Imagine if you will. During Thanksgiving dinner, you let your very successful uncle know that you were planning to go home shopping after the first of the year and asked him if he had any advice. Your uncle, who owns several properties, suggested that you get started right away. He recommended buying between Thanksgiving and New Year’s because that is when you find the best deals. You never considered buying a house during the holidays. You figured that nobody would want to show their house then, figured the Realtors® would be taking time off, and you did not want to interrupt anybody’s holiday plans. Is it good to buy a home during the holiday season?
I’ll explain.
Is It Good To Buy a Home During the Holiday Season?
The short answer is that the holiday season can be a great time to buy a property, and there are many bargains to be had. We have talked about selling during the holidays. Here, we will focus on buying to help you understand the dynamics involved so that you can determine if buying during the holiday season is the right time for you.
The Pros and Cons of Buying a Property During the Holiday Season
When looking at buying a property during the holiday season, it helps to start with the disadvantages to give you a better understanding of the advantages you can receive when making a holiday real estate purchase.
The Cons of Buying a Property During the Holidays
Fewer Properties for Sale
There are fewer properties on the market during the holiday season for buyers to choose from. There are fewer buyers out there, so fewer properties go on the market. Plus, most people don’t want to deal with people touring through their home during the holidays. With fewer properties to choose from, it may be harder to find a property that’s right for you.
Holiday Delays
When you do get a property in escrow during the holidays, there are holiday delays. Banks, county recorder offices, and escrow companies are closed on Thanksgiving, Christmas, and New Year's. It might not sound like a big deal, but the delays can be frustrating, especially when you have deadlines.
Agents Taking Off
Many agents are gone during the holidays. It is traditionally the slowest time of year, so many agents take time off during the holiday season. This can be the agent you trust to represent you as a buyer or even the listing agent. You may also have a buyer’s broker agreement with an agent who is not around for the holidays.
Lack of Service Providers
It's not just agents who take off during the holidays. A real estate transaction takes a lot of people, including lenders, appraisers, loan processors, escrow officers, home inspectors, termite inspectors, handymen, title officers, contractors, and all the support staff. Less help can mean more delays, and even using people who are not your first choice.
Other Things To Do
There are so many other things to do during the holidays that it is hard to make the time to focus on finding a home or an investment property. People go gift shopping, attend holiday parties, travel, and spend time with family during the holidays. You might not have time.
The Pros of Buying During the Holidays
Good Deals
The biggest benefit of buying real estate during the holiday season is that it is that there are a lot of good deals. Savvy real estate investors look for bargains between Thanksgiving and New Year’s. They consider the holidays the best time of year to buy real estate. There is a lot less activity during this time of year, and there are many good buys out there for people willing to do the work.
Motivated Sellers
There are bargains to be found during the holidays because the sellers are motivated. If you think about it, people with property on the market during this slow, inconvenient time of year are doing so because they are motivated to sell. They may have to close by the end of the year for tax reasons. They may be relocating for work and need to sell to buy their next home. They may have overpriced their home in the summer and are ready to make a deal. They may just need the money.
Time off To Shop
One nice thing about buying during the holiday season is that you may have some time off work to look at property. We can often be so busy during the year in our routine that we never slow down enough to shop for a house. You can take some of that time off work for the holidays to find a new home or a terrific investment property.
Family Conversations
Families spend time together during the holidays, which can be the perfect setting to discuss real estate. Let’s face it, many real estate purchases are done by pooling family resources. This can include everything from the gifting of down payments to cosigning loans, all the way to formal partnership agreements.
Great Gift
As funny as it may sound, a new home can be a pretty good holiday gift. Even if it is not a surprise, it is hard to beat a new house. Real estate can be both practical and impactful. The holidays are the perfect time for those who have the discipline and resources to buy a piece of real estate every year. It’s also a terrific time to get a new home.
Look at It This Way
Buying real estate during the holidays is kind of like buying a new jacket at the department store in March. There may be less to choose from, but if you find one you like, you can get a good deal. If you really like it, you will be happy for years to come. If the jacket does not fit, you should probably wait until the new styles arrive.
Now that you better understand the dynamics of buying in the holiday market, you can compare the pluses and minuses to determine if the time is right for you. You will also have a better perspective to evaluate properties and negotiate a deal.
Holiday sellers tend to be serious, not desperate. If something seems too good to be true, it probably is. Seek the help of a real estate professional and check with your trusted tax advisor. The only way to make money in real estate is to own some.
Bottom Line
The time between Thanksgiving and New Year's can be a great time to buy a home or an investment property. With an understanding of the disadvantages, you can better see the advantages of buying during this traditionally slow time of year.
Disadvantages Include
- Fewer properties for sale: Fewer properties for sale give buyers fewer choices.
- Holiday delays: Bank and government holidays can slow closings, which can become very frustrating.
- Agents taking off: Many agents take time off during the holidays, which can be hard on buyers, especially if they have a buyer broker commitment.
- Lack of service providers: People in lending, title, escrow, contractors, and inspectors are also often of during the holidays, which can create delays and leave you working with people who are not your first choice.
- Other things to do: The holidays are a busy time of year, placing other demands on your time besides real estate.
Advantages Include
- Good deals: The holiday season is considered by most to be the best time of year to get a good real estate deal.
- Motivated sellers: People with properties on the market during this slow time of year tend to be serious and motivated to sell.
- Time off to shop: You may have extra time off work to look at properties and deal with an escrow.
- Family conversations: Many real estate purchases are done by families pooling resources, and the holidays can be the perfect time for such discussions.
- Great gift: Real estate can be a practical and impactful gift. Just saying.
Think of the holiday real estate market as a sale rack of clothing that is about to go out of season. There is less to choose from, but the prices are good. You can get a great deal; just make sure it fits!
For Real Estate Advice
Thank you, and we hope that you found this helpful and informative. If you are looking for a real estate broker to guide you through the sales process or a reliable property management company to help you handle a rental property in Long Beach, Los Angeles, or Orange County, California, or if you are just considering it and have a few questions about real estate, contact the Mike Dunfee Group today! We are happy to help.
Dunfee Real Estate Services, Inc. DRE # 02026232
