When is a good time to start looking?

PandPMeant2B

Hi All!  I just made the "switch" from the Knot, so this is my first post here.  H and I are currently renting and our lease is up at the end of March.  We are excited to start looking at houses, but know it's a little soon.  Unless we find a seller that's REALLY flexible with dates, it's probably pointless to start looking now, even though we've recently seen a few houses that we LOVE.  H is currently looking through our lease agreement to see if breaking the lease early (with proper notice, of course) is an option.  If not, and we're stuck where we are until April, when would you suggest starting to look? I absolutely hate the thought of getting down to the wire with no prospects. TIA!

moonprincessd

This is one of those things where it various based on location, budget, etc. We started looking 4 months in advance and found a house right away that we loved, so we paid rent for 3 months as well as house payments. 

On the other hand my parents took months to find their house. It's all about what's available in your price range and what catches your eye. You might find one you love right away, or it might take you 6 months! Our Realtor had a couple that spent a year looking at houses before finally picking one. 

G2SoccerTaz

I would say start looking around for houses now. I have been hearing that getting a mortgage will be harder next year. We started looking in December. We had to be out of our rental by June. We did not close on a house till middle of May. You can set your closing date and that is negotiable between the parties involved. Typically around here, closing is 45 days. I had a friend that the buyer accepted a 2 month closing period. Some of it depends on how prepared the seller is to move. We had a 30 day closing period in our contract but it ended up being just a few days more.

LoveKiss

Start getting to know the real estate market in your desired area. Look at the average days on market. If homes are listed for 60 days or less, it's an active market. That could make buying a home more difficult. Also look at the volume of homes for sale in your target area. Are there a lot of homes for sale in your target area for your target price? Would you actually want to live in any of them? You should also look at your home buying budget in comparison to the average sales price in your target area. If your budget is below that average sales price, that could also make buying more difficult. And you will want to consider your own level of picky-ness when estimating how long it will take to find and close on a home. If you have high standards or if your standards just don't align with the majority of houses available in your target area, then this could also extend your process.  The final thing that you should factor into your timeline planning is the type of loan you plan to use. cash deals close the fastest, followed by conventional loans, then FHA/VA/USDA. Federally backed loans take longer to close and have more hoops to jump through, so if you plan to use one, you should add 4 weeks to your timeline to give yourself a cushion for closing delays.

PandPMeant2B

Thanks, all!  I appreciate your insight!

whitney614

It can really vary! When we started looking for homes, we were just looking and didn't expect to buy for another 4-6 months...and then after only 3 or so weeks we found our house, a little over a month later we closed and moved in! 

On the flip side, in the exact same market, my bil and sil were looking for over 8 months before they found their house. It can take time, so it's never a bad time to start looking. But if you do start looking know that you could just as easily find the one sooner than you think - and you'll want to be prepared to move on it if you do. Happy hunting!  

fluttaby32

In my experience the closing date is a little more buyer-determined anyway. You could put on offer in with a close date of when your lease is up and they can accept it or not, or negotiate. It doesnt hurt to start looking, Zillow you can "save" what you like, and you never know, if you end up having to wait those houses could have dropped their asking price by then.

HarleyKins

I tell all my buyers (I'm a Realtor) to work backwards when thinking of the home buying timeline.

If lease ends March 31

Plan to close 1-2 weeks ahead - this gives you time to move, clean, arrange, etc. Also if something happens the day of closing (if you close on the last day of your lease) you could be "homeless" for a few days. Having 7-10 days to move makes the situation not so stressful too.

Plan on at 35 days from the date of your accepted offer to close. Lenders like more time than less to get everything done. Our Spring market gets crazy and everyone can get swamped real quick.

Negotiations can take 1 day or 12 days - like I had recently. The 12 day negotiation started cutting the time really close... and people got anxious and antsy.

Plan on a few weeks for looking. Sometimes less time is best since it can get overwhelming looking at so many homes. Also, making a last minute decision (say, not offering until 4/29) can be a bad decision since you're in panick to move.

Our spring housing market in Souther Wisconsin begins around February it seems. Houses pop up and get snatched off the market so my buyers couldn't hesitate. So being ready to make a decision is good - meaning being ready with your lender, etc.

Find an agent to work with. Sites like Trulia and Zillow can be outdated and wrong. Zillow tends to 'list' properties that aren't even forsale... An agent can also send you listing the minute they come up on the market. With Trulia and Zillow, those listings can appear days after they are on the market.

I'd start looking the mid-end of January and know that you'll be writing an offer around mid-Feb.

Good luck! PM me if you have more questions.

juliebeannn

We actually have the same time line as you!  Our lease is up on 3/31, also.  After speaking with some friends/family in real estate, we plan on getting our pre-approval around mid-January and start looking right away.  We've been causally attending open houses in the neighborhoods we like so we can get an idea of our likes/dislikes/must haves/negotiables/deal breakers.  We want to get our must-have/deal breaker list ironed out before we start seriously looking.  We've already discovered a few things that we didn't expect to "want" after going to just a couple of open houses.  Also, you get to meet a lot of great (and some not so great) realtors that specialize in the areas that we like at these open houses.  After mingling with a few at these open houses, we've been able to narrow down the top few we'd consider hiring as our buyer's agent. 

Good luck!!!!