If you’re looking to save on a new home, and didn’t find what you were looking for this summer, you could take advantage of the winter months to save.
The holiday season can be one of the most stressful times of the year, and nobody wants to be selling or buying a home. There are fewer new listings than any other time of the year, and time spent doing showings or viewings is time away from loved ones.
A first-time buyer that prepares for the season in advance, however, can enter the homeownership market with poise. Sellers are often in a hurry to make a deal, and may consider additional concessions to move the property. You also have more opportunities to negotiate, since there is less competition.
All told, I’ve seen people save up to $40,000 off list price by waiting until December to buy. For a new homeowner, that can be the difference-maker you need to get the home you want.
Simply buying in December isn’t alone enough to save this money, though. You need to be able to make sure the home itself stands up to the value on paper, and the negotiation skills to get a good deal from your bank and the seller. Here are the top three ways a first-time homeowner can prepare to get a great deal during the holidays.
1. Improve Your Loan Rate
If you’re buying a new home, you’re likely getting a loan from a bank in order to do so. If you began looking for a home in the summer, and have been living frugally since, you may be in a position to improve on your interest rate. You can use the time between now and winter to clean up any items that could be outstanding on your credit report, and pay off existing debts. You may benefit more from increasing the size of your down payment.
Getting a better loan rate can ensure that more of the money you save on the home stays in your pocket. In any case, talk to your bank or lender about the best way to improve your repayment terms.
2. Get Ready to Inspect the Home
The summer is a pleasant time to view homes. You get a good look at the entire property, and a clear view of any damage. However, inspecting a home during the winter is another beast. Snow and ice can cover up issues with the roof, foundation, driveway, steps and other external features.
A home inspector can dig deeper to see if there are any underlying issues in the home. However, they cannot see everything, and they can’t say for certain if the home has been valued properly or not.
Your real estate agent should be equipped to help fill in some of this knowledge. A smart agent will have tools such as infrared cameras and moisture detection units to find signs that the home is listed at a higher value than it is worth.
There are a few things you can check yourself. A home that is losing too much heat can impact your comfort level during the winter months, and cause you to spend a bundle on heating. Long icicles hanging from the roof is a telltale clue that your home could have heat problems.
The next thing to check would be the windows. If the air around them is frigid, you may need to replace them with high-efficiency windows later. You can also look for animal droppings in the basement or attic. Not only does this show proof of an infestation, it also hints that there are problems in the home’s foundation. Knowing what to look for can keep you on the path to find the right home.
3. Choose an Agent With Proven Home Evaluation & Negotiation Skills
Because there are fewer buyers on the market, that means less competition, and you’ll have more time to negotiate. This is where your agent really has the chance to shine. A good one can evaluate the situation and home to put out a strong first offer, which can be the most important component of your negotiation. This will allow you to set a standard for what you’re willing to pay, and ensure any diversion from your offer comes in trade for other concessions.
The Sylvain Bourgon Real Estate Group Can Help
Buying your first home is a rite of passage. It’s the home we often cherish the most in our lives, and the one we raise children or become newlyweds in. It can also be a way to improve your net worth, if you do it properly.
The Sylvain Bourgon Real Estate Group works with its clients to find the right home. We have access to the most reliable home inspectors in the Ottawa area, and can help you buy a home below list value during the winter months.
We take responsibility for the happiness of our customers. For more information about how we can help you find the right home for you or your family, contact us at info@buyandsellottawa.ca.