I’m a Real Estate Expert: Here Are the Best Times To Buy a House
Written by
Cara Danielle Brown
Edited by
Jenna Klaverweiden
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If you’ve ever considered buying a new home, you’ve heard the saying “Location, location, location!” Well, as it turns out, the when can be just as important as the where. When homebuyers decide to shop for a house can make a significant difference.
So when exactly is the best time to buy a house? Well, that answer depends on buyers’ individual needs, circumstances and priorities. For example, are they looking for the cheapest price or the widest selection? GOBankingRates spoke with Lori Poirier, Realtor at Coldwell Banker, to get the inside scoop on the best times to buy a house.
Also see eight signs you should look for before buying a home.
Spring: Most Variety
“The spring market is the most active time for listings and eagerly waited on as if it were the annual Filene’s Basement Sale for real estate,” Poirier said.
This is especially true for neighborhoods with lots of school-aged children. “The school year is ending and this is when most home sellers will list their property and seek a closing date for after their kids are out of school,” she said.
A buyer could face a lot of competition in the spring because of the hot market. This means bidding wars can drive up prices. Spring is usually a seller’s market, which is why Poirier cautioned that, if one’s budget is limited, it may not be the best time to try to purchase a home. But if inventory is a prized commodity and money is no option, start shopping.
Winter and/or July: Best Deals
If one’s goal is the best deal, Poirier explained that winter is the best time to purchase. “You have less inventory and less competition, and most people selling during the winter must sell — either death, divorce, relocation or affordability problems are the impetus to sell,” she said.
Plus, most buyers are too distracted by personal and professional obligations near the holidays to focus on home shopping. Winter usually affords the most room for negotiation.
Buying at the end of the year also has tax benefits. “By buying at the end of the year, you can immediately file for your homestead exemption, which will help lessen your tax burden,” said Missy Derr, real estate advisor at Engel & Volkers.
Poirier said that July presents another opportunity for good deals. With everyone taking summer vacations, it’s typically the least active month. “If a home is coming on the market during July, it’s a motivated seller or an inexperienced real estate agent,” she said.
August to Early November: Less Competition and Fair Inventory
For buyers looking to find a middle ground between variety and affordability, August through early November is a sweet spot. This time period is often referred to as the “second spring” market.
“There is still a decent amount of inventory that isn’t selling so fast,” Poirier said. Because of this, prices could be reduced. Here is where timing an offer is especially important.
“It’s ideal to strike prior to a price reduction because once the price is reduced, it increases competition, which means a bidding war,” Poirier said. “It’s not unusual to see a home do a price reduction, receive many offers and then sell for over the original listing price!”
Times To Avoid Closing
When it comes to when to close on a home, Poirier recommended staying away from a few specific days and times.
First, you may want to try to avoid the 15th or the last day of the month. “Those are the busiest times for lenders, lawyers and county recording offices,” Poirier said. “If you close on these days, you run the risk of the deed not getting recorded, which will wreak havoc on movers, cable installers and anything else you planned.”
Friday is another day to avoid if possible. Similar to the 15th and end of the month, if you have an issue with your closing, it will get moved to the following Monday, thus derailing movers, etc.
Lastly, the week of Thanksgiving may not be ideal. Because this week is short, most people take off. You all but guarantee yourself a problem if you try to close the week of Thanksgiving.
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