Have you ever considered how property appraisal works and how appraisers evaluate the market value of a home?
Many appraisers look at recently sold properties (last 90 days) within 1 mile radius of the subject property and will try to identify three comparable sold homes that are most similar to the subject property. If the property is located in a subdivision, it is likely that s/he will identify three properties with the same square footage, potentially same floor-plan (cookie cutter homes). It is more challenging in rural areas where homes are more unique and spread out. Obviously, appraisers will consider a multitude of other factors.
Regardless.
Why is this the best time to buy?
First, during the winter months, property values tends to stagnate, or may even slightly drop, and as result, comparable sold prices available to appraisers are low.
Second, most people overspend during the holidays, draining all their reserves or they are worried of potential tax dues. In either case, they will be unable to purchase a home until the end of the tax season, when they finally resolve their tax duties or receive their tax returns.
Third, home owners may have to sell due to financial needs (pay for taxes or else).
Fourth, many businesses are going through large scale hiring and layoffs during the first months of the year, forcing people into drastic changes - some sooner than others. Often, new hires are not in the position to purchase until early spring or even summer as employment status and stability effects their ability to get a loan.
ETC...
In summary, if you have stashed away some money and have a stable income, you should buy NOW. Low interest rates, relatively low competition, low comps will force appraisal down that will help you buy at a reasonable price, and finally, you will likely be able to close in a relatively short time as neither the affiliated service providers nor your agent will be overwhelmed by multiple transactions.
Get out and buy your dream home today!
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