What is the Best Time of Year to Buy a House
Buying a house is one of the largest investments that you can make. Not only is it a large amount of money, but it is a huge time commitment. For most people, they are buying a house they plan to live in for a while and then sell and make money off the sale. For a typical house buyer, they plan to stay in this house for a length of time.
A house is something most people think about before making the purchase. They want to make sure they can afford the house. They also want to make sure that they are getting the best deal that they can. When is the right time to buy a house? Continue reading to find out.
So, You Want To Buy A House...
When you are looking to buy a house, you may have a lot of concerns about paying that much money for something. It can feel scary to tie yourself to something for that long. The housing market does often make a difference when you want to buy a house. Typically, when there are a lot of houses for sale, the prices are lower. This is a time when the buyer has the upper hand because there are so many options. Sellers have to be competitive with the pricing. When it is a sellers’ market, there are less houses available and the prices are usually much higher.
However, that may not be the only factor that makes a difference for you. You may have personal reasons that determine the best time of year to buy a house. You may need to move for a new job, or you may have to find a new place to live immediately which forces you to find a new house. If you do not have an immediate need for a house and you can wait for the perfect one at the best price, then the time of year make a difference for you.
Is The Winter Time Too Cold To Buy A House?
The are many experts that say that winter is the best time of year to buy a house. The houses are usually lower priced during the colder months. Sellers want to sell their houses, which makes it more advantageous for a buyer. Many sellers do not attempt to sell between Thanksgiving and New Years because people are often distracted with the holidays and are not looking to make a big purchase. If a house is listed for sale at this time, they usually want to sell fast.
You can often find additional bonuses added to the sale like an appliance. Due to the slower sale of houses, you can usually negotiate closing costs and any commissions associated with the purchase of the house. You should keep in mind that the cost of the house is usually lower, but so is the amount of houses for sale. It may not be easy to find the perfect house for you which less available. Depending on where you are looking for a house, the winter weather may be challenging, but it also gives you an idea of what to expect.
Since there is less light during this time of year, it is hard to see how much natural light comes into the house. Things associated with the sale of the house may move much faster, such as processing the loan, inspections, and the date for closing because there are not many home purchases happening at this time.
Should You Buy In The Summer?
If you consider the number of houses sold to be an indicator of the best time of year to buy a house, then summer may be one of the perfect times. If you want to buy a house in the summer, you have to make quick decisions, especially in the early part of summer. There is a huge buying market so if you see a house you want, you have to make an offer.
Waiting until the end of the summer may give you the opportunity to be more thoughtful in your decisions because there tends to be less competition. During this time of year, sellers want serious offers from buyers who plan to follow through. The buyer that seems most interested and committed is the one the seller may pick.
This is a great time to buy a new house and sell your existing one all at the same time. August is the best time of the summer to buy because prices start to decrease. Do not shy away from a house that has been on the market all summer. There could be reasons not related to the actual house that caused it to sit.
Does The Crisp Fall Air Make A Difference?
Fall may be another on of the best time of year to buy a house if you do not have a large amount of money with which to play. This is the time when sellers begin to lower their price and really want to sell their house. There are less houses on the market because some sellers do not want to attempt to sell their house during the holiday season. This gives a buyer better leverage to negotiate. There also tends to be less buyers in the fall because many people, especially if they have children, want to be in their new home before the start of school. October is a great time to get a good deal on a new house. Sellers begin to get nervous that they may not be able to sell and are willing to lower the price of their house. You may also find that your real estate agent has more time and gives you more attention.
Can Spring Bring New Life To The Housing Market?
Many consider Spring the absolute best time of year to buy a house. The weather is beginning to get warmer. School is getting close to the end. Everything is starting to bloom again, which gives people a new outlook. There are many options on the market which gives you a lot of choice. There is usually a lot of competition for houses because many people are looking.
Houses tend to show better during this time of year. The flowers and trees around the house are blooming and the grass is green. Everything looks better in the sunshine. There is usually a higher demand because buyers have been waiting through the winter for sellers to list their houses. You may end up spending a little more if you buy a house in the spring. You also have to be prepared to make a quick offer when you see a house you want. There is usually at least one other person making an offer, too.
Steps To Buying A House
Once you have determined the best time of year to buy a house for you, there are some steps you have to take to get there:
You have to understand how much money you have to spend on a house. Your budget is key here. You have to be able to have enough money for a down payment.
You have to secure a mortgage and make sure you can make the mortgage payments. This may seem like a no brainer, but many people get caught up in the excitement of buying the perfect house, they forget to make sure they can actually afford it.
While you want to get the right house for you, you also want to get the right mortgage for you. You work with a realtor to help you find the perfect house. You may want to consider working with a mortgage broker to find the perfect mortgage. Or you can take a look below and find the mortgage option that works best for you.
Once you have secured the mortgage, you look for your house and make an offer. Then the house is inspected and appraised and you go to closing.
Advantages of Buying A House
For many people, buying a house is one of the most important steps they will take. It makes them feel as though they are really an adult and have taken a huge step. There are some other advantages to buying a house in addition to the feeling of adulthood that it gives you. When you purchase a home, you gain equity in the house over time. Most of the time, the value of houses increases over time. As that is happening, you also pay down the mortgage and the house begins to become worth more than you owe and you can sell the house and get that money. There is a lot of stability that comes with owning your own home. If you rent, the price you pay to rent most likely goes up every year, but that does not happen when you have a mortgage. Your mortgage is set unless you have a mortgage that is changeable.
Disadvantages of Buying A House
There are some downsides to buying a house and most of them have to do with cost. Buying a house is a huge investment. It requires you to make large monthly payments for up to 30 years, but you must also have a down payment. Most lenders require you to have about 20 percent of the amount you want to borrow. That is a difficult sum for many to come up with to purchase a house. If you want to purchase a house that costs $300,000, you must have $60,000 to put down. Unless you are currently living rent-free somewhere, you have to pay to live and save money for a house. Once you have secured a down payment and are in your new house, all of the expenses are your responsibility. Anything that goes wrong in the house, you have to pay to have it fixed. That can be quite a burden on someone, especially if money is limited.
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Other Things To Consider
It is exciting to consider buying your first home. Most often no one thinks about the costs after they are in the house. Usually, a lot of effort is spent thinking about the down payment and the monthly mortgage. Living in a house costs money, also. Those costs tend to be overlooked. In addition to regular maintenance items, such as lawn care and regular household maintenance. You have to pay for trash removal and sewer bills.
These all may be things you did not have to pay before buying a home and items you may not even consider. A house requires regular attention, too, such as replacing filters and maintenance and cleaning for HVAC systems. These are all important items to take care of. You also have the cost of upkeep on your house. You do not want to have the messy house in the neighborhood. You do not want to be the one that does not have some type of landscaping or seasonal flowers. This all takes time and money that you did not have to spend prior to owning a home.
Conclusion
Purchasing a home is the most emotional purchase you will make. It is a large purchase that can feel overwhelming and exhilarating all at the same time. If you are smart about it and make sure you have the money you need before you purchase your home, you should be in good shape.
Something unexpected is always going to happen, so if you can, you should have money saved specifically for household items. This can help you be somewhat prepared for the expenses that you did not consider and some you did not even know about until you purchased your home.