VIDEO – WHEN IS THE BEST TIME TO BUY A HOUSE?
In this episode of The Real Estate Breakdown, Pey Behin discusses when is the best time to buy a house? Washington DC is currently in a seller’s market and has been for years. What does that mean for buyers? When is the best time to buy a house in a seller’s market?
Here’s some basic real estate advice for buyers and first-time homebuyers in areas with low inventory and house it affects you.
“Thank you for watching. My name is Pey Behin. This is the Real Estate Breakdown. The question I get from almost every buyer is, when is the best time to buy a home in D.C.? Did you think it was spring? I bet you thought it was spring. We’re going to answer this after … well, this.
Okay. So when is the best time to buy? The short answer is whenever you’re ready, and after you’ve talked to a lender and have been preapproved and know what you can afford versus what you can spend. What’s the difference? Maybe you can afford a $4,000 mortgage, but maybe you drink about $1,000 a month. Or Maybe you gamble $1,000 a month. Maybe you got a $1,000 … drug habit?. Maybe you like to donate 1,000 to charity every month. Either way, it’s knowing what you can afford every month.
Now, in Washington D.C., what kind of market are we in? Is it a buyers’ market or a sellers’ market? If you said a buyers’ market, I want you to take a step back, and then another step, and then so far that you can’t hear me yell at you like Gordon Ramsey after you burned a steak. I need you to listen, or you can skip 53 seconds into this video right here.
So, D.C.’s in a perpetual sellers’ market. Now, one thing that sounds almost counterintuitive in a sellers’ market is that it’s always a good time to buy. Prices are just going up. Same home next year will cost you more than it will right now.
So, Pey, what do I do? How do I navigate this crazy market? It’s really all about you and your preferences. Do you want to compete? Do you not want to compete? Are you afraid of competition? Does it scare you? It’s really your agent’s job anyways. And are you a picky buyer? There’s still tends to be more homes on the market in spring. The negative is that there’s more buyers too. So while you have a bigger selection, you got many more people that want your house, and that means you have to compete.
“So, Pey, how do I compete?”
It could mean a whole slew of things. You could put down bigger down payments. You’re going to be going up against cash buyers, giving up home inspections or doing them before you put in the offer, waiving appraisals, waiving financing, and if you have a home to sell, you’re going to have to do that independently of this transaction.
Now I need you to listen. If you’re competing, a home sale contingency is the death of your offer. Dun, da, dah. No, but seriously it is.
“But, Pey, I hate competition.”
Oh, un momento, there’s a market for you, and it’s the holidays. December and January is a fantastic time to buy. Less buyers on the market, chances are very little that you’ll be competing and more power to you, the buyer. There’s less people shopping, and the sellers will be motivated to accept your offer.
“But, Pey, I want my house now. I don’t want to wait till the holidays.”
Okay, Mr. or Mrs. have your cake and eat it too. There’s a market for you as well. Look at homes that have been on the market for three to four weeks. Doesn’t always mean there’s something wrong with the house. Sometimes it’s just overpriced and you’ll probably have some wiggle room for negotiations.
So, quick rundown. If you’re looking to buy, you don’t want to compete, look at December/January. If you’re open to competition and you’re very picky about your house and you want to see more inventory, go in the spring. Just realize you’re going to be competing. That means you’re going to have to waive some contingencies. If you don’t want to compete in the spring market, look at homes that have been there for three to four weeks.
Again, this is Pey Behin. You can find me on Bookface, Snappychat, Tweeters, and the ‘Gram, all the same name, Pey Behin. Please like and subscribe. Thanks for watching. Till next time.”
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