Benefits of Year-End Real Estate
Summer and spring are the two busiest and competitive seasons for purchasing real estate; but, what happens in the winter months?
Benefits of Purchasing Real Estate Year-End
TAX SAVINGS
If you purchase a house at the end of the year and close on or before December 31st, you’re eligible for mortgage-related deductions. These include deductions for mortgage interest, property taxes, interest costs, and points, which can reduce your taxable income by thousands and save you hundreds. You can still take advantage of these deductions if your mortgage closes after January 1st, but you’ll have to wait until the following year when you file your tax return. If you need additional savings for the current tax year, the sooner you buy the better!
MOTIVATED SELLERS
The winter months bring a smaller group of home buyers looking to move. Whether it be the weather, holidays, work, inventory, etc. Winter is always a great time to buy a home for those specific sellers and buyers. Sellers who decide to list their home in the winter may not see a quick turn over but when the buyer is ready, the offer will be strong. During the process, a buyer may see faster responses to offers and flexibility to terms from the seller. Many sellers will also like to close the sale of their property by the end of the year so that they, too, can enjoy tax savings on the next home they purchase.
LESS COMPETITION FROM OTHER BUYERS
Every year the real estate market slows down as the weather cools. Sellers and buyers left in the game during the October and November months are eager and prepared to move before the Winter season. During winter, as to be expected, the inventory and buyers are low. Buyers will hold off until early spring to start the search again, that is if they can wait. A home buyer in the winter months needs to move and is ready to make a deal. Sellers will see few buyers and will fear that they will miss out on the right offer.
BUILDER INCENTIVES
Maybe you were interested in new construction? Some builders toss in extra incentives, such as a builder credit toward upgrades, discounts on the asking price, or pay closing costs. Why do you ask? Builders need to make a certain quota of transactions and/or new home builds by the end of each year. If they are looking to increase last-minute numbers it may be your lucky day!
AVAILABLE MOVERS
Many moving companies are booked six weeks or more in advance during the busy spring and summer months. The ‘first come first serve’ applies during this time of year. It’s ideal for everyone to have as much time as possible when moving to your new home. Having access to multiple movers gives the buyers time to prepare their belongings as well as getting multiple quotes from different companies. The buyer is not at the ‘mercy’ of the mover.
The end of the year is a great time to become a first-time homeowner or close the sale on that pending investment property, vacation home, or future residence.