Wednesday, February 06, 2019 / by Holly Northup
Across the real estate market, it is a little-known fact that spring is the best time for the market. However, while spring may be the best time to sell a home, it isn’t necessarily the best time to buy. How come? Increased competition and overpriced homes are the reason. If you’re a buyer, be patient! It turns out; fall might be the best time to buy a home!
If they can help it, sellers aim to list their home in the spring, leading to an increased supply of homes on the market. As supply increases, so too does demand. With a larger inventory of homes on the market, buyers swarm – increasing competition and, at times, driving up home prices. The fall season is just the opposite. As the majority of potential buyers have already found their home, it is safe to say there are probably fewer buyers perusing the market. Less competition means two things: more time to decide on a home without the fear of it being snatched by other buyers and a decreased likelihood of a bidding war.
Fair Market Value Listings
Although spring is the ideal time to sell, some listings remain stagnant – receiving little to no attention from prospective buyers. Why is this? Most likely, the home was priced too high for the market. Overpriced homes don’t sell. Why do sellers think they can get away with higher home prices in the spring? Simple: because of the number of homebuyers out-and-about searching for a home. Pricing your property competitively the first time affects both how long your home will remain on the market and how much your home will net you at closing. Generally speaking, a property generates the most activity when it first hits the market. If a property is priced too high, it will likely have to drop in price - missing the excitement phase and high-activity period from potential buyers. Waiting until fall could allow you to scoop up spring listings at a steal! On top of that, new homes are always entering the market. These new fall listings will generally hit the market at a lower asking price than they would have in the spring. If you’ve waited until fall to purchase a home, you’ll likely have an opportunity for a great deal - either a new listing, for a price better than you would have seen in the spring, or a home that has been on the market since the spring, with motivated sellers, anxious to get the home sold!
Patience can pay off in dollar signs– especially if you wait until fall to fall in love with a home!
Let us help you fall in love with a home this fall. Give us a call anytime!