You’re thinking about selling your home, but have decided to wait until spring to sell because you’ve heard so many times that “spring is the best time to list”. However, this is not always true and is a real estate myth. Check out these four reasons why you should list your home for sale in the winter!
1. Less competition. Because many people think spring is the best time to list, there is often less inventory on the market, which means less competition for you to find buyers. This means your home has a better chance of standing out amongst the competition. Wouldn’t you rather be the only home for sale in your neighborhood instead of competing with eight other houses?
2. Motivated buyers. The holidays are often a distracting time for people, and those that go to open houses or try to schedule private showings to “just look” and have no real plans of buying, are usually too busy this time of year. This is good for sellers because most of the people seeing their house will be serious buyers, that are pre-approved and are ready and willing to write up an offer. Another reason that sellers will find motivated buyers during the winter is because that is when many companies do their relocating. Buyers that have been relocated don’t have the time to leisurely stroll from house to house until they find the perfect one. They need to buy a house quickly, and if your house is one of the few on the market that fits their needs, it could be in high demand.
3. Loans may be processed quicker. Lenders tend to be less busy during the winter, due to less activity in the real estate market. This is a plus to sellers because once the house goes under contract, it has the potential to close quicker than if the home was selling during the summer, when lenders are slammed.
4. Interest rates are going up next year. Interest rates are at an all time low right now, and will be going up next year. Therefore, if you can, NOW is the time to sell or buy. By waiting until next year when the interest rates rise, you could be missing out on tens of thousands of dollars. If you’re selling, the pool of people that could afford your home before no longer can, because at a higher interest rate, they can afford less. On the buy side, you will cost yourself tens of thousands of dollars during the life of the loan. Don’t believe me? Check out a mortgage calculator for yourself! Try entering the information at an interest rate of 4% and then try at an interest rate of 4.5%. Multiply the monthly payment by 360 (the amount of months you will have a mortgage if you use a 30-year loan), and see how much more you will be spending over the life of the loan at the higher interest rate. Yikes! Therefore, if you can sell or buy before the new year, this is the time to do it!