From December to February, the real estate market is at its slowest due to the holidays and the cold weather in many regions. But according to the National Association of REALTORS®, over 11,300 existing homes and 1,600 new homes are sold per day on average from December to February.
That's still a lot of houses!
The winter months certainly provide a different set of challenges and complexities compared to the peak-selling season of spring and summer, but they do have several benefits. Sellers can take advantage of less competition in the market during this period, while buyers have more negotiating power as homes stay longer on the market.
Here are some things you should know about buying or selling a home in winter so you can take advantage of the season’s unique upsides.
For Sellers:
You've probably heard that winter is a tough time to sell a house. Traditionally, it was. Fewer people were looking to sell in the winter months because in many regions, the weather is not as nice and it’s difficult to improve a home’s curb appeal.
However, this has become less of an issue due to the widespread use of real estate technology. The seasonality of house sales has become less of a concern since there are home-buying apps and virtual home tours now available. Even if the weather’s cold, buyers can now view the home from their computer or mobile device to get a good insight into the property.
Online property portals also provide a platform for endless images and videos of a listing. Video messaging apps, such as Skype, Messenger, or FaceTime, also make it easier for real estate agents to carry out live tours and Q&A sessions regarding the property.
Of course, virtual tours can never replace in-person visits. After all, buying a home is a huge commitment, so serious buyers will still want to visit the home at some point. But because of these tools, the winter months are no longer as difficult a time of year to sell a home.
Staging is a crucial element when selling your home. To specifically appeal to winter buyers, you may need to make small but effective changes to make your home stand out.
Here are a few tips to make your home as inviting as possible for a showing:
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Ensure that your home is well-lit. Since a home will appear darker and less appealing in winter, lighting goes a long way in making your home seem welcoming. Bring in as much natural light as possible by pulling all the curtains to the side of the window. To better accommodate viewings after dark, brighten your home's exterior with porch lights, decorative lanterns on walkways, and attractive side lighting to create a warm glow.
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Make sure holiday decorations do not overpower the space. If you’re selling around the holidays and have decorations up, keep it simple. If you’re selling once the holidays are over, carefully consider your displays so your house won’t show wreaths and reindeers in the middle of January.
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Avoid showing a winter wonderland. Snow looks great in photos, but buyers want to see details of the property, not a blanket of snow. Have photos of your home taken in clear weather for buyers to reference.
During the busy spring and summer months, many people attend open houses without a clear plan to buy. In winter, though, it's different.
If anyone is looking at your property for sale this time of year, chances are that person is serious and ready to buy. They’re breaking away from their hectic holiday schedule or spending their time off attending house showings despite the freezing weather.
These winter buyers could be working against a deadline, whether it’s a job relocation by the start of the year or an expiring lease on their current home. They may also be trying to snag some tax breaks before the end of the year.
For Buyers:
This is probably one of the major advantages of buying a home in winter. It's a great time to see how energy-efficient the home is, especially in parts of the country where winters can be harsh.
Savvy buyers are more interested in seeing the property when the weather is at its worst. When buying a home in the spring and summer, it might not even cross your mind to evaluate the efficiency of the insulation, windows, fireplace, furnace, and water heater. These are essential considerations, especially if you want to cut energy costs during colder months.
It's a fact that fewer people put their homes up for sale during the winter, which means a lower inventory. At the same time, winter can be advantageous to buyers since there is less competition from other prospective buyers.
There’s less movement and it’s less busy, making the entire process a little less stressful. Moreover, buyers may have more negotiating power, as sellers may be more motivated and willing to accept offers. These motivated sellers might also offer off-season discounts and negotiate other terms, including the closing date.
If you close on your home purchase on or before December 31st, you can enjoy tax deductions for mortgage interest, property taxes, and interest costs of the loan.
If this is one of the reasons you're aiming to make a move during the holidays, make sure to consult your trusted real estate agent and a tax professional to fully understand and take advantage of the tax benefits associated with homeownership.
For Buyers and Sellers:
Whether you're selling or buying a home, having a trusted and knowledgeable real estate agent by your side can make a huge difference in your real estate journey.
During peak home-selling seasons, agents’ schedules can get hectic, making it difficult to provide undivided attention to dozens of clients. With fewer listings on the market in the winter, agents often have more time to offer personalized support during your home search or sale.
They can dedicate more time to arranging showings, hosting viewings, assisting with market research and pricing, and helping you negotiate the best possible deal.
