In 2008 and 2009 I was working with one of the best clients I have had in my real estate career. In the summer of 2008 we looked at a large number of residences on acreage with water features and were not able to find the right property. We looked at many listings but most seemed over-priced, or at least they were not what we defined as “good buys”. At the time the real estate market in Southwest Colorado was depressed, in the early stages of the great recession. Still, because we were looking for premium residences with premium features, most Sellers were quite proud of their properties and hopeful that with the high level of buyer traffic during the summer months, if they held out, they would get their price.
At the end of the summer we decided the best approach would be to wait things out. In February we resumed our search. We found many Sellers with greater motivation and a good number willing to look at offers substantially below their listing prices. After ten days of looking we found the right combination of properties and were able to successfully negotiate good prices on each of the three properties he purchased.
Bob is the most financially successful individual I have had the privilege of working with. He started with nothing and built a company which he eventually took public and subsequently sold, generating significant wealth for himself and his shareholders. Because of his strong management and financial research skills, I knew I would learn much working with him, which I did. Bob accurately gauged his purchasing power in the “off-season” would be much greater and the competition among Buyers much lower. I have shared my “Bob Story” with many of my Buyers, suggesting that if they were serious about obtaining a really good value, they should not put off the buying decision until spring or summer. February and March are great months to buy real estate in the mountains.
According to the National Association of Realtors, January and February home prices are 8.45% lower than July and August, two of the most popular homebuying months. The NAR Chief Economist does not expect this spread to remain as great going forward, but still, the savings can be substantial.
Another reason to buy now is that mortgage interest rates are expected to rise further during 2017, possibly by as much as a half a percent. On a loan of $300,000, a half point rise in rates would increase the monthly payment by $88, over 30 years that amounts to an additional $31,680.
Yes, here in the mountains of Southwest Colorado a lot of Sellers will take their homes off the market for the winter, which would make the available inventory look more scarce than it really is. I can research which properties that fit your criteria were taken off the market and whether those Sellers are open to having you look at their home ahead of putting it back in the MLS. You would be surprised at how much further your money goes when buying real estate ahead of the strong selling season.
