Before you download the home buying apps and hit the open house circuit, be sure to do your research on when’s the best time to buy a home so you don’t miss out on savings. You may be surprised by what you learn.
With many things, timing is everything. Did you know timing can be a big factor for when to buy a house? It’s true. So, when is the best time to buy a home? Here are three timing things to consider as you decide when to embark on the adventure of buying a new house.
Best Time to Buy a Home
Time of the Year
Peak home buying seasons vary by location. If you live in a region that experiences colder temperatures and snow, the warmer months — spring, summer and even early fall generally boast more options when it comes to what’s on the market. During these peak months, you may have more choices, but you may also see more competition. With more competition, be prepared to decide quickly and go in with your best offer up front. Also, don’t expect the seller to agree to many concessions.
In colder months, there are typically fewer homes on the market and there are less people looking to buy during this time. According to The National Association of Realtors, winter months have lower amounts of selling activity. With less competition, you may be able to get your home at a lower asking price or get the seller to sweeten the deal (like throwing in the surround sound system or opting to leave the washer and dryer). Sellers who list their homes in the winter may also be more motivated to sell quickly, which can translate to benefits for you.
An analysis by Realtor.com found that in 41 of the 53 markets they looked at, the first week of fall is the best time to buy. Their analysis found that during the first week of fall an average of 6% of houses on the market throughout the U.S. went through price reductions.
Low Mortgage Rates
If you’re looking for the “perfect” time to buy a home, you may be waiting for lower mortgage rates to hit. It’s difficult to predict when rates will be lower. Even when rates are low, keep the overall home value in mind to ensure you’re getting a good deal. If you do want to wait it out a bit, be sure to have your ducks in a row so you can move quickly when rates drop.
Your finances have a lot to do with when’s the best time to buy a home. The last thing you want is to buy a house you can’t afford. Buying a home is a big investment and financial responsibility. There may even be hidden costs to owning a home you haven’t factored in yet. Before you purchase a home, be sure you’ve crunched the numbers and can afford the payment you’ll be taking on.
If you’re finally ready to take the leap into homeownership, be sure to connect with your local Farm Bureau agent. Your local agent can help ensure you have the right about of homeowners coverage in place. Owning a home is a big milestone, make sure you’re protected.