1. Less is more (when it comes to inventory)
During the Holidays, real estate inventory can be limited. There is less real estate activity — less people selling, less people buying, & less homes — during the holidays.
There also seems to be fewer mortgage lenders, realtors and inspectors available than usual during the Holidays. All this can add up to a huge advantage for home buyers during this time of year: less competition! If you’re able to find a property, there’ll be a lot less buyers — and the strong possibility that you’ll negotiate a favorable price that might put additional savings in your pocket.
2. The power of a motivated seller
When it comes to buying real estate during the holidays, there may be no bigger form of leverage than the motivation of sellers.
If someone is selling a home during the holidays, chances are, they have a very good reason to do so. This can be for a variety of reasons: impending job relocation, unexpected event in the family, etc. Sellers MUST be serious if they have their homes on the market during the Holidays!
Private sellers are not the only entities motivated to sell during the holidays. Financial institutions are often motivated to get foreclosure properties “off the books” before the end of the calendar year. A great opportunity for both investors and buyers looking for their next residence.
3. Tax benefits
This will depend on your financial situation, and what your tax liability looks like for the current calendar year. But closing on the purchase of a property, towards the end of a year, could give you major tax advantages heading into the following year.
If you itemize deductions, then you might be eligible, with the purchase of a home, to deduct things like points paid upon closing, property taxes and mortgage interest rates. Check with your tax professional!
4. Lower interest rates
Buying real estate in the holiday months does not guarantee you lower rates. Everyone knows that interest rates fluctuate and aren’t easily predicted based on the time of year.
But, historically, interest rates tend to be lower during the holidays. Mostly due to limited demand. There’s just less financial business being done in late November and December.
Home sellers aren’t the only motivated folks during the holiday months. Lenders, brokers, realtors — even inspectors — are often motivated to get a deal done before the end of the year.
This can help speed up the process that can take longer in non-holiday months. Most parties involved in a home buying transaction have incentives to finalize the deal as soon as possible and most are less busy during this time. Lenders want to close their books; buyers & sellers want to move.
The key is good communication. Buyers should work with agents and lenders as far in advance as possible to find out exactly when individuals are working and when they are OFF. Though there are few true “off-days” during the holidays, this doesn’t mean there aren’t other items that might be needed to close out a real estate deal that could take longer to get. Respecting all parties time is essential to smooth a transaction!
There is nothing easy about a real estate transaction. Buying during the Holidays might just make it a little easier than buying during busier months!
Provided by: Doug Doyle, Associate Broker
The Moving Experience Real Estate
27 W Loockerman Street
Dover, DE 19904
302-270-4135 [email protected]