How To Buy A House For Less
Time is Money
They say time is money. And if you want to know how to buy a house for less, new research suggests that your timing is perfect.
Curious what time of year yields the best bargains on homes for sale? It’s right now, says a new ATTOM Data Solutions report. February and March rank as the first and third best months to claim the biggest discounts. January places second. The report reveals that homes in February sell at a price per square foot. That’s 6.1 percent less than the rest of the year, on average.
Unpublished data provided by ATTOM Data Solutions show that seven of the top 10 days of the year with the largest discounts fall in February, too. February 7, 4, 5, 12, 11, 6, and 3, respectively.
These seven days produce a discount of between 12.1 and 9.7 percent. The median sales price in February is only $168,000 versus $180,980 for all months, on average. Yes, February is well underway and remains the year’s shortest month. And January is gone when an average discount of 5.6 percent could have been had.
But don’t panic: nice deals can be had in March, as well.
In fact, homes sold in March tend to sell at a price-per-square-foot discount of 3.6 percent. This compares to the rest of the year, on average. The best days in March to score the biggest discounts are 5th, 6th, 13th, 12th, and 4th. This is when prices reduce between 9.6 and 7.4 percent.
March’s median sales price is a mere $169,900.
In other words, get an early start. January, February, and March are the months in which the median price per square foot is the lowest of the year.
“Also, not every month or day is equal when it comes to buying and selling. Both buyers and sellers should keep this in mind when deciding when to buy or list a home,” says Daren Blomquist. Blomquist is the Senior Vice President for ATTOM Data Solutions.
Blomquist says February and March yield the best deals. There’s less competition from other buyers during these months. What’re more, motivated sellers — not wanting to wait until spring or summer to sell.
These factors combine to help drive down prices and give buyers more of an advantage.
But beyond these seasonal factors, there are other conditions that make the second and third months of this year buyer-friendly.
First, the recent uptick in interest rates has priced some potential buyers out of the market. Second, uncertainty currently exists about the real estate market and overall economy, as the new administration takes over.
Third, “We typically see an uptick in the distressed share of sales seasonally early in the year,” says Blomquist. “After the holidays are over, banks – much more so than other buyers – are interested in unloading their inventory of distressed properties quickly. This provides a higher share of discounted properties on the market during this time of year.”
“In this strong seller’s market, buyers need every advantage they can get,” Blomquist notes. “Going against the grain to buy when few others are buying is one way to gain at least a slight advantage.”
To land the best bargains this late winter and early spring, you’ll need to hustle. Beat the spring crowd by hunting for homes early and making an offer somewhat quickly – after you’ve done your homework, that is. And tough out the elements, despite weather challenges that occur this time of year.
“Also, be willing to consider distressed sales. That could mean going to a foreclosure auction, which is often called a trustee’s sale or sheriff’s sale,” says Blomquist. “This may seem intimidating, as you are typically bidding against real estate investors, but it can be done.”
Lastly, look at bank-owned properties that may not be in mint condition, but which may sell at discounted prices, he suggests.
If you’re wondering how to buy a house in the wintry months, be happy that the mortgage market is also still cool. Current mortgage rates are still low — yet another reason to buy before the weather and the competition for homes heats up.
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