Buying a House in the Winter Can Save You Money

When buying a house, timing matters. The cost per square foot varies throughout the year. According to a recent LendingTree study, January is the month with the lowest prices per square foot, and February comes in second. If you’re planning to buy a new home this year, acting soon can potentially save you tens of thousands of dollars.

You’ll Have Less Competition in the Winter

People who are searching for a house typically prefer to shop when they don’t have to worry about bad weather or work around holiday plans. For parents, summer is the ideal time to move because their kids won’t have to switch schools in the middle of the academic year. If you shop for a new house in the winter, you’ll have fewer buyers to compete with and will be less likely to find yourself in a bidding war.

Sellers Are Ready to Negotiate

Houses that are listed in the colder months generally take longer to sell than properties that are listed in the spring. During the winter, sellers are often willing to negotiate on price or make other concessions to close a deal.

A Lower Sale Price Can Lead to Additional Savings

Getting a bargain on your new house isn’t the only way that you can save money. If you take out a mortgage through a conventional lender and you put down less than 20%, you’ll have to purchase private mortgage insurance. PMI is meant to protect the lender in case you default. It can add hundreds or thousands of dollars to your annual housing costs.

For many first-time buyers, putting down 20% is difficult or impossible. If you shop for a house in the winter and find a good deal, a 20% down payment can be more affordable. If you meet that threshold, you won’t have to worry about PMI.

You’ll Be Able to See How a House Handles Winter Weather

Having a house inspected is an essential step, but a home inspector can only note problems that are readily apparent. Certain issues, like drafts, might only be noticeable in the winter. If you view a house when it’s cold out and you notice a problem, you can ask the seller to make repairs or lower the price so you can take care of the issue after you move in.

First-Time Buyers Have an Advantage

People who are already homeowners have to sell their current home. They will probably want to list it in the spring, which is peak buying season, and buy a new house around the same time.

As a first-time homebuyer, you have more flexibility. Since you don’t have to offload an existing house, you can shop when prices are typically low.

Learn about the Homebuying Process

Knowing when to buy a house is just one piece of the puzzle. You also need to know how to choose a real estate agent, how to get a mortgage with a competitive interest rate, and how to find a house that you can realistically afford.

You’ll learn about all of that and more in the First-Time Homebuyer Masterclass. It will walk you through each part of the process and point out common mistakes that buyers make. With that information, you’ll be able to find a home that fits your needs and budget.

When you finish the course and pass the final test, you’ll receive a certificate of completion that you can send to a down payment assistance program, housing counseling agency, or lender, if required. Check with your program, agency, or lender to find out if it will cover the cost of the course.

Even if you don’t have to take a homebuyer course, it can still be a smart investment. A house is probably the single largest purchase you’ll ever make. One mistake can set you back thousands of dollars and cause many sleepless nights. By educating yourself first, you can avoid that and set yourself up for success.

Click here to enroll in the First-Time Homebuyer Masterclass.

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