Move over location—there’s a new real estate mantra in town.
It turns out when you buy your home can be as important for your budget as where.
After reviewing more than 32 million real estate sales since 2000, RealtyTrac analysts have discovered October is the best month to close on a home purchase.
“On average, October buyers get a 2.6% discount below estimated market value,” says Daren Blomquist, RealtyTrac vice president. “It’s that middle month between the summer selling season and the holidays [when] people are trying to squeeze in a purchase or a sale.”
And a seasonal price discount isn’t the only motivating factor for buyers to consider.
We turned to real estate and money pros for more insights into why October is the time to sign on all those dotted lines.
Reason #1: Motivated Sellers Willing to Negotiate
“Home prices often drop in October as sellers realize they’re on the shoulder of the home-buying season,” says Sandra O’Connor, a North Carolina-based regional vice president of the National Association of Realtors.
Any sellers whose homes have been on the market since the summer will be especially motivated, adds Blomquist, because they are getting nervous. The result is an environment that gives buyers the upper hand in negotiating a deal.
House hunters also typically run up against less competition come October. Many families avoid the fall buying season because their kids have settled into school, which thins the crowds.
And with all four major professional sports in play, other would-be buyers may be tempted to stay home with their big-screen TVs rather than hit open houses.