Imagine it's the day after Christmas. You're still feeling the effects of the big, crazy family dinner from the night before. The last thing you want to think about is buying a house, but this article is for you if you are interested in saving thousands of dollars on a house. Read on to learn why December 26th, among others, is a great day to buy a home. Pack your parka, and let's go house shopping!
- Less Competition
- Best Months
- Best States
- Low AVM & Premiums
Less Competition
In the northern states, there tends to be less competition in the winter months. Why? People don't want to trudge through snow in single-digit temperatures to look at houses. Additionally, you might be busy with kids' school activities and preparing for the holidays. Don't let any of that dissuade you from looking for a house to buy. With less competition, you may find the house of your dreams, and it might be discounted to sell quickly. To use your house-hunting time wisely, talk to your real estate agent about scheduling a bunch of walk-throughs on the same day, and you'll still have time to attend your son's band concert.
Ask your real estate agent to schedule many walk-throughs on the same day
to make it easier to fit house hunting into your busy schedule.
Best Months
Many people mistakenly think spring and summer are the best times to look for a house to buy. The best months to find a house to buy are October-January because home prices are at their lowest and rates are favorable. And, as stated above, you'll be competing against fewer homebuyers.
Best States
If you live in any of the following states, or if you're planning to move to one of these states, you can look forward to the most significant discounts in home market values. If you were interested in buying a house for $300,000, you could save as much as $23,700 if you purchased it in February in Delaware. What a savings!
Delaware: -7.9% in February
Tennessee: -7% in January
New Jersey: -4.9% in February
Maryland: -4.8% in November
Ohio: -4.8% in January
Low AVM and Premiums
According to ATTOM, AVMs* and median home prices have been consistently lower over the past 8 years during the winter months. Over the same months, premiums have also been low, saving you up to 13.8% on your home purchase (premiums are the amount of money you pay each year for your home insurance policy). For example, premiums in May could be as high as 11.8% but as low as 2.9% in October. Cancel your plans for this weekend; you need to head for your agent's office and schedule a tour of homes for sale!
AVMs and premiums are lowest during fall and winter,
saving you thousands of dollars when buying a house.
Conclusion
If you want to save thousands of dollars on a house, consider house hunting in October and over the winter months. Not only will there be fewer homebuyers to compete against, but you'll also see lower home prices and lower premiums. Talk to your real estate agent to learn more about off-season discounts in your area and find a house of your own.
*AVM: automated valuation model. Means of estimating the value of a house using software-based pricing models. Home prices are based on data from existing properties and the sold price of homes, all homes being similar in size and features and sold at the same point in time.