During the holidays, real estate transactions tend to slow. But here are 5 reasons you might just find the best real estate opportunity of the year at the end of the year.
Statistically speaking, real estate inventory is limited during the holiday months. There’s less real estate activity and fewer realtors, appraisers, and inspectors available than usual. Though that might seem like an obstacle, it can be huge advantage for home buyers. There is far less competition during the holidays: if you’re able to find a property, you’ll be up against fewer buyers and there’s a stronger possibility that you’ll negotiate a favorable price.
When it comes to buying real estate during the holidays, there may be no better leverage than a motivated seller. If someone is selling a home during the holidays, chances are, they have a compelling reason to do so. Sometimes a job relocation, unexpected event in the family, or the desire to be in a new home of their own by Christmas, puts sellers in a tight spot. Buyers have even more power if the property has been on the market for a while.
It’s also important to know that private sellers are not the only ones motivated to sell during the holidays. Banks are often motivated to get foreclosure properties “off their books” before the end of the year. This makes for a great opportunity for both investors and buyers looking for their next property.
Lower interest rates
Historically, interest rates tend to be lower during the holidays. While lower interest rates aren’t a guarantee when buying a home during the holidays — few things in real estate are a guarantee — you can often find favorable financing during the holiday months.
This advantage will depend on your financial situation, and your current year’s tax liability. Closing on the purchase of a property at the end of the year can give you major tax advantages. If you itemize deductions, you might be eligible to deduct discount points paid upon closing, property taxes and mortgage interest. If you’re buying the house as an investment asset, and have a business entity set up, then there may be even more tax benefits available to you.
Of course the purchase of a home should take into account the current real estate market, rather than just reducing the amount of money you pay the IRS.
Home sellers aren’t the only motivated folks involved in the home buying process during the holiday months. Lenders, brokers, and realtors are often motivated to get a deal done before the end of the year. And since there is less purchase volume, transactions tend to close more quickly than in the springtime.
If less competition, motivated sellers, speed to close, lower rates, and tax benefits sound like good reasons to buy, then it’s probably time to get pre approved for a new home. You might just find the best real estate opportunity of the year! Fill out the form below for a no obligation, no cost pre approval.