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Winter might not seem like the most ideal time to sell a home. Typically, spring or summer are the more popular choices. In these seasons, the weather is usually better and there is often more inventory. Families with children prefer to move and settle before the start of a new school year. However, there can still be many advantages to selling in the winter. Let’s explore a few.
Less Competition
Since winter is the least preferred time to sell, there may be less competition. If a seller lists their home while fewer homes are also listed, they will have a better chance of selling it. This is because there will be less options for current buyers.
Currently, the housing market is experiencing overall low inventory, giving sellers an advantage during every season. However, since the number of available homes thins even more in the winter, those available will not have to work as hard to stand out. This does not mean you should make your home less desirable. Rather the contrary. Less competition increases the chance that a more desirable home will sell quicker.
Motivated Buyers
Winter is often dominated by various holidays or colder weather. Therefore, the buyers who are seeking a home during the winter are often more motivated. You won’t frequently find buyers dabbling in a new real estate adventure during one of the busiest times of the year if they aren’t serious. Sometimes buyers during this time are relocating for work or experiencing a life change. Regardless of the circumstance, winter buyers more often have a sense of urgency that you won’t find during other seasons of the year.
In addition to being seriously invested, winter buyers are often more prepared. A more prepared buyer can mean a smoother real estate transaction. They likely know what they are looking for and have made any necessary preparations before looking. Easy peasy!
Negotiating Power
Less competition and motivated buyers give sellers more negotiating power. Those seeking a home in the winter might be willing to pay a higher price for a home to secure it. If a home is already priced competitively and in good condition, a buyer will be less likely to make a low-end offer. If they do, and there are fewer homes listed overall, they run the risk of losing out on a good home. This gives sellers an advantage. Not only can they expect a better offer initially, but there is an opportunity to negotiate a better sale overall. If sellers try to negotiate in a more saturated market, they may not see as much success. Buyers might move on to another property. Winter might see cooler temperatures, but sellers might see a hot opportunity.
Potential Tax Advantages
Buyers who close on a home by the end of the year might be privy to potential tax advantages. For example, mortgage interest, real estate taxes and PMI are all tax-deductible. Those who want to take advantage of the tax advantages might feel more encouraged to purchase a home by year’s end. While technically, winter doesn’t start until the end of December, closing on a home by the new year still falls during the winter, so we are going to leave it here as an advantage of selling. Potential tax advantages contribute to a buyer’s motivation and a better potential situation for sellers.
Flexibility
Searching for a Home
In the past, selling a home in winter might have hindered buyers due to the more hands-on process. Without the internet, buying a home required more time and legwork. Spending the extra time and doing the extra work during the holidays and winter months might have been discouraging. However, the Internet has made the homebuying process more efficient, and has given buyers more flexibility. Using the MLS or preferred home search tool, buyers can scope out potential homes from their phone or computer. Doing so can help quickly narrow down and find homes that meet the buyers’ needs and/or wants. This flexibility can make searching for a home in the winter faster and easier.
Time Off for the Holidays
Not only does the winter give a buyer more flexibility in their home search, but most people have time off for the holidays, giving them more opportunity to search for homes. The flexibility of searching during a few vacation days can make the homebuying process seem less stressful. This is an advantage for sellers because buyers can view their homes without taking off work or rushing before or after. Also, sellers may have time off for the holidays where there is less pressure for them to prepare for house showings also.
Still not convinced? According to Redfin, winter listings are 9% likelier to sell, sell for 1.2% more, and are on the market, on average, for 7 fewer days. If winter is not an ideal time for you to sell, no worries. There are other wonderful times to sell that have benefits also. If you find yourself in the circumstance of needing to sell during winter months, or just want to, you should feel confident that there are advantages to selling in the winter. If you are looking for a real estate agent to partner with on a winter sale, contact me here. I’m happy to help!
