by Marco Di Gabriele
When people think about purchasing or renting a home, most think of the springtime as a pretty good time to start their search. After all, the weather is warm so you don't need to trek around in the snow to see houses, & since spring is typically the time when many sellers will list their homes for sale, there are a ton of options. On the surface, springtime seems like the perfect time to buy, but there are a few reasons why it may actually be wiser to buy something before the spring market arrives…
1) The Spring Market In Philadelphia Is More Competitive for Buyers / Renters
Since most buyers believe that springtime is the ideal time to start looking for a home, there are a large number of buyers flooding into the market all at once during this time of year. This is great for sellers because open houses are jam packed and listings are getting showings left & right, but not so great for buyers. The more buyers that go through the same listings as you, the more competition you have for your dream home. This could mean more situations where you are competing against multiple offers.
At the same rate, if you are looking to rent instead of buy, the same problem typically arises. Most rent schedules tend to align with school year, making the spring a very popular time for lease cycles to end. With so many local college graduates finding jobs in Center City, this is especially true for Philadelphia. This means that while there is a lot of rental inventory on the market during the spring, there will also be many renters looking for housing, which can potentially even drive up rental prices.
2) Buyers Have Less Leverage During The Spring Market
Piggybacking off of that last point, when there is a more competitive market for buyers & renters, this means that sellers & landlords typically have more leverage. Because the buyer pool is so dense during the springtime, it is not uncommon for sellers to receive multiple offers on their property, giving them the ability to choose between your offer and someone else’s. This takes the power away from buyers and gives it to the seller during negotiations. If you are renting, landlords will often time receive more than one application for their property allowing them to be more selective than they would other times of year. In the winter when the market is typically slower, sellers & landlords may be more willing to negotiate terms that are advantageous to buyers since they are less likely to be receiving as much activity on their listing.
3) You Need To Make Quicker Decisions During The Springtime
Due to the high levels of activity in the real estate market, during the spring you will typically have to move faster when making decisions to buy or rent a property. From firsthand experience I can say that I’ve seen multiple buyers & renters lose out on homes during the springtime because they decided to wait an extra day to “think about it” while someone else decided to put in an offer or application on the property. This is not an uncommon occurrence in the springtime and can be avoided during other times of year. I would always recommend that regardless of time of year, buyers should put in an offer on a property they love as soon as possible. You never know when someone else will put in an offer & in the springtime this is especially true.
If you are looking to buy a home in Philadelphia, let me know and I will help you to get pre-approved & start looking. If you are looking to rent I can help too!
