Where is the Clearance Rack?

Here in the Midwest, we take the clearance rack seriously. We know where the good stuff is – the deep discounts. We are heading to the back of the store and don’t get in our way! We love bargains, sales, mark-downs, coupons, and deals! We do not pay full price for anything! And we are more than happy to tell you about our savings.

Is there a clearance rack in real estate? Sadly, in this market, not so much. The current market favors sellers and leaves the buyer with no discounts. I heard a realtor say the other day, “Getting a house is the deal – that’s the deal right there!” Demand is high, supply remains low, and sellers with well-priced properties may still receive multiple beautiful offers, well above the asking price, with few if any contingencies. If buyers manage to have their offer accepted – they get a deal!

But here’s a secret I believe to be true. While I cannot offer buyers a “clearance rack special”, I often encourage them to shop in the fall – the late fall – the holiday season if they can manage that. I have seen buyers during the last several years face less competition and pay closer to the asking price when they shopped during the deep discount days of the year.

Is shopping late in the year convenient? Not necessarily. Did you want to spend Christmas Eve hauling your furniture down the steps, out the door, into the moving van – only to repeat the process in reverse at your new address? Maybe not. However, purchasing a house without competing against other buyers might make the timing more attractive. 

When buyers decide to “wait until spring” to buy, I’m always a little bit sad inside. I know they are going to face stiffer competition and pay more. But, many leases on rentals and apartments renew in the spring. Renters rush into the market in March, hoping to find something quickly, begin building equity, and stop throwing rent money away. And then they encounter all the other renters trying to do the same thing. I often wonder if renters would save money by buying at the end of the season – even if they have to pay a couple of extra months of rent to finish out their lease – as opposed to waiting and spending thousands competing against other buyers in the spring. I wish I had some data on that! 

I’m already starting to see a little bit of the “autumn clearance” effect on properties. If you’re thinking of buying, let’s get going! October starts this weekend – that’s autumn in my book. I’d love to help you find the “clearance rack”!