Photo: Robert Clark
American homebuyers willing to close the day after Christmas see the biggest discounts, according to a new study by ATTOM Data Solutions.
“People closing on a home purchase December 26 were submitting offers around Thanksgiving and starting their home search around Halloween, likely not a common path to home purchase for most buyers and exactly why it’s the best time to buy,” said Daren Blomquist, senior vice president with ATTOM Data Solutions, in a statement.
ATTOM analyzed more than 18 million single-family home and condo sales over the past five years and found that only 10 days of the year offer discounts below estimated market value.
Buyers received the most substantial discount, 1.3 percent, if they closed on December 26 — saving roughly $2,500. This was based on data culled from over 22,000 sales posted on the 26th, and a median listing price of $188,000.
Sellers also offered premium discounts on December 7 ($2,000) and 4 ($1,823).
“Buyers and investors willing to start their home search right about when stores are setting up Christmas decorations will face less competition and likely be dealing with more motivated sellers, giving them the upper hand in price negotiations,” said Blomquist.
December had the most buyer-friendly days. Other “good” days to buy in December were the 29, 21, 1, and the 8. On average, closing in December saved buyers close to 1 percent.
But, what a difference a day makes — while buyers saved $2,000 on December 7, sellers only knocked about $143 off the price on the 8th.
Buyers hoping to save some dough should also circle October 12 ($1,000), November 9 ($666) and February 9 ($500) on their calendars.
Meanwhile, the top three states realizing the biggest discounts below full market value were Ohio (8.8 percent in January), Michigan (7.9 percent in February) and Nebraska (7.3 percent in December).
And at the metro level, Dayton (13.1 percent in January), Detroit (12.8 percent in February) and Cleveland (12 percent in January) offered the biggest discounts.
While the spring and summer are traditionally the most popular — and busiest — homebuying months, more buyers leads to increased competition, bidding wars and, in the end, higher purchase prices.
Sales prices in April averaged 5 percent above listing price, and were 6.5 percent and 7 percent higher in May and June, respectively.