As the temperature drops and inventory is low, the winter season can mean an opportune time for savvy homebuyers and investors to negotiate better deals compared to the bustling summer months.
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While traditional seasonality in real estate may suggest that spring and summer are the ideal seasons to transact, winter presents its own set of opportunities. Here are five tips to negotiate a better deal in real estate during the winter.
Embracing the Chill
As the days grow shorter and the chill settles in, winter is an unconventional season for home browsers to be out and about on showings. In this market, where the norm may be to hibernate until warmer days, eager buyers can seize a unique opportunity by venturing out during the colder months while the temperature and competition are low.
Deciphering Seller Motivation
The psyche of sellers can change during the winter season. Winter sellers are cognizant of the preferred spring and summer selling months and find themselves in a unique predicament during colder months. It could be the pressing need to relocate for employment, a death, or a life event that is propelling the move. Knowing the motivation behind the seller can work in the buyer’s favour to negotiate a better outcome on the transaction.
Prudent and Comprehensive Inspections
While a home inspection is a prudent step in any season, winter brings unique conditions that may expose issues that could go unnoticed during the summer. Drafty windows, temperamental heating systems, and roof leaks are more apparent during colder months. A thorough home inspection report becomes your guidebook in negotiations, offering tangible evidence to support your bid for a preferred price or repairs before closing.
Basics of Days on Market
A home’s listing history is a great tool to help with negotiations. Is it fresh on the market, or have the days on market (DOM) reached double digits? Generally speaking, the longer a home sits dormant on the market, the more advantages lie with the buyer at a favourable price. For example, a home with over 15 days on the market shows that the seller is staying firm with their asking price. However, a seller who has listed in November and sees 60+ DOM might review an offer where the buyer has an advantage on both offer terms and price.
Work with a Local Real Estate Professional
The winter months might also be a time when sellers want to test the market before they list formally on the local MLS. It may also be an opportunity to find an off-market listing. Working with an agent with an established network could give you exclusive access to properties others don’t, and as an expert, they can provide insight and advice to negotiate an off-market deal on your behalf.
This winter window of opportunity is a prime time for buyers before the spring and summer frenzie, that many are eagerly awaiting. While competition remains low and some negotiating power on your side, there’s opportunity for a great price and contract terms that might surprise you this winter. We’re here to help you find opportunities. Give us a call today to speak to a real estate agent in your city.
