You may be gearing up for the hectic holiday season – hanging decorations, buying gifts, baking cookies ….but may think that deciding on buying or selling a home during the holidays is not good timing. 

Think again!

Although the more traditional approach of real estate would dictate that you put your plans of buying or selling a home during the holiday aside until the Spring. But at the same time you can be successful if you decide on buying or selling a home during the holidays if you have the right approach.

Inventory is a bit lower this time of year, however, that can work to your advantage if you are a determined buyer or seller!

I bought my first home a week before Thanksgiving which had major advantages which I will talk about in each of these points. Yes, I know the market had issues but the flow of the market is still the same compared to 5 years ago.

This article isn’t to convince to buy or sell your home during the holidays if you are financially prepared too for buying or selling a home during the holidays. But if you have been putting off buying a home but you can afford the downpayment and monthly cost I don’t think you put your plans on hold if you don’t have too!

Here’s why:

1.)  There are fewer buyers out there.  Many buyers think that the holiday season is not a good time to buy a home so they pull back and don’t stay on top of what’s happening in the market.  That means less competition for those buyers who are serious about finding a home now.  

When I submitted my offer it was the only one in the sellers hands at that time. I was a eager buyer and with him knowing that with no offers in had he was more inclined to negotiate with us.

For sellers, the buyers that are actively looking for a home are serious—willing to do what it takes to get a home before Spring. They could be transferring to a job in the area or moving for another specific reason that can’t be delayed. All of these factors could mean a quick, easy sale for you.

2.)  You May Be Able To Negotiate The Price. While not universally true, some sellers may be more willing to negotiate on the price during the winter months. Reduced demand can put pressure on sellers to make their properties more attractive to potential buyers.

In my case we were able to get the home for $40k below asking price. The home had been on the market for almost 60 days at that point and with the Christmas holiday coming soon it gave us more of an advantage when working with the seller.

3.) Motivated Sellers or Buyers Could Mean Better Terms. Another advantage to deciding to buy your home during the holidays is motivated sellers. As with a lower price motivated sellers could lead to more favorable terms, concession to help with closing cost or temporary rate buy down programs.

Terms meaning length of time to inspect the home, more time to get your loan funded or maybe even a shorter/longer escrow if needed.

Seller Credits is money given to you by the seller that can be used for various things. One use can be to pay for the closing cost needed toward the end of escrow. Another case could be to use the seller credits to pay for a temporary rate buy down which I speak about in my article How To Navigate A High Interest Housing Market.

For sellers, this may work in your advantage if you are on of the most popular homes for sale at during the holidays. If you are in a situation where a buyer really wants your home you may be in the driver seat when it comes to some terms including the length of close of escrow.

4.) There are fewer homes on the market.  Many sellers who are not as serious about selling take their homes off the market or delay listing their property all together until the Spring. So any home for sale now will get attention and stand out on real estate listings.  

For buyers, there may be fewer homes on the market but what homes you see WANT to be sold.  This means good deals can be had.

This was definitely my case and at times it was frustrating. As a buyer I had finally made up my mind to purchase a home but couldn’t find any good options! My agent told me about the time of the market I was dealing with and that I needed to be patient for the right thing to come up during this time of year. At the end it all worked out!

5.) Homes and neighborhoods can feel cozier and more cheerful.  ‘Tis the season homes look their best, with beautiful trees, holiday lights, and crackling fires. Sellers should take advantage of that little perk since buyers will want to linger and start to feel at home!  

Buyers get a true sense of a neighborhood and home over the holidays.  Who doesn’t want to picture their own traditions in a home?

6.) Inspecting Homes in Challenging Conditions. Winter conditions can reveal potential issues that might be less apparent during other seasons. For example, you may notice drafts, insulation problems, or roof issues that become more apparent in colder weather.

This can be good for sellers as well who weren’t aware of an issue that may have come up in another season that they are now able to repair or fix before selling.

7.) Motivated New Home Builders. If you’re considering new construction, builders may be more motivated to close deals before the end of the year, potentially leading to better incentives, discounts, or added features.

During the end of the year new home builders may have homes that were build but haven’t sold yet and want to get sold before the new year. I just went to a KB Homes new build complex in San Pedro that was giving a lower interest rate than with any lender I have worked with at this time along with some appealing features in the fall. Imaging what they will give if there are a few homes left to sell.

For sellers looking to buy and sell at the same time and keep a low interest rate new build homes is definitely something to think about when purchasing your next home.

Check out my youtube video of the KB Home Skyview at Ponte Vista!

Some important points to keep in mind: Because of crazy holiday schedules and fewer open houses, online photos become even more important.  Sellers should make sure that their professional digital photos show the best features to increase the chances of making it onto buyers ‘must see’ list!

Buyers need to be organized with their time and schedule their appointments around holiday events. Looking at homes still needs to be a priority.

As you can see, the holiday season can be a great time if you decided on buying or selling your home during the holidays when you have the right approach and mind set. Make the most of it before the busy Spring season and more competition comes into the market.

If you’ve been thinking of buying or selling, I’d love to hear from you.  I’d love to share more insights on how I help clients this time of year, especially my off-market plan to find homes that aren’t even available to the public yet.  More than any other time of the year, this season is ripe for an off market sale and I’ll show you how.  

Email me at James.Daniel@exprealty.com and I’ll tell you all about it!  

Happy Holidays!