photo credit: jsnover for Can Stock Photo
Holiday shopping is in full swing, but is this a good time of year to shop for a new home? The holiday season doesn’t typically coincide with the prime real estate season, but for just that reason, you may be able to make a holiday home purchase work to your advantage. Here are some reasons why:
Motivated sellers
Realtors and sellers know this is not a great time to list a home, so chances are, any homes that are listed have some very motivated sellers behind them, maybe due to a sudden job change that requires relocation, or a number of other reasons. This means they will not only be anxious to move quickly, but the property could go for a lower price than if it were listed in the spring or summer.
Less competition
The holidays come with a lot of travel and activity, and not much time or energy for things like shopping for a house. Fewer people looking means less competition in the event that you do find your dream house during this busy time of year, so you should have more freedom to negotiate and not feel rushed or pressured.
Better interest rates
The lack of activity in the market and lower demand may also mean you will get a lower mortgage rate than if you were borrowing while everyone else is. Historically, interest rates trend lower during the holidays.
Tax breaks
Finally, if you close on a home before the end of the year, you’ll increase your tax deductions on your upcoming return, due to the property tax you’ll pay, along with mortgage interest and purchasing costs.
Buying a home during the holidays may not be ideal for everyone. If you need to stay in a specific school district, or have other holiday related expenses, it might not work. Also, while there is less demand, there is also a smaller pool of homes available, and it’s possible you won’t find your dream home. But for those who can make it work, it can make a pretty big financial difference.
To get pre-approved for a home loan now, visit goldenstatemortgage.com.
Additional source: “4 Reasons to Buy a Home During the Holidays,” Vera Gibbons, Zillow Blog.