If you’re looking to become a homeowner, and didn’t find what you were looking for this summer, you could take advantage of the winter months to save big on a new home.
The holiday season can be one of the most stressful, and nobody wants to be selling or buying a home during the winter months. 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.
However, a potential new homeowner with the foresight to prepared for the season in advance can save big money. Sellers are often in a hurry to sell and are ready to make concessions to move the property. You also have more opportunity to negotiate, since there is less competition.
All told, I’ve seen people save up to $40,000 off the list price by waiting until December to buy. For a new homeowner, that can be the difference-maker you need to make a profitable entry into homeownership.
However, simply buying in December isn’t alone enough to save this money. You need to be able to make sure the home itself stands up to the value on the paper, and you need 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.
- 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 the interest rate. You can use the time between now and winter to clean up any items that could be outstanding on your credit report. It could be that the best way for you to save money will be to 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 homestays in your pockets. In any case, talk to your bank or lender about the best way to improve your repayment terms.
- 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. Finding a great home inspector can save you money in the long run; they know how 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 spend significant resources 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, but 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.
- Improve Your Negotiation Skills
Because there are fewer buyers on the market, that means less competition, and you’ll have more time to negotiate. Naturally, this is a chance to brush up on your negotiation skills. Although you may have heard that you should never make the first offer, in a home negotiation, that often isn’t true. Often, sellers won’t speak to you until you’ve put in an offer. Naturally, putting out a strong first offer is the most important component of your negotiation.
In order to understand what your offer should be worth, you need to learning as much as you can about the home beforehand. 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.