Some clients re-selling their house, condo or lot tell me that they avoid or sometimes take off their property from the market during the Christmas Season because they perceive that offers will be lower, or that it may go stale in a market full of desperate sellers discounting their price tags.
Others, like another client of mine who had a super prime plus lot in Westgrove Heights, urged me last Christmas season to sell her property all the way thru the holidays. After 3 months of getting ridiculously low offers, I did. We were able to close a cash sale on the morning of December 24 of last year. The buyers were a Filipino-British couple who were in town for the holidays, and who were keen to buy property while on vacation. They fell in love with the location, the terrain,the view and their vision of their future home on that lot. So not wanting to lose what they believed to be their perfect choice, they bought at the owner’s original asking price, which was higher than the market average.
I would like to think that Filipino sellers may still find the Christmas season a good time of the year to sell, for one or more of the following reasons:
1) Sellers may find that the likely home buyers, the OFWs, would be in town for Christmas, and would love to view and buy a home or property investment for their family (as was the case I pointed out earlier).
2) When considering a re-sale property during Christmas, balikbayan Filipinos have a shorter decision time frame, seemingly due to their short time to visit, select, pay and finalize all the documentations. However, my observation is that Filipinos who buy during Christmastime have hurdled the early stages of the property evaluation process 3-6 months prior to coming home; hence they tend to buy at this time based on desirability of the property & goodness of fit to their needs, than based on pricing or discount schemes. If they’ve pinpointed your home, it’s the result of the buyer’s clarified intent and priorities, not whim (remember, a home is a planned purchase!).
So if you anticipate that you would like to sell before year-end, get your property out on the Net or through your personal network so it can be part of the homes for evaluation. Ask your broker to offer it in earnest at the start of October, so it stands more chances of entering the shortlist for consideration.
3) Filipinos have more bonuses at this time of the year to finance the downpayment, which is the key financial hurdle to overcome in home purchasing especially with first-time homebuyers; affordability of the amortization is only the second key factor. Hence, the Pinoy purchaser has more confidence to buy his dream home.
4) Banks home loan rates are at an all-time low, financing options abound. HSBC has its 5.99% interest rate, fixed for one year. Other banks have highly attractive,3-,5- or 10 year rates. And don’t forget your Pag-ibig financing benefit, which can finance your balance of purchase for up to 20 years or more up to Php 2.4M collateral value. Some have freebie items to go with the opening of both the loan and depository account (check it out: Some are even offering netbooks!).
By experience, observation and accounts of both fellow brokers and sellers, it doesn’t matter if you’re selling property worth P1.8M, Php 18M, or Php 180M. There ARE buyers for those three pricing levels that are buying now, believe me. And there’s a Philippine bank out there that’s glad to have borrowers this Christmas season–that’s business, they won’t turn you down.
5) For those who have saved for their dream home for a long time, they’re ready to buy in CASH now. Sellers would be surprised to find that there are buyers who are prepared to pay in spot cash for the PHp 1.8M-Php 180M range. Perhaps too, the demand to purchase homes during Christmas is more than the available inventory of good homes at this time of the year (if most people, in fact, back out of selling this Season, so the few who do stay on get the buyer’s wave). Buyers see a home purchase as a Christmas gift to themselves or their families; in some cases they don’t want to worry about a mortgage or a long-standing obligation. So they pay in cash now and secure their families’ futures with a solid, worry-free investment in land and home.
6) For as long as you priced your property to sell at market, you should be able to sell your house to a qualified buyer this time.
On the other hand, here’s an article on Pros and Cons of Selling Your House over the Holidays:
- Buyers will think you are desperate.
- It’s inconvenient to always be ready to show at a moment’s notice.
- The offers you receive will likely be for less than list price
- You’re appealing to a much smaller inventory of buyers who have very specific needs that your home might not match.
- It’s almost impossible to close a transaction in December if the offer is received mid-month. Buyers who want to close in January make offers in January.
- If you remove your home from the market, it can go back as a new listing in January, thereby drawing more traffic because it’s fresh.
- Your agent might be on vacation in December and unavailable.
Some sellers insist on leaving their homes on the market, regardless. The deciding factors depend on local custom, on what neighbors are doing and how real estate activity is viewed by others during the holiday season in your area. Every town is different.
Still, less inventory over the holidays means less competition.
If you do decide to sell this time, one thing I learned from Elizabeth Weintraub: Just because it’s Christmas, don’t over decorate that you mask the house’s features. You can create enough home holiday ambiance without the overkill.
And when Christmas is over, take off the decors, please! I’ve seen at least one Alabang homeowner who left the Christmas tree and decors all the way til Febuary (whether because the seller had not time to pack the decor, or they thought that it made the house look more festive and bright). It looked sadly so ‘trying hard to sell’. The house stood out in a funny way when we would view it, with most buyers asking if the owner was living there–the house looked like a model showroom which was forgotten and abandoned after Christmas.
Look at your own desire and need to sell early. If you are crystal-clear in your intent to sell and your reasons for it are solid, this festive Season gives you all the reasons to sell to the market.
