Spring is generally the most popular time of year to sell a house, with hordes of buyers looking to move into a new place before the school year begins. But if you decide to sell your home during the winter, experts say you could reap a reward in cold, hard cash.
“I have personally had my best months in real estate during the holiday season, so the idea that the markets are very tough to sell in the winter might be a myth,” says Emil Hartoonian, managing partner of The Agency in Beverly Hills, CA.
He's not the only one who believes selling in the winter can make you a real estate winner. Read on for the top reasons why you should consider unloading when the temperatures drop.
1. Low inventory = less competition
Since spring is the most popular home-selling season, the housing market is ultra-crowded with options at that time of year. And if you paid attention during Econ 101, you understand the law of supply and demand.
“Most sellers still think they need to sell in the spring, but that means there is more competition for buyers' attention,” says Matt Van Winkle, founder of Re/Max Northwest in Seattle.
But in the winter, there are fewer homes for sale. That competition over low inventory can make winter an ideal time to sell your home.
“In the Atlanta market, January is one of the strongest months for homes to go under contract,” says Ally May of Atlanta Fine Homes Sotheby's.
2. You get to show your home’s winter-readiness
Selling in the winter also gives you the opportunity to show that a home is designed to handle the harsh elements.
“Sellers in places like Lake Tahoe can show off features like a south-facing driveway to speed up snow melting, how snow will fall off of a roof, a short driveway that will minimize shoveling or plowing, heat tape on the north side of the roof to avoid snow accumulation, and how recently the roof and furnace have been replaced," says Sandy Soli, regional manager at Engel & Völkers in Lake Tahoe, NV.
Plus, during winter months, homes with features like fireplaces and hot tubs are certainly more appealing.
3. New parents may be looking to upgrade
The baby boom in September may lead to more buyers later in the year. According to data from the Center for Health Statistics and the Social Security Administration, there are more birthdays in the month of September than any other time of the year. Therefore, there's likely to be a crop of growing families looking to buy a larger house.
"Once baby is home and settled, these parents may want to start the year in a new, and more spacious, family home,” according to Melissa Temple, real estate adviser and partner at Engel & Völkers in Aspen, CO.
4. Winter brings out the serious buyers
News flash: Not everyone looking at houses intends to make a purchase. Some people are contemplating moving and may just want to see what's on the market. Since more homes tend to go on the market in spring and fall, this is also when window shoppers are likely to be out looking.
However, these looky-loos tend to be scarce during winter months, according to Jennifer Baldinger, licensed associate real estate broker at Julia B. Fee Sotheby’s International Realty in Scarsdale, NY.
"When I have buyers looking for homes in January and February, they’re real buyers looking to make a purchase—especially if it’s a great house. They don't want to take the chance of waiting until spring and losing out on the home,” Baldinger says.
“There may be less people at these open houses, but I would rather have 10 real buyers come through than 20 people who are just curious,” she says.
5. Year-end financial bonuses and payouts
As a seller, year-end performance reviews could mean that more people have money to spend on a home.
“End-of-year financial bonuses or workers retiring with large payouts could mean opportunities for these buyers to upgrade their living situations or for first-time buyers to enter the housing market,” according to Temple.
6. Corporate relocation
You could also encounter buyers who are relocating for a job.
“One of the biggest months for corporate relocation is January/February, so those buyers, who need to move quickly, are out in full force looking for new homes,” Baldinger says.
Relocators typically have a limited amount of time to uproot their families and, as a result, don't have the luxury of spending a lot of time looking at properties. The kids need to get settled into school, and dealing with selling their old home can add another level of urgency and stress. So it's likely that once they find a home that meets their requirements, these buyers will be ready to sign on the dotted line.