Pros and Cons of House Hunting in Winter vs. Spring (negotiating, mortgage companies)

[CarolinaOnMyMind]

Hi everyone,

Can we discuss what the pros and cons are for house hunting in the winter vs. spring. We'd like to get a house before the $8000 tax credit expires 4/30/10 so there is a sense of urgency. At the same time however ,there may be a higher inventory and better selection of homes in the spring. We would be cutting it close since if we wait too long there may not be enough time to find a house and to wrap everything up in time to take advantage of the tax credit. Another question I have is would we be able to get a better price for a home during the winter months versus in the spring since there may be less competiton during the winter. I also realize that the curb appeal is better in the spring vs. the winter. We'll have to use our imagination. We live in NJ and are looking to move to the Triangle area in NC. What other pros and cons should we consider ? Everyone's thoughts and advice is very welcome. Thanks!

Gary & Cathy

[susanewood]

With the tax credit, you need to be under contract by 4/30, but have, another month or two to close. That's different from the previous tax credit.

[byoak]

This year is not like the rest. Wth the $8000 tax credit for first time buyers and $6500 for people that lived in their houses for five years. I think this winter is going to be very busy. It is already mid January that april 30th deadline is going to be here quick and remember you have to be settled by June 30th to get the credit. If you are looking to buy I wouldn't wait much longer to begin your search. The mortgage companies are going to be swamped as the deadline nears and closing in 30 days will definitely be impossible.

[bigfatturkey]

sometimes with all the snow covering the roof/driveway/yard...you can't really see what's underneath. on the other hand...it's good to see houses during the bad weather to check for moisture/leakages/drafty windows/doors etc. but i think with the first time home owner credit...many people are out shopping now...so u might still get quite some competition for others like you who are also trying to close before the tax credit deadline.

[librarySue]

I am also moving to the triangle. I am only waiting to sell my current home and for the end of the school year.

I would buy ASAP if I were you. The houses down there don't linger on the market.

Are you selling your home or currently renting?

[LauraG at the Shore]

Originally Posted by CarolinaOnMyMind

Hi everyone,

We'd like to get a house before the $8000 tax credit expires 4/30/10 so there is a sense of urgency.

Remember the new tax credit requires you have an executed contract to purchase a home by the end of April. You have until the end of June to complete the closing.

[littlefamily]

If you find a house tomorrow are you ready to write a contract to buy it? If so, why not start looking.

But I would be very cautious that you really understand the market to know what is a good deal. Remember that although you are looking to use the $8000 credit before the deadline, there is going to be much happening in the spring that may make or break the housing market.

That area has held fairly steady in housing values, so that is a positive. But IF the Fed stops buying MBS AND the housing credit goes away, even a modest drop in home prices will wipe out that $8000 credit.

If I were looking the season wouldn't matter so much as what I think the future holds with intervention by the government. I'm waiting for the government to get their hands out before I buy - credit or no credit....

[shellytc]

if i had a home to list, I would list it NOW for the tax credit folks to buy, instead of waiting for the traditional spring time. (and coincidently, our MLS is busy every day with folks listing). With the past tax credit deadline, as we got closer and closer to the deadline, the good homes had gone under contract and it was a feeding frenzy to get under contract.

If you want the best home, my suggestion is to not wait!! start looking now.... and you get the best home, not the left overs : )

shelly

[CarolinaOnMyMind]

Thanks to everyone for all of their responses. One thing I neglected to mention was that we are planning on buying the home in cash. Would this shorten the time needed to close since there would be no mortgage or banks involved? Would this give us some leverage in negotiating the price and closing costs? I'm a newbie to house hunting so pardon this question, but does "under contract" mean that an offer has been made by the buyer and accepted by the seller, but the deal has not yet closed? If we are under contract by 4/30 wouldnt we have enough time to close by the deadline of 6/30 to qualify for the tax credit? Typically how long does it take a buyer to get under contract after an offer for a house has been made? Thanks again!

[ShannonMilligan]

Under contract means a buyer made an offer and the seller accepted. It is now ratified and will go through the procedures needed to close. (During this time you get home inspections, radon inspections, etc.) If you are under contract by April 30 you have time to close.

As for having cash...As I buyer I could care less how you are paying and it woulnd't influence me to sell to you for a lower price. Now it does make the worry less about you securing financing so that is appealing but I personally don't think enough so that you would get that much better of a deal.

As for cutting down time...maybe a little. But you still have to get the title and I would hope you would still require inspections (again like the home inspection, radon, lead based paint if built before 1978, termite inspection, and so forth) I think giving yourself 30 days to close would be good. BUT you have to remember the sellers position-maybe they can't move until 60 days and want a longer closing. Maybe they want a short close and will push for three weeks.
Good luck!