While it may not seem appealing to shop for and buy a home during the holidays, you may want to consider it. Holiday bargains are out there and if you’re willing to inconvenience your holiday plans, you could move into the perfect home for your family by the beginning of the new year. To better convince you of your potential benefits, I’ve outlined five reasons to buy a home during the holidays:
Less Market Activity
The holidays are known for fewer real estate transactions. How come? Family, school and work activities, as well as the weather. However, in Texas, we seldom have to worry about ice/snow storms affecting our plans. As fewer people are looking to buy a home, you will likely have less competition for the house you want to purchase – removing the possibility of a bidding war. This gives you leverage. A chance for you to negotiate a lower price, sooner closing date, closing costs included, etc.
More often than not, sellers listing their home during the holidays do not have another option – i.e. job relocation. Or, their home has remained on the market for several months. The urgency or impatience to sell can work out in your favor. Motivated sellers are more willing to negotiate.
Potential Tax Advantages
By itemizing your taxes, you can deduct any points you paid upon closing. Plus, property taxes and mortgage interest. However, you should always consult a tax professional before assuming. As it turns out, your deductions, among other things, are used to determine whether it is better for you to close before or after year’s end.
Better Interest Rates
As the demand for housing is low during the holidays, some lenders will lower their interest rates to be competitive. Use this to your advantage to secure a lower interest rate!
Since all parties have an incentive to complete the transaction before the end of the year, you will likely enjoy a fast closing. Well, faster than usual. Also, expect for the process to go smooth – as there are fewer transactions taking place during this time.
While these factors can lead to a bargain deal, don’t expect that to be the case all the time or in every location. Consult a mortgage lender, tax professional and real estate agent before assuming you will get a deal during the holidays.
Give me a call if you’re considering buying a home in the Cedar Park or Leander areas this holiday season!