" away from the agreement if your inspector discovers major problems.

****As I write this at the end of 2006, it is a "buyer's market" in most places in the country. It is certainly unclear how long this condition will last - if someone tries to tell you that they know when the market in your area will heat up for sellers again, just laugh at him.****

Much home buying does occur in the wintertime. Many of these closings take place in December - builders and individual resale sellers alike are often anxious to close before the end of the tax year. It is frequently "worth it" to sellers to accept offers that contain provisions that require them to pay certain costs for the buyer.

It can be very advantageous for both parties to complete the home buying transaction with a land contract. One major factor to recognize is that the closing can take place MUCH FASTER when there is no lending institution involved in the process.

Being able to beat the 12/31 tax deadline can persuade the seller to provide owner financing to you. This is a huge benefit for you if the finicky lenders want to charge a higher rate of interest because your credit is considerably less than perfect. Low credit scores are not at all uncommon for young people - see this article on credit reports.

Don't hesitate to ask for concessions regarding the listed price and terms. The things that a motivated seller will agree to never ceases to surprise me. Home buying in the off-peak season can be very rewarding.

Paul Anderberg
http://www.first-time-home-buying.net

Mr Anderberg is the author of many helpful articles about home buying. Visit his website to read more. Several other articles of his are also available on this site.

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