Everyone knows that spring is the prime time to buy a home, right? Right?
Wrong.
Long Island winters can be harsh; with cold temperatures and heavy snow, it just might not seem to be the ideal time to buy a house.
Homes are sometimes more affordable in the winter.
Although springtime is the busiest time in the real estate market, that doesn’t mean it’s the best time. However, homes for sale in the winter might require some imagination for buyers. Homes look stark against the backdrop of leafless trees and a snow-covered lawn.
But they may also be priced accordingly.
With an eye on the greenery staying in your wallet, buying a home in the winter can be a smart financial decision. Housing prices usually remain constant throughout the year, but because less houses are on the market in the wintertime, it becomes a buyers’ market, giving buyers leverage to negotiate a favorable deal. For houses that didn’t move during the spring and summer, the winter time opens with a sense of urgency that can spell significant savings.
The negotiating process could be buyers at an advantage—if they have the right help.
Keep in mind that with very advantage there is a potential drawback. Because there are fewer houses on the market, competition for those homes could get fierce. Bidding wars between prospective buyers could drive the home price up. In order to make sure that you don’t pay more than a home is actually worth, you should probably contact a Long Island realtor to help you with the negotiation process. Doing so can turn this drawback back into a benefit.
Plus, there may be some things that a home inspector cannot assess in the winter, such as the swimming pool filter or central air conditioning unit. While it could pose as a disadvantage once again, buyers may be able to get the seller to lower the price as a result. The best way to get around this is to negotiate an extended warranty or to hold some money in escrow until the summer units could be inspected.
Mortgage rates are still at record lows, which can certainly benefit buyers.
Another terrific reason to purchase a home in the winter is that Long Island mortgage rates are still low. After a nine-year hiatus following the global financial meltdown, the Fed has begun to take steps toward raising rates. However, as of now, rates are still at record lows. There is no guarantee that low mortgage rates will be the case come springtime. Buying a home in the winter instead of waiting until spring could be a great economic decision.
