When is the Best Time to Buy a House?

When is the best time to buy a house? This is a question I am asked with quite a bit of frequency. And the answer really depends on what you’re looking to achieve. Are you looking for the best price? Are you looking for the most inventory from which to choose? Or are you looking for a house that you just can’t live without – your dream house?

Here are some general* guidelines about the pros and cons of home buying at various times of the year:

The Spring Market (generally runs from January/February through late May) – If you’re looking for the most inventory from which to choose, this is it. In our neck of the woods (Weston, Wellesley, Wayland and the like), the Spring Market is our strongest, busiest time of the year. The most homes are on the market, the most buyers are looking and the homes are at their highest prices. The upside is that you have more homes from which to choose, the downside is that you are competing with more buyers for homes and you are likely going to pay more. But sometimes you have no control over the timing. If you are relocating to the area or moving from the city, you need to buy a home in time for the start of the new school year in September. This often mandates buying in the Spring Market.

The Summer Months (June, July and August) – The Summer Months can be interesting, and it’s hard to predict how they will be. Often if there’s been a late start to the Spring Market, the Summer Months can be quite active. But generally, it does slow down as people go on vacation, spend time relaxing and set their sights on things other than the real estate market. The good news about this? There is not as much competition from other buyers and prices can be a bit softer. The bad news is that there is usually a slow down of homes coming on the market so there is not as much inventory from which to choose.

The Fall Market (September through mid-late November) – The saying goes like this, “It’s better to sell in the Spring (think higher prices) and buy in the Fall (think lower prices).” That being said, the Fall Market is the second strongest market we have – after the Spring Market. So the good news is that there will be more homes from which to choose and there will be less buyers with which to compete. The buyers of the Fall Market tend to be local buyers; those relocating have generally purchased their homes already. The downside is that prices are higher in the fall than during the Summer Months and the Holidays/Winter – though still not as high as they are in the spring. The Fall Market is the last hoorah – the last formal market of the year – and sellers often raise their home prices accordingly.

The Holidays/Winter (mid-late November through the beginning of the New Year) – If you’re looking for a better price, this is probably the best time for you to buy. Plus you won’t be facing much competition from other buyers. But the downside to this time of the year is that the inventory is typically at its lowest so there is not a huge roster of homes from which to choose. Sellers generally take their homes off the market during this time when the market is slower and people are more focused on preparing for and celebrating the holidays than on buying homes.

On a final note, if you have fallen in love with a house, the strategies above go out the window. Your dream house is available now (whenever that time might happen to be), and if you want it, you need to act. Furthermore, for those of you relocating to the area, you don’t have much control over when to buy either. You need to buy in time to have closed on a home by July or August so that you can register the kids for school and get settled into your new home and community. This usually means one thing – buying in the Spring Market.

What are your thoughts? What time of the year did you buy your last house? And was the time in which you purchased your home something about which you strategized and over which you had control or not? I can’t wait to hear….

For more information on this or about the real estate market in Weston, Wellesley, Wayland and the surrounding towns or if you are considering selling your home, please contact me, Lisa Curlett (www.lisacurlett.com, 781-267-2844 or lisa.curlett@compass.com), to answer any questions or for a complimentary home appraisal.

* These are general guidelines, and there are always exceptions to the rules and norms.

Buying a Home in a Multiple Bid Situation

As many of you know and have likely experienced, the multiple bid situation is happening more and more these days. Especially with homes priced under $1 million in such towns as Weston, Wellesley, Wayland and Needham, multiple bids have become more of the norm than not. Given this current state of affairs, I wanted to share a few quick tips to help with the process when you are buying a home and either anticipate being in a multiple bid situation or find yourself in one:

• Visit the property more than once – sometimes this isn’t possible if the property comes on the market, and there are five offers on it that same day. But if you have the luxury of going back to see the home a second time, make sure you do. You often see new things or view things differently on a subsequent visit. A second showing may ultimately make or break your decision to put in an offer.

• Find out what’s most important to the seller – usually it’s price, but often closing date, your plans for the house (i.e., tearing it down or renovating it) or other such matters can be equally as important. It’s crucial to know this information before you write up the offer.

• Put your best foot forward – you may not get a second chance so make the offer the strongest you can muster. That being said, the inspection contingency (unless you are knocking down the house) is something you always want to include. If you feel comfortable financially and can eliminate the mortgage contingency, this can significantly strengthen your offer in the eyes of the seller. But this is something you have to consider very seriously because if you don’t have a mortgage contingency and don’t get financing, you will be losing your 5% deposit, which can often be sizable. If you’re not comfortable with taking out the mortgage contingency, the other option – if feasible – is to put down more money and reduce the amount you are borrowing. This can also serve to lessen the seller’s anxiety about the mortgage commitment process.

• Picking your “best and final” number – make sure the final price you give is really your best and final. This way if you find out that buyer party #2 got the house for just $1,000 more than your bid, you won’t be devastated because you weren’t willing to pay any more than your best and final number. It helps if you think about this final price in those terms.

• Show your commitment to the home purchase – put down more money as a deposit. It is standard where we live to put down 5% at the P&S (purchase and sale agreement). Often in a multiple bid situation, however, you will see buyers increase that amount to 10%. And though it’s just a gesture, because the money doesn’t even touch the seller’s hands until the closing, it does show your deep commitment to buy the house.

• Get your offer in on time and have all of the pertinent paperwork attached – if there is a deadline for offers, and you are late in getting in your paperwork, you could be doing yourself a disservice. The paperwork at this point in the process usually includes the offer, contingency addendum form, agency disclosure, pre-approval letter, copy of the offer check and completed lead paint form.

• Keep your fingers crossed and a smile on your face – if you tried your very best, and you did not end up “winning” the house, don’t despair. Either the deal will fall apart and you will have a second chance at the house. Or more realistically, you will find another home that is likely better suited for you. I know it sounds cliche, but “what’s meant to be, will be” – and 9 times out of 10, this is true and a good thing too.

Another factor to keep in mind is that you might want to communicate some personal background about yourself. This really depends on the scenario, and it is completely up to you and your comfort level, but sometimes adding some personal information can help the seller identify with you. On the other hand, sharing personal information can also work in reverse. But it’s something to keep in the back of your mind and weigh the pros and cons in each particular situation.

What are your thoughts on this subject? Have you ever been in a multiple bid situation(s)? If so, how did you fare? Are there other tips you would add to help with the process? I can’t wait to hear….

For more information on this or about the real estate market in Weston, Wellesley, Wayland and the surrounding towns or if you are considering selling your home, please contact me, Lisa Curlett (www.lisacurlett.com, 781-267-2844 or lisa.curlett@compass.com), to answer any questions or for a complimentary home appraisal.