Posts Tagged ‘winter’

For one thing, there is a major tax incentive for buyers to jump on properties sooner rather than later this year. Under the federal tax credit that was extended for first time homebuyers and expanded to include repeat buyers, the homes need to be under contract by April 30th for the buyer to receive that tax break from the government… And, that sale has to be completed by June 30th. Considering that most people shop for about 10 weeks before signing a contract, this year sellers should expect to have a lot of foot traffic at their open houses even in January or February.

The other financial incentive for buyers to get rolling on their house hunt now is the fact that interest rates remain low. Some buyers are going to want to jump on the interest rates now rather than risk seeing them increase later in the year. Essentially, the same combination of financial factors that set sales soaring in the fall are still in place this winter, so don’t expect the buyers to disappear. And they are going to need houses to look through.

That said, sellers shouldn’t just sit back and wait for the throngs of buyers to come knocking on the door with their pre-approval letter in hand. You still have to do your part. Houses just don’t look as nice in winter as they do in summer so you should come up with ways to make your home more inviting. Try to show it as much as possible during daylight hours when buyers can see it in natural light. But be sure to give your windows a good scrubbing beforehand. Strong southern sunlight has a tendency to make dirty windows look really gritty, which might lead some people to think the house hasn’t been well-maintained.

It is still likely that you are going to have showings in the evenings after the sun has gone down. It’s important that on these dark nights to make an effort to make sure your home is as cheery as can be. If your place is dark and uninviting, it is going to be a tougher sell. It may even be tough just to get people through the door. Make sure you shovel away snow on walkways and clean up your porch lights to let the light flood your entry to the best of their ability. You may even consider adding a string of lights near to the entrance or some easy-to-install solar lights along the walkway to your house to make sure it is as welcoming as it can be.

Inside the house, check that all the bulbs in your lamps are at their maximum wattage and put some key lamps on timers. We all know how prospective buyers like to drive by homes that interest them at unusual times. Your house will always be a little more appealing if it appears well lit from the street.

Even if it is your personal practice to keep your thermostat down to save on heating costs, make exception for showings. Give it a good blast of heat before buyers come looking. They are going to want to look and linger in a warm and cozy home a lot more than they would one that has a little feel of that outdoor chill inside.

So there you go, for buyers and sellers alike, it’s a new year’s wish come true. A usually chilly season in real estate that ends up favoring you both.

One pretty obvious reason is that there is less competition than in summer, as some people will put off their hunt, particularly in colder climates.

All this could put you in the driver’s seat if you are a serious shopper. For one thing, with fewer buyers out looking, homes move more slowly so it is a better time to negotiate the asking price down — if someone really needs to sell and not as many people are seeing the house, they might be tempted to accept an offer below their asking price. Not only might they be willing to haggle over price. They also might be more willing to give concessions for paint or carpeting and they may also be more flexible on a closing date.

In winter, lenders are also less busy because they also have fewer people coming to them for home loans. With less on their plate, it is possible to expect that you’ll get more personal attention, as the process moves towards settlement.

Looking at homes in winter is definitely different. But that can be a good thing, too. For one thing, you might notice that a particular house is drafty, which is something you wouldn’t notice if you were looking at the same property in July. Drafts are an indication that the house might need new windows or that there are leaks that will need to be identified and sealed. Be sure to check the thermostat while you are in there. If it is set low and the house is still comfortably warm, it is probably well-insulated, which is a great thing to know. On the flip side, if the thermostat is high and it is not comfortable, that house will probably need insulation and may have exceptionally high heating bills.

On the subject of heating and cooling — one problem that arises in winter is that you won’t know whether the air conditioning system is in perfect working condition when the temperature outside is, well, so cold you won’t be able to test. Make sure to negotiate with the seller to set aside some money in an escrow account for repairs, should you need to do some work. If it does work perfectly, then the escrow attorney can return the money.

Your market might not be affected by weather in the winter months, but if you’re in an area that’s warm and balmy all year round, there are still some solid reasons to think about house hunting in the winter months. One, is the school year: Many families with school-age children often wait late spring or early summer, to start their house hunting. So, shopping now could possibly eliminate that entire array of potential competitors.

That’s also true in an area with a large college complex nearby. Teachers, professors, staff and all sorts of other people connected to the campus might just wait it out over the winter months, so again, if you start actively shopping now, you might avoid that group of competitors as well.

It all comes down to thinking carefully about when you’ll have the biggest advantages as a buyer. And in many parts of the country, the hottest time to house hunt might just be in the middle of winter.