Winter may offer relief for pressured homebuyers says RE/MAX

How agents can make the most of the cold season

Winter may offer relief for pressured homebuyers says RE/MAX

For homebuyers who found the spring and summer housing markets a little on the hot side, there could be some relief right now; while for agents, there are some different approaches that can help to close that sale.

According to RE/MAX real estate agents across the US the winter season can offer a break from high prices and fierce competition, especially in markets in colder climates.

"In the Midwest, homes that go under contract in November, December and January usually are offered by highly motivated sellers," explained Jeff LaGrange, Vice President of the RE/MAX Northern Illinois Region. "In spring and summer, purchasers may pay a premium because they compete with many other buyers. Less competition in winter means prices typically don't include that premium, and sellers frequently are more flexible about price and other terms."

In his local market, LaGrange says home sales activity and prices normally peak in June and hit their low point in January and February.

But although the differential between the trough and the peak was 13% in the first half of 2018, that doesn’t mean all homes will drop as winter begins.

"What we find instead is that list prices often are more conservative to start with, and sellers may be more willing to negotiate on price and other terms, especially if they are eager to close the sale. But some of the price difference in winter reflects the fact that homes in the best locations and great condition sell quickly and usually aren't on the market at that time," said LaGrange.

Helping buyers to see the potential
Winter does bring some unique challenges including fewer daylight hours and seeing potential purchases in less flattering conditions, so for agents it means helping them focus on the positives.

“Homes don't have the same curb appeal in winter that they do when everything is blooming in spring," said Corey Barker of RE/MAX Center in Grayslake, Ill. "That's why I try to focus winter buyers on the basic qualities of each home. Does it offer the location, layout and space that they need? How well has it been maintained? It can be a little harder to fall in love with a home in winter, but in a way that makes it easier to evaluate a home's most important qualities."

Take a shovel
Depending on the location, snow and ice can be the real estate agent’s nemesis, especially when evaluating vacant homes.

"These days, more homes than ever are vacant when they go on the market, and you never know what to expect," said Donna Smolak of RE/MAX Vision 212 in Chicago. "Some can be beautifully maintained, but in other cases there can be six-inches of snow in the driveway, the storm door many be frozen shut or the whole home may be winterized with the heat and plumbing out of service," she said. "I always bring a fold-up shovel with me in case a car gets stuck or we want to scrape snow off an outdoor area to check what's underneath."