‘Tis the Season: Looking at the Market from Two Perspectives
por Jill Heineck, Broker Associate
Heineck & Empresa @ Keller Williams Realty Peachtree Road
History repeats itself year after year in the residential real estate market with the seasonal slowdown. In many parts of the country, winter weather is a factor. Geography aside, the holiday season is upon us, and most of us are thinking about parties and presents, not painting and pre-approvals. In the Atlanta area, it’s not until around the Super Bowl that the market starts seeing more activity, such as an uptick in loan pre-approvals and pre-market home prep.
assim, what does this say about houses on the market in this so-called off season? Buyers and sellers tend to see it in two different ways. Part of my job as a Realtor® is to bring my clients’ expectations in line with market realities – whether it’s a realistic asking price or what to expect from the off-season market.
The house-hunter’s perspective
You see yourself in the driver’s seat for negotiating a great deal. Afinal, a seller must need to sell if the house is on the market when demand is relatively low. It’s true that buyers in an off-season market are often in an excellent bargaining position. But as a buyer’s agent, I would caution my clients against testing the waters with an offer that’s just too low. All it takes is a better, more reasonable offer from another prospect and you could be out of the picture.
It’s also vital that you’re ready to seal the deal when your offer’s accepted. That includes being fully pre-approved for a loan. My team and I work with buyers only after they are fully pre-approved, because the same seller urgency that works in a buyer’s favor for price could cause the deal to fall through if they’re not ready to move forward quickly.
The seller’s perspective
You figure you’ll make out well – with so little competition this time of year you’re bound to get better offers from prospects who need to buy. The thinking is sound, but as the seller’s agent I stress to my clients not to cut corners. Home prep – repairs, landscaping, painting, staging, etc.. – is every bit as important in the off season as it is in spring and summer when the competition can be fierce.
Purchasing a home is a big deal. And few buyers will settle for a home that’s not looking it’s best just because it’s one of the few available. Failing to prep could lead to no offers, which in turn leads to learning the hard way how important prep is. Plus the market has a very, very long memory, and the impression your house made the first time around will live on long after you’ve finally prepped – just when the competition is heating up. Avoid the grief: Take the time to prep before you enter the market.
Buying and selling in the slow season can be wonderfully successful on both ends of the transaction. In fact the fall and winter months have been some of the most productive seasons for our team. The key lies in not overestimating the advantage you have as the buyer or the seller.