Date February 12, 2005
Time 09:30 AM - 10:00 AM
Station CNN
Program Open House

GERRI WILLIS, host: Right now, we're in the midst of the real estate off-season. Every year across the country, home sales drop off considerably during the winter months. But with new construction still available and homes for sale, it makes it a terrific time for a buyer to negotiate.

Stephen and Beatriz Mills fought a blizzard to shop for their dream home.

Mr. STEPHEN MILLS (Bought New Home): Right before it started snowing, we met with David, like, it was--was it around 11:00?

Ms. BEATRIZ MILLS (Bought New Home): We, around 11:00, we went right back to the place that we knew we wanted to make an offer on.

Mr. MILLS: Yes, exactly.

Ms. MILLS: But we wanted to see it one last time.

Mr. MILLS: Yes, he drove us out there. As he was driving, it started to flurry a little bit. And probably by the time we were done, there was already, I'd say...

Ms. MILLS: I would say three or four inches of snow.

Mr. MILLS: ...three, four inches of snow on the ground.

WILLIS: But the Mills are in the home-buying minority. The National Association of Realtors says only one in five homes are sold in winter, compared to almost a third in the summer. That means off-season buyers can catch a break, and not just from sellers. In winter, banks may drop interest rates by a quarter-point.

Mr. BOB MOULTON (President, Americana Mortgage Group): We generally find some lenders offering pricing incentives when volume is low. In the winter markets, we have banks coming in to us, saying, 'If you can bring us more buyers, we'll give the buyer a break on their interest rate.' So there's also an incentive to the buyer to buy a house in the winter.

WILLIS: Another off-season break, it's easier and cheaper to find movers.

Ms. REVITAL DRUTAN (General Manager, Schlepper): Most moving company gives between 5 to 20 percent off the cost of the move during the wintertime. But you can get much more for your money. It's not just a percentage that we take off. You can get boxes for free. You can get better dates to move.

WILLIS: But there are downsides. The lack of inventory in the winter may make it tougher to find your dream home. And even if you do, that lovely blanket of snow covering the grounds means you won't be able to see landscaping underneath. Still, any unseen problems with the exterior of the home can be covered by a contingency clause at sale.

I think people feel like they maybe have a little less pressure in the buying process.

Mr. DAVID FIALK (Choice Realty): And that is real important. The marketplace we've had in the past three years, where we've had more buyers than homes on the market, there were multiple offers, competitive bidding situations. And right now with not as many buyers looking at that same home, there aren't as many contract offers, and the buyer can step back and truly think out the purchase, rather than acting on it on the spot.

WILLIS: Even so, if you'd rather wait till spring, there are things you can do now, from securing a pre-approval letter to locking in a mortgage rate.