One of the very first things I learned when I became a real estate agent twenty plus years ago was that you never sold your house in January, February, or March. “Wait for the spring market,” is something that I told numerous sellers early in my career because that was what the real estate industry taught us. You have to wait for the azaleas to be in bloom, for the grass to green up, and for the new crop of buyers to start entering the market. For the most part, that is what we did; we circled dates in early April, figuring that was going to give our sellers the best opportunity to get the most for their properties. As agents, we embraced the notion that the first three months of the year were going to be on the slower side and that, once we turned the calendar to April (yes—we still used an old-school paper calendar), we would all be going a thousand miles an hour until the traditional summer slow down. 

I am here to tell you that, for the most part, we were all living a lie. As it turns out, the first three months of the year can often be the best time to list your property. Despite what many of us believed a decade or two ago, I now truly believe that January, February, and March are quite possibly the best three months to sell your home, and I am going to tell you why.

Increased Lack of Inventory

One of the largest factors driving our real estate market is an overall lack of inventory. Simply put, there are not enough homes for all of the potential buyers in our area. Even with the slower-paced market that we have been in for the last eight months, our overall supply in most areas is still between two and four months, which is incredibly low. To put that into perspective, at the peak of the great recession of 2008, 2009 and 2010, our inventory levels were consistently between a twenty-five and thirty month supply. To make matters worse, many builders have canceled or delayed new construction projects as the market has shifted away from the frenetic pace of 2020, 2021, and the first half of 2022, which is putting an even greater strain on our already depleted inventory. The supply levels for our region are typically at their lowest in January, February, and March, potentially making that a fantastic time to list your property.  

New Buyers Entering The Market

One thing that we have consistently seen over the last ten years or so is that the new year brings out new buyers. Even with the recent rise in interest rates, this has held true in 2023 as well. Speak to any reputable mortgage lender, and they will tell you that the number of new mortgage applications rises sharply in the new year. Many agents have taken on several new buyer clients and/or had purchasers reach back out to them, saying now they are ready to buy. While you will see new buyers entering the market throughout the year, one could make a very strong case that the largest collection of them are starting their home buying journey just after the holidays. What this has meant for many agents early on in 2023 is fully booked showing schedules on their listings, multiple offers, and, in some cases, escalation clauses that are going well above the original list price. 

If you are a seller, the laws of supply and demand may not be any more in your favor throughout the year than they are in January, February, and March. Obviously, there are exceptions to everything, but historically, many of the highest prices we have seen for properties are for those that sold in the first three months of the year. While waiting for the spring market was what we used to think was the best strategy for sellers, now may, in fact, be the best time to list your property. So, if you are considering selling your home, it is important that you speak to your trusted McEnearney Associate about whether now is the right time for you.

Andy Hill is Executive Vice President and Managing Broker for the Washington, DC and Maryland offices of McEnearney Associates.

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I started my real estate career selling new construction and it was a unique and educational experience for me and my clients. There is nothing quite like watching a hole in the ground become a bustling construction zone that gradually evolves into a beautiful dream home, despite all the annoyances of delays due to weather, supplies, or contractor issues. It’s a process that can be both exciting and agonizing, with a lot of unknowns along the way.

When a potential buyer comes into the sales office for a new development, it would be an understatement to say there is a high potential to be overwhelmed. This is where having a trusted, professional Realtor working for you is crucial.

First, there are the numerous options – plantation shutters! wood grain! Sub-Zero refrigeration! heated tiles in the bathroom! a doggie shower! –  and floor plans to choose from and it’s inevitable that there is always that one feature from one floor plan that a buyer wants to make work in a different floor plan. 

Builders are becoming much more flexible with buyer customizations, but where the new build is in the construction process will determine how much tweaking can be done. For example, when a home is 3/4-complete, a buyer cannot expect the builder to now add extra outlets, a speaker system or a fireplace. In building their “Forever Home,” you would be amazed at the last-minute changes buyers expect a builder to do. Of course, the builder wants to make the customer happy and will try to accommodate them…for an additional price. Your Realtor can advise on the features that offer the best bang for your buck and what will unnecessarily increase the price tag.

Second, there’s the question of “location, location, location” and consistency in aesthetics. What are the premier lots in the development? How does lot elevation affect views or noise? How much can a townhome be customized if an entire row of homes are being built at the same time? Do buyers get to choose the brick color on the house? A builder does not want to have two townhomes or detached houses next to each other with the same features and aims to have an appealing and cohesive look to the block/street/development. 

Builders want to make all models of a home enticing, so you may have some features that are better on an interior unit than an end-unit to make both equally saleable, but if you want that end-unit with upgrades, it will cost you. Some plans may already include an extension on the back or a finished lower level including a full bath. Depending on the buyer’s budget, there may be a rough-in for a bathroom that the buyer can complete at a later date. Timing is important so knowing the timeline of construction will allow your Realtor to help you keep track of deadlines to make changes. For example, if construction on a townhouse has not been started there is a slight chance a buyer can make a small change (i.e. extra outlets, wiring for a ceiling fan, removing decorative columns, adding a bump-out.)

Third, as sales progress on a development it’s common for the premier lots/models to sell out on that fancy map builders have in their sales showroom, and buyers who come later in the construction process may have less to choose from. A savvy Realtor can keep track of what pending sales fall out because of financing or delivery issues and help buyers pounce on under-contract homes that may be coming back on the market.

Finally, the most important thing for buyers to keep in mind when purchasing new construction is that the sales representatives – while very knowledgeable and helpful in providing information and recommending options for the home – are working for the developers. Their job is to sell homes at the highest profit possible. Unrepresented buyers are essentially trusting this important purchase to a company that is not looking out for their best interests, but the interests of the builder. Having a Realtor guiding their clients through the construction process, maintaining direct and regular contact with the sales office and ensuring that their clients are dealt with fairly and professionally is the best way to make building a “Dream Home” as smooth and easy as possible.

If building a new home is on your wish list for this year or next, I would love to be the experienced and trusted advisor to take you through this journey. Please feel free to call me at 703.898.0032, visit MadelineHomes.com and follow me at @madelinehomes on Facebook or Instagram.

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