Buying a house in winter - Pros/Cons

By Penny Elizabeth Dutkowski, Broker
HomeLife/Bayview Realty Inc., Brokerage

Strange isn't it that house hunting season within the Greater Toronto Area officially kicks off in mid-January in the dead of winter? While I'm not sure what started the trend - a surge in listings or cabin fever, the one thing the last 12 years has shown is that neither wind, rain, sleet, snow nor dreadful cold keeps buyers home bound and sellers are all too happy to oblige by offering up the goods.

Yet winter is the only one of the seasons where the pros of buying a house - that is a non-apartment, are fewer than the cons and doubly true in a seller's market where bidding wars are the norm. Inversely of course this means that for sellers the pros outweigh the cons. Let's take a look at what some of those are from both perspectives:

Buyer pros are more or less limited to: 
- Values by February end are generally below the previous year's high and less than they will be by May.
- Better selection than the summer and fall.
- Lower chance of government mortgage market curtailment intervention.
- Spring possession opportunity to renovate, landscape etc. in mild weather.

Seller pros:

Aside from the low probability of government intervention to cool the market thus prolonging the chance of a sale, a seller's is largely centred around one other scenario - the inability of buyers to undertake a full and complete inspection to determine the extent of any problems either pre-existing or newly occurring because of accumulated snow.

For good measure, the underlined is worth reading a second time because:

• The condition of the roof can't be determined.
• Grading and proper drainage can't be determined. 
• Exterior of the foundation can't be inspected for cracks, fixes, other issues. 
• Driveways and walkways may not be completely visible to determine faults.
• Air conditioners are generally not tested.
• Outdoor hot tubs may not be in use and can't be tested.
• Pools can't be inspected; the equipment can't be tested.
• Decks can't be inspected.
• Underground sprinklers can't be tested.
• Last year's landscaping & lawn health is at the mercy of the weather.
• Rural properties can have other uncoverable issues with wells, septic tanks, drainage etc.

In comparing the lists then it's easy to see the disparity between the pros and cons and who stands to benefit the most. 

On the one hand while a seller is required to disclose serious (latent) defects they know about a rough winter can wreak havoc on a property and unless evidence of same becomes visible prior to transferring the property to the buyer, the costs to remedy is likely to fall on the buyer so the dead of winter favours the seller.

On the other hand, in reading through the second list, buyers may have thought that leakage arising from the first three may either be evidenced internally; can be assumed from visible ice-damming or can all be dealt with via representations, warranties and holdbacks. Evidence may be visible however, having the seller deal with them favourably through repesenattions, warranties and holdbacks would be entirely dependent on the type of market. In a seller's market where multiple offers such as we've had for the past 5 years are more common than not, the smart seller is more apt to take the path of least resistance - few to no representations/warranties and no holdback concessions, even if evidence may suggest the start of a problem.

So what can buyers do to level the playing field and ensure the money they save by buying before May when values tend to reach new heights stays in their pockets? 

1) Hire a REALTOR® who will thoroughly research the property; knows what to look for; ask all the right questions of the seller and write an offer that tries to overcome seller resistance while protecting you. 

2) Hire the right home inspector.

or if going it on their own be versed enough with what is required in no.1.

     By Penny Elizabeth Dutkowski, Broker with HomeLife/Bayview Realty Inc., Brokerage-Independently Owned 
and Operated. Thornhill, On. (905) -889-2200

All posts are the express opinion of Penny Elizabeth Dutkowski and should not be construed as that of the Brokerage.