Black Friday Real Estate Deals
While Black Friday for retail is the Friday before Thanksgiving, the homebuyers’ Black Friday, begins the week of September 22nd, and continues until Thanksgiving. This is the period where buyers can expect to find the best deals, at prices below other seasons of the year. And as we’ll see, the statistics firmly establish this to be the case. Why?
Firstly, the kids have just returned to school and parents are concerned whether little Johnny or Mary are getting on well with the new teacher, assessing the homework load, and determining whether the school is maintaining their high standards.
Secondly, folks are home from their summer vacations, and it’s time to catch up and socialize with old friends. During these autumn months there’s more dining, enjoying cocktails, or attending cultural or sporting events.
Thirdly, beyond catching up with friends, the holiday season is approaching, and most folks are not in a “doing business” state of mind. Rather, a season of partying, revelry, and gift buying sets in as the lead up to Thanksgiving and Christmas.
And as with any industry, when there is less competition on the buying side, prices often decline. It’s the law of markets. Interviewed by Forbes, Daniel Dainard a Seattle-area broker with Heaton Dainard Real Estate, said, “Savvy sellers get aggressive with holiday deals to entice the few buyers actually looking at homes to pull the trigger on one.” Dainard adds that sellers know that a prospective buyer searching for a home during this season are usually serious and not just window shopping. Knowing this, sellers are more apt to give that extra nudge in the form of an added incentive or two.
According to a study by Realtor Magazine of 53 metro areas across the United States, during this season, buyers will have 26% less competition from other buyers, and 6.1% more homes on the market from which to choose. Additionally, about 6% of homes on the market will get a price reduction, averaging about 2.4% lower than the original asking price.
Another key to buying wisely in this season is the ability to move toward a quick closing. Remember, the time period between contract signing and closing can be two months. So, a contract signed in September can result in a closing around Thanksgiving. A contract signed in October might not close until around Christmas time. And just as buyers are hesitant to break up their holiday plans, so are sellers. So, a quick closing offer can serve to further entice a seller to be flexible and generous.
Finally, when we also factor in today’s low mortgage rates, the timing for an autumn purchase makes more and more sense.
Those who can achieve the perfect trifecta of seeking a home during the early autumn months, have the ability to close quickly, and can take advantage of the historically low mortgage rates, stand a good chance of scoring a deal.