Is Winter a Good Time to Sell?

Throughout my real estate career I have often heard Sellers say, “I am going to hold off and sell in the Spring when the market picks up a little steam.”  Frequently they mention the difficulty of showing houses during the winter months, as the market slows down dramatically during the colder months. 

Of course this is true.  Every November the number of houses listed for sale during the winter will typically decrease by as much as a one third to two thirds.  Then things really slow down through the Holiday period from Thanksgiving until after News Years.  The market remains somewhat slow until early Spring.  So many sellers simply say “I do not want to hassle with the disruptions to my life during the Holidays and Winter Months”.  

Historically each Fall, Sellers who did not sell during the Spring and Summer months remove their houses from the Multiple Listing Service (MLS), often saying, “Once the snow flies and school starts we will hunker down for the winter and we’ll simply wait until next spring to sell our home.”  

In my mind this is faulty logic, and here is why:

• While it is true the market does slow down during the Winter months, it can be attributed to a number of reasons:

• The number of “tire kickers” have disappeared, as it takes a motivated buyer to look for houses when it is cold and dark, and one has to bundle up and brave the elements.  So Winter Buyers are often more motivated Buyers.  

• Much of the reduction can be attributed to Realtors who, like the bears, tend to hibernate over the winter months, or take vacations to warmer venues.  So Realtors seem to slow down a lot as well.

• Buyers have less houses to choose from, as the inventory of competing properties is dramatically reduced.  During the Spring and Summer months, there may be as many as 30-40 competing properties in a given price range from which Buyers can choose from, whereas during the slower winter months, there may be as few as 5-10 houses in the same price range to choose from.

• A lot of Winter Buyers have just relocated to Alaska, and may be living in a hotel out of their suitcases, with their dog or beloved family pets in boarding.  Maybe they have kids who are anxious to get enrolled in school.  Depending on where they relocated from, they may be in shock of their new surroundings and the harshness of the Winter Wonderland they now find themselves in. Typically these buyers hone in really fast on the house they are going to buy.

• Appraisers, Mortgage Lenders, Home Inspectors, Repairmen, and Title Companies are typically much less busy during the Winter months, and real estate transactions seem to go a lot smoother during the slower Winter months.

• During the Holiday Season, many Sellers have decorated their houses for the festive occasion, there are lots of good smells such as fresh baked homemade bread or that special pie from Grandma’s ole cookbook, permeating throughout the house.  Such may tug on a Buyers “emotional heartstrings,” helping them visualize living in your house, and making it a Home where they too can build many happy family memories.  After all, the process of buying is an emotional experience, and if you can tug on these emotional heartstrings, you are well on your way to completing the Sale of your Home.

If one simply looks at the statistics from the Multiple Listing Service, you can quickly see houses that sell during the Winter months sell quicker, and for closer to the asking price, than houses that sell during the Spring and Summer months.  Yes, it may be tougher to invite the buying public into your abode during the Holiday Season, and it may be a disruption to your life, however in the long run, you can possibly reap the rewards of a quicker sale, and net more proceeds at the closing table.