When is the Best Time to Buy a Home?

When is the Best Time to Buy a Home?

We all know that the best time to buy or sell their house would be spring. However, this is not necessarily true, it’s just that spring is real estate’s busiest time of the year. Real estate experts and home building technicians note that the emphasis on spring as the best buying season has its good reasons, nevertheless, there are some common enduring misconceptions that have been made about the real estate market.

Many buyers and sellers in real estate should then rethink about the seasons, and consider looking at the best season that will suit their house and area of location. Even though fall and winter are known to offer less inventory, most people who buy homes during this time are serious buyers (buying a house with a purpose). They have a very good reason to relocate. Unlike the spring buyers who might come in large numbers to check out your house, a larger percentage will just be looking. It’s better to deal with two serious buyers in winter who will come with their agents and close a deal within a few days, than to deal with more than 30 looking buyers with a very low chance of actually buying the house. Also, the other hidden advantage with winter is that the low inventory increases the amount of time spent shopping. Buying or selling a house in the spring can be challenging because the real estate spring season sometimes may not coincide with what the calendar is saying.

In the real estate market, January marks the beginning of spring. At this time, everyone seems to have a handful of activities to deal with after the holidays come to an end. The season ends around mid-May. At this time, many people tend to list and sell their homes and this trend continues throughout summer. As you move closer to the end of summer, the listings will begin to tail off. September will be a low month because the graph continues dropping for the subsequent months until you have the lowest listings in December. This doesn’t mean that in December, real estate will experience zero activities, it’s just that the inventory will be low.

Most buyers and sellers in the real estate market should not depend on your agent’s enthusiasm when experienced with a scenario of low inventory and high competition for the buyers. This will turn into a bidding war and only the smartest agent will win.

Having a moving timetable is very helpful. Obtain your own personal real estate schedule that dictates when you prefer to move in or out of the house. Start working backwards using the timetable. Calculate the average time needed from the contract negotiation to the closing a deal, depending on the region (most agents suggest the timespan to be around 4 weeks). But to be on the safe side, it can take up to three months.

Look at what builders are offering you with regards to building a new home from scratch. This is very crucial for buyers who would like to move to a newly built house. The one-month time frame might be possible for a buyer who wants to purchase a spec home (quick move-in), a new house that is partially or fully built by the house builder. A longer period of time will be required for home buyers who are designing and constructing a new home from scratch and a have large volume builder. The bigger contractors offer more efficiency and shorter building time, unlike the custom/small builders who take a few more months. The custom house building process can even take many months as both the constructor and buyer look for the best model/design.

Are you in the market to buy a home in Orange County? Click here to contact the Ryan Grant Team today!