Fritz Pfister

Are you just starting to look for a home to buy? Have you looked and can’t find what you’re searching for? Have you decided to wait until after the New Year to resume, or begin shopping for a home? You might want to reconsider.

In the Springfield, IL. Home market, the slowest sales period is Thanksgiving through New Years. What is the advantage to buying during the slowest time of year? Ever hear the old adage “buy low, sell high”? The best time to buy is when you have the least amount of competing buyers for the really good homes. Wait until Spring, and that will change.

Sellers that are on the market putting up with the hassle of showings, having to leave the home, and always being prepared to show, are serious sellers. Many have lowered their prices to get offers, and many are willing to negotiate a better price now than in the Spring.

Many sellers that place their homes on the market with no legitimate need to sell, other than for an exorbitant price, and profit, have taken their homes off the market. I call them “players”.Wait until Spring to see the players return at even higher prices hoping for an unrepresented, or under-educated buyer to pay their price. Be careful even this time of year about buying a players home. If you buy an overpriced home today, someday you’ll have to sell an overpriced home.

In my opinion this is the best time of year to buy a home. This year is an especially good year to buy now, due to the historically low interest rates, and a record number of homesellers remaining unsold, and begging for offers. There couldn’t be a better set of market conditions for buyers, than there is now.

If you find a seller that has already lowered their price to a fair price, you can do one of two things. Ask for a better price in your offer, or offer the seller what they are asking in return for the seller paying discount points to your lender to lock in at below market rates.

For example if the seller is asking $105,000 you could offer to buy at $100,000 saving $5000 at purchase. Or offer full price and ask the seller to pay $5000 towards 5 discount points on your $100,000 loan, and the interest rate will drop from 6.25% to 5.625%, saving you $62.50 on your monthly principal and interest payment. This is an example, ask your lender to calculate your payments at differing loan amounts and interest rates. See which is more beneficial for you at this time.

Historically low interest rates, the fewest number of competing buyers you will face during the year, a record number of homes for sale, the time of year homesellers are most willing to negotiate, and the majority of players are out of the market. What more could a buyer want?

One final piece of advice, hire a reputable buyer agent that knows how to negotiate, knows where the best resale properties are located, and knows the home values for the area. A good buyers agent will be worth their weight in gold to you, now and in the future.

Deciding to wait to buy a home will cost you the opportunity to shop during the most favorable time of year for you. When Spring arrives, more buyers will be in the market, which drives up prices, and removes the incentives for sellers to be flexible.