When is the best time to buy real estate, really?

February 13, 2011

Home Buyers

I’ll let you in on a little secret: Some real estate agents think that real estate is weather-driven. As a manager, I frequently hear from agents that “this is a bad time of year” for real estate because of the cold, ice and snow. Then, in spring, they tell me “this is a bad time of year” for real estate because of the spring thaw, mud, no flowers or trees in full bloom yet, allergies, etc. Along comes summer and guess what: “This is a bad time of year” for real estate because of family vacations, allergies (again!), summer rec programs for the kids, and so on. By August, I’m told, buyers and sellers are focused on getting their kids back to school. Here comes fall and guess what: “This is a bad time of year” for real estate because of high school sports kicking off. And then, well, it’s the holidays.

So, here’s the even bigger secret: HOMES SELL ALL YEAR ‘ROUND!

Not every potential buyer or seller follows the same calendar. In fact, given the above excuses, I’m not sure I could even be convinced to make this my career! According to my calculations I might have a month or two out of 12 to make my living!

So, Buyers, when IS the best time to buy?

Answer: The best time to buy is when you’re ready. We live in Wisconsin. There will always be snow and ice in winter, rain and mud in the spring, heat in the summer, holidays, school activities, etc.

Be realistic: In the summer we want to know how well the home holds heat and how sound the foundation is come the spring thaw. Serious buyers ask serious questions: They want to see the heating and electric bills for the prior 12 months of the home’s occupancy (many utility companies now make some general information available on-line). Buyers want to see the property condition report provided by the sellers. Serious buyers hire a certified home inspector to review the property and assess it’s condition.

Here’s another tip: Ask your insurance agent for a CLUE report* on the property to see if there have been claims filed for water intrusion. This is a particularly good strategy when purchasing a foreclosure property. (There may be a fee for such a report.)

By the way, no matter how bad the economy was, there were always lenders approving buyers for home mortgages.

No more excuses! Get out there and get looking!

* C.L.U.E. (Comprehensive Loss Underwriting Exchange) is a claims history database created by ChoicePoint that enables insurance companies to access consumer claims information when they are underwriting or rating an insurance policy. (information courtesy of http://oci.wi.gov/pub_list/pi-207.htm , from the Wisconsin Office of the Commissioner of Insurance).