Best Month To Buy
The real estate market is attracting attention lately due to the aforementioned rise in prices, even though this is good news fairly many are unaware of the prime times to buy and sell homes. Down right, the best month to make an offer on a home is in January, fewer buyers go house hunting in the cold weather so there is significantly less competition. Sellers are definitely more motivated to sell at this point than in the spring, the reason for this is because they could be feeling financially insecure from the money spent on holidays, not to mention those who list homes in the winter are willing to risk selling a home when properties do not show particularly well.
Now that we covered the month, the day is just as important. The best day to make an offer is on the first Tuesday of the month. The reason for this is simple, a selling home owner just filed a mortgage check on a home they do not want to keep, and he or she just wants to sell it so they do not have to write another check. Why Tuesday? Well, by Tuesday they would be concerned that they would not receive any offers from the house hunters that saw it the previous weekend.
Selling A Home
Now that we covered buying the home, time to discuss selling one. The best time of the year to sell a home is during the spring. Buyers will show up out of no where during the spring with tax refund checks in their banks, and the odd thing is statistics show spring buyers more often pay full price. When listing your house do not put any zeros at the end of your listing price. Studies show that people perceive a precise price, such as $323,434, to be lower than the rounded prices like $310,000. Sales in real life show that one zero at the end of an asking price lowers the final sale price by .72%, and two zeros lower it by .73%. Although it does not sound like much, think of it like income tax, it can add up to thousands if you aren’t careful.
The best day out of the week to sell is Thursday, this is more accurate in a sellers market, but if you list your house for sale on a Thursday, weekend showings will show more prominence with buyers by Saturday (which is one of the more important days of the real estate week), your house will only have shown two days. The fewer the days that your home is on the market, the better chance the home will attract a full price offer. Even if your home does not sell by the Saturday of the next week, it will only show 9 days on the market which still gives you the advantage because psychologically, people see single digits as still a good number.
Deciding To Rent Or Buy
Now, if you are not a home owner, but rent out a space, you need to know the best time to stop renting and buy a house when it costs less to buy than to rent. Start by finding two houses that are similar, one for sale and one for rent, and divide the asking price by the annual rent. The difference is called the rent ratio. A rent ratio of 20 or more usually means that it costs considerably more to own than rent after you factor in the mortgage and taxes, insurance, repairs and other expenses. It makes more financial sense to purchase when the rent ratio is a lot closer to 10 than to 20.