Many people believe that property market sales slowdown over the Christmas and new year period, but the reality is that this time of the year makes for the perfect time to buy and to save.
Often November and December are the two busiest months of the year for home sales. Real estate agents suggest that buying just before Christmas and New Year may allow a buyer to snag a bargain due to home owners wishing to move-on sooner, rather than later. This is due to the fact that often a new year represents a fresh start or beginning, and for some this means finalising any loose-ends in the closing weeks of a year.
Some Vendors are Seeking to Sell Sooner
With Christmas just around the corner, many vendors are getting keen to sell their home. Some may even be willing to reduce their price so that they can move sooner.
For buyers, this represents an ideal time to see whats on the market. If you find a home you like and you want to make an offer, then go in under the asking price. Dont be afraid to negotiate. You may save yourself thousands.
Realtors are also suggesting that the property markets pricing correction is weighing heavily on many vendors. Vendors are realising that if they had of sold their property 6 months ago that they could have fetched a much higher price.
For some vendors this pricing adjustment has made them a little fearful of what they will get in terms of pricing for their property, if they wait, so many are now more open to price negotiation. Whereas 12 months ago, many vendors would have waited until the new year rolled around and took their chances at achieving their asking price, due to the market being hot.
Confident Buyers Should Buy Now
Real estate agents say that now is the right time for confident buyers to push the limits. But, when negotiating its important for you to also consider settlement times and not just the cost of a property.
Settlement usually takes between four to six weeks, which means many home buyers who buy within the next two weeks will be looking to move in at the end of January or in early February. Some vendors, however, may be keen to settle earlier. Lets look at how you can effectively buy over Christmas and possibly save yourself thousands.
When negotiating, remember to be flexible so that you also meet the vendors needs By considering the vendors needs, you may be able to get an even better price. Why? Well we all like to feel that our needs are being considered and that were not being taken advantage of. So if youre too demanding and abrupt, then its easy for a vendor to say no to your offer because they may not feel that youre the right person to buy their property.
Not all markets and properties are the same, neither are vendors Treat each market, property and vendor individually and always go with your gut feeling when making an offer. By going in at thousands under an asking price and your buying limit, you leave yourself with room to negotiate.
Reduce your offer by 10 percent, if a vendor wants a quick settlement Some vendors may like to settle before Christmas or just after, so they may be willing to take $20,000 or $30,000 less to make their wish a reality.
New stock typically comes on to the market in the new year Vendors are very aware that more property typically comes onto the market in the new year, so they will be aware that buyers will be more interested in the new stock, rather than their home that has been on the market for longer. This means that a vendor may be keener to sell their property now, rather than later.
Real estate agents will present offers – Many real estate agents will be looking to sell their listings before Christmas, so while they typically work for a vendor and want them to get the best price, they are also willing to present offers. So dont think that you can only offer an asking price to be considered for a property.
Less competition, means more negotiation power Buyer competition tends to wane around Christmas, as many buyers become occupied with family and friends. Some buyers even decide to stop looking until the new year due to festivities. This is when you can get yourself a real bargain because you have far less competition than you usually would.
Of course, its important to remember that when you make an offer that you put subject to finance in your conditions of buying. This way if you cannot get finance, due to unforeseen circumstances, you dont have to follow through with the contract.
Are you looking to buy a property before Christmas? If you said YES, then contact eChoice, we can help YOU find the right home loan and save.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!