While most people are rushing about completing holiday errands in preparation of the many parties and gathering of the season, you may be wondering if it’s a good idea to buy a home this time of year. Let’s take a look at the benefits of finding your new home before the year comes to an end.
Why should I buy a home during the holidays?
Purchasing a home during the warmer months can seem like a great idea, but there’s something to be said about the excitement of starting off the new year in a new home. There are several financial benefits to buying a home during the holidays that include tax benefits and incentives.
What are builder incentives?
You can take advantage of the usual pause in property sales that impact home builders during this time of the year. They are hoping to attract potential buyers and may be more open to providing incentives to make the deal more appealing.
Incentives that are offered sometimes include the builder agreeing to pay closing costs or providing a percentage off the listing price of the home. One of the most popular incentives is the addition of upgrades to finishes, fixtures, appliances, counters, or floors.
What are the possible tax benefits?
It’s not usual for couples to decide on an end of the year wedding to make sure they are set up to benefit from the tax filing period just around the corner. The same consideration comes into play when buying a home during the holidays.
Some deductions you may be able to count include interest points, mortgage interest, and taxes on the property. If you’re buying this new home due to a relocation related to your job, you may be able to get a tax credit for moving expenses and other costs related to the purchase of the home.
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To make sure you’re getting the most from the purchase when it comes to taxes, you’ll want to set up a meeting with a tax professional. They will help you with the timeline and make sure that you count everything that could be beneficial.
Are there less homes for sale during the holidays?
The real estate market slows down, predictably, each year during the holiday season in most locations, but that doesn’t mean the number of homes for sale has decreased. What it does mean is that the homes that are on the market are not getting the attention they do during more popular times for buying a house.
Why do people avoid buying during the holidays?
When the holidays are on the horizon the focus of many people shifts from their goals to the beauty of celebrations, community events, and gift giving. This is a beautiful time of year that is filled with plenty of activity and money being spent on gifts and gatherings.
You’ll find that many people are less inclined to go through the home buying process because they feel they have enough to deal with during the holidays. They may feel that it would stretch them financially if they were to focus on what’s needed for the home purchase.
You could benefit from the usual home buying trends seen during the holidays. Sure, you may have to cut back on the holiday spending a bit and be ready to transfer those decorations to a new home, but just think of the incredible experience of starting the fresh, new year off in a fresh, new home.
Are sellers more willing to negotiate?
The seller you’re hoping to send an appealing offer to is just as excited to receive that offer during the slow real estate season. For this reason, a seller may be more willing to negotiate the terms of the sale or come down on the asking price.
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This is where your real estate agent will shine like one of the brightest stars on a decorated tree. They are pros when it comes to negotiations, and they can represent your interest in these negotiations so that you don’t have to deal directly with the seller.
The seller may agree to lower the asking price to increase the chances that you’ll follow through with the deal. They may agree to cover the closing costs or add something to the deal to sweeten things.
When is the best time to move?
We won’t sugar coat things when it comes to moving from one home to another. The process can be tiring, stressful, and time consuming.
What we can offer in the way of hope is that there is a light ahead when it comes to moving during the holidays. The first benefit to moving at this time of year is that most people have more time off during the holidays than at other times during the year.
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If you have time off from work for the holidays and you have a vacation that is available, you could be setting yourself up for a much less stressful move that is not based on time constraints. If it all works out well, you could have time to move, get settled in, and still enjoy some of the holiday cheer.
Because of the lack of demand for movers, you have the power of comparison shopping on your side, as well. If you get a quote from a moving company that seems a bit high, let the next one know, and you may find that they are more than willing to give you a discount just to get the contract for your move.
You may also find that end of the year sales and deals give you the upper hand when it comes to purchases for your new home. Many stores offer end of the year sales on home goods, furnishings, and décor.
What do I need to know about closing day?
The end of the year is the perfect time for getting a faster closing day on the schedule. Everyone is ready to get the deal completed and wrapped up, so you’ll likely find that the timetable for closing day moves right along swiftly.
Mortgage loan lenders are highly motivated to get the sale closed before the end of the year reports are completed. The seller wants to get the funds from the sale and move on to their new location.
The term closing day can actual refer to a closing that takes place over several days. However, during the holiday season, you may find that the process moves along faster because of the tight schedules of everyone involved.
You’ll want to do your part to make this as easy as possible by meeting all deadlines, having the money on hand that is needed, and having all paperwork completed in a timely manner. Of course, some things are beyond your control when it comes to timing, but you want to make sure you’re not doing anything to delay the process.
Will I get better interest rates during the holidays?
We mentioned the benefits of buying a house during the holidays when it comes to tax benefits, but there are also benefits when it comes to mortgage loans and interest rates. It’s a good idea to use an online mortgage calculator to get an idea of what you can expect when it comes to current interest rates.
We recommend that you take some time to check your credit reports and know your credit score since that is an important part of the mortgage loan equation. You can get a free copy of your credit report from TransUnion, Equifax, and Experian once a year due to the Fair Credit Reporting Act.
Once you get your credit reports, you’ll want to compare the information on all three. This is a good idea because each agency could be reporting different information.
Of course, having a few marks on your credit report doesn’t mean your holiday home ownership dreams are dashing in the snow. It just means that you may take a hit when it comes to the interest rate and need to pay a higher amount.
How can a real estate agent help?
We’ve mentioned how a real estate agent can help you when it comes to negotiations, but we want to also let you know how much a real estate agent can save you valuable time. By setting up saved searches that are based on your current needs, you can help your real estate agent when it comes to finding the perfect home.
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Your real estate agent will go to each showing and open house with you and be on hand to answer any questions that you have about the property and the area. They are the ones who ask the questions, so you won’t have to deal directly with the seller or their real estate agent.
This time of year can be a bit slower for many real estate agents, which means that your time is maximized, and you get the benefit of having more of their attention. Besides, there’s nothing better than handing over the keys to a new home to a homeowner just in time to celebrate the new year!
Conclusion
While most of the people in the area are focused on holiday shopping, holiday tunes, and holiday treats, you can make the most of the season by looking for the perfect holiday gift – a new home! Buying a home during the holidays may not be for everyone, but there are definite benefits to considering whether this is the right time for your home purchase.
You could be celebrating the joys of being a new homeowner as the clock strikes midnight to welcome in the new year that is full of amazing experiences and opportunities to create precious memories in your new home!
