Home Buying Tips for the Holidays
Holiday Shopping
Some of the best shopping deals out there are on Real Estate, not just 60-inch big screen TVs and toys for the kiddies. The holidays are a great time to find bargains on Real Estate too.
Here are a few tips on how and why to use the holiday season to your advantage, when buying a home or real estate investment.
Less Competition and Inventory
There is one big truth that happens every holiday season – limited inventory for sale and fewer home buyers out visiting homes. While this may be seen as an obstacle in finding a home, it actually can be great opportunity for home buyers. With fewer buyers (less competition), these buyers may have an opportunity to negotiate a great low price.
Motivated Sellers
If a home seller is selling a home during the holidays, there is probably a compelling reason behind it. In the real estate industry we call these Motivated Sellers. As a buyer, the motivation behind the sale can give you leverage in negotiating the best price and terms on your new home.
Private home sellers often have reasons such as: looming job relocations at the first of the year, contracts on new homes they are purchasing, or other unexpected reasons that are behind the sale of their home at this time of year.
Builders, investors, and financial intuitions also have additional motivation at this time of year. Inventory that they hold may need to be off the books before the year ends.
Maximize tax benefits
Closing on your new home in the last month of the year may give you an additional write off this year if you itemize deductions on your tax return. Things like points paid on a mortgage, property taxes, and interest may all give you a tax advantage this year. Of course you need to talk to an accountant for advice on just what is eligible for a write off.
Low interest rates
Interest rates fluctuate through the year based on many different factors. One factor is demand and as you have already read, when demand is low, motivation is high. This hold true for lenders as well. Currently we are seeing interest rates near their historical lows . While it’s not a guarantee that the holidays are pushing rates lower, it’s still a good time to add the lower interest rates to the list of why it’s a good time to buy a house this holiday season.
Faster closings
Private home sellers, builders, and financial institutions aren’t the only motivated players during the holiday months. Lenders, brokers, real estate agents, title companies, appraisers, and inspectors are often motivated to get another deal done before the end of the year. Remember that these businesses also typically have less volume at this time of year.
These businesses additional motivation at the end of the year or at the beginning of a new year, can bring additional focus and speed to the entire home buying process. Ultimately, closings may take less time than other months. Businesses are looking to close their books, agents are looking for that last commission for the year, and of course sellers are ready to move on.
Looking for a great deal on a real estate purchase this season? We can help. Contact us today and we’ll help find you that bargain you’re looking for.
Happy Holidays!
