For many buyers, winter may be a time to take a break from house hunting and enjoy the holidays with friends and family. But savvy investors know a seasonal slow down in the market can give buyers an advantage.
Last year, according to the National Association of Realtors, existing home sales fell 31 percent in January, reflecting that few buyers were out looking in late November and early December. In March, however, sales shot up 41 percent, indicating that buyers rushed back to the market in late January and early February. What does that mean for buyers hoping to take advantage of the seasonal slowdown? Now is the time to buy! It’s a great time for buyers because there are loads of properties on the market with less competition. For the first time in years we’re actually seeing price reductions. Sellers may be getting anxious because their property has been on the market 40, 50 days or more. This summer, that was not the case. 
Multiple Listing Service data shows that in August, 406 of the 980 homes on the market were sold, verses October when only 249 of the 1,324 homes on the market sold.
The summer buying frenzy has taken a toll on buyers and many more are simply burned out. “We competed among multiple offers for more than three months in a row. It was exhausting,” recalls new homeowner Tom Kidman. “I have friends who are waiting until Spring to start up again—they just need a break.” But if buyers can muster the strength to continue, at least they won’t have to compete with as many buyers and just might find a deal.
To prepare buyers for the possibility of a market swing in their favor try following strategies for shopping during the Holidays:
· Talk to your Realtor: Make sure your realtor is not going on vacation. Many agents take advantage of the slow period and plan vacations during the holidays. Good agents will always have an experienced agent covering their clients, so be sure to ask before you put in the offer.
· Look for high DOM: The higher the Days on Market, the more likely Sellers are to negotiate. One indicator of high DOM is a higher than market price. When the price is right, buyers buy. So, if the DOM is high, check comparables—the price might be too.
· “As they come” offers: This means the seller’s agent will accept offers anytime, as opposed to a set date. Offer dates, popular this summer, allowed sellers to review all offers at once, therefore driving up competition among buyers. Now, many agents with offer dates are finding themselves empty handed. So, be sure to ask if the offers are “as they come” and apply a short timeframe for the seller to review the offer. This allows you get in quick with less opportunity for other offers to compete with yours.
· Under asking, but no low ball: Sellers who put their home on the market during the seasonal low usually have a good reason. I like to call these “life happens” reasons like a job transfer or a new baby. Because these sellers are highly motivated, buyers might win with a under asking offer. Be prepared for a counter offer from the seller to raise the asking price or shorten the escrow time period. Being open to negotiation will help your chances. But, don’t low ball or you might find insulting the seller just knocked you out of the running.
With New Year’s resolutions stacking up, home ownership should be one to mark off your list early!
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