Waiting for Spring to Plant a “For Sale” Sign?

by Jill Heineck, Associate Broker
Heineck & Company @ Keller Williams Realty Peachtree Road

As sure as new sprouts of green grass arrive in the spring, so do the For Sale signs. It happens overnight. You wake up, it’s spring and half your neighborhood has sprouted signs. That’s quite different from the look of things now. I bet there are only one or two lonely signs out there.

So is there an advantage to buying a house now, before the frenzy of spring market? The National Association of Realtors (NAR) tells us that even though a qualified pool of serious buyers exists, there is also a significant shortage of move-in-ready homes available. This is good news for buyers because a slim offering can, in many situations, put them in the driver’s seat.

While there may be some drawbacks, you shouldn’t be so quick to rule out buying homes right now. Let’s investigate some pros and cons.

The Possibilities

The pros really work in conjunction with one another, but let’s look at them individually.

Less Competition: Less competition can help a buyer in a multitude of ways, granting her more time to consider her options, less worry of being outbid by another buyer and increased negotiating power.

Motivated Sellers:  If a home is listed during the off season, you can assume that seller is motivated. And motivated sellers often have a capacity for negotiation.

Increased Negotiating Power: With fewer buyers looking, the motivated seller may be more willing to negotiate than during a time of greater buyer interest, thus enabling the buyer to yield a better price.

Test of Home Quality: With all major systems being tested during the winter, it’s a good time to see how the house withstands the weather, granting the buyer real time exposure to the house’s quality.

The Challenges                                                                                  

Challenges are just that. There is a flip side to each.  

Less Inventory: There is no denying that fewer homes are on the market right now. However, this could be a buyer’s opening to secure that diamond in the rough.

Winter Weather: Buyers may fear that winter weather disguises unsightly problems or unattractive landscaping. Consulting an inspector and requesting summertime photos of the home can help allay buyer worries.

Winter Weather (Again): Buyers may have zero interest in facing the elements to check out new homes. I get that. But fortified with a wool coat, a stylish scarf and perhaps a Soy Chai Latte, you could easily be prepared for a winter house-hunt.

Available Help: Buyers may be concerned that brokers and bankers will be off for the holidays or busy with year-end or new-year activities. Remember this — a motivated buyer will always be able to find a motivated Realtor® and mortgage broker to help with the purchase.

Obviously, there is no single answer to whether buying a home now makes the best sense. A lot of this depends on your specific circumstances. However, there are some benefits that often get overlooked. I have seen things work out well on both the seller side and the buyer side.

I recently had a reticent seller push back on listing in December, and guess what? She opted to go with my recommendation and had a full-price offer in less than five days. In fact, we never even went to market. I also had pre-approved buyers who wondered if they should even bother looking. After looking at five houses, they made an offer on their favorite and were under contract within 24 hours.

Now, if you see a house in December or January that has been on the market for months, be wary. It’s typically a price problem teamed with condition issues. Houses sitting become stale, and no one likes stale bread.

At the end of the day, the best time to sell or buy a house is when the seller or buyer feels ready. Think about what works best for you, and go for it.