The holidays can be a great time to buy property – sellers are motivated and the crowds of buyers who would have been your competition just a few weeks earlier have disappeared from the market.
You can pick up a great property in this environment if you know what you want and have conducted research to understand the price trends in your target neighborhoods.
If you’re in the market at this time of year, it’s fair to assume you’ll be a serious buyer and ready to do a deal.
Perhaps you want to make a fresh start for the New Year. Maybe you’ll need to settle into the new home and prepare the kids for their new school at the beginning of the semester. Whatever your reasons, it’s likely the sales agent and their client are going to assume you’re ready to go.
So, you’ll need to play a tactical game or risk paying too much.
Firstly, sellers may be just as keen as you to strike a deal. A fresh start in the New Year appeals to them, too.
As an experienced real estate agent locally, I’ve learned the best strategy for a buyer at this time of year is to have their finances ready to go. If you waste a week or more trying to get your money lined up, someone else is sure to seal the deal.
Here are a handful of tips you can use to negotiate a fair price.
- Research the local market and understand not just the price trends across the year but also how prices typically perform over the holiday season. As your agent, I can share this data with you.
- Find out the seller’s motivation. Asking why they want to sell is not unreasonable, and the question can be posed in a friendly manner. The answer will give you valuable insight on whether they need a quick deal or can hold out for their asking price. If they’ve got a new job, or the sale is due to a divorce, you’ll know the clock is ticking for them – and that’s good news for you.
- Be careful with what you reveal – the seller or their agent will likely ask you a similar question. Your response will give clues about how they should negotiate with you. But don’t fob them off with, “just looking”. No one does that in real estate when the holidays are on the horizon.
- Don’t make a low bid because you think the market is dead. You risk insulting the seller and their agent, and nothing will cut you out of a deal quicker than that.
- But don’t go with your highest bid first, either. Start to negotiate at the lower end of price trends you learned from your research. Go in just high enough to get the ball rolling.
- Be ready with your cash. Deals tend to be done quickly, as buyers and sellers want to move on with their lives. If there’s someone else expressing interest, you’ll need to move swiftly.