With an ever-changing housing market, you can never be too certain when it’s the “right” time to buy a home, but purchasing a home before the New Year could offer you more opportunities as a home buyer. Discover the perks of buying a home before 2017.
Tax deductions & savings:
By taking advantage of buying a home before the new year you may become eligible for many tax benefits, including maximizing your tax deductions, which can overall help you save.
According to Realtor.com, “If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant, especially in the early years of your loan when you’re paying off a lot of interest.” If you’re considering buying a home before the new year, consult with a tax professional to help determine your best options.
Ringing in the New Year could also mean ringing in new interest rates. Although mortgage rates are constantly changing, it’s a safer bet to buy now while rates are still low!
New home for the holidays:
The holidays can be busy, but what if you could be in your new home before they begin? By opting for a move-in ready home or quick-move in home, you have the opportunity to be in a brand new home right in time for the holidays.
Planning your move can be difficult, but luckily, if you get time off from work during the holiday season you might find it to be a convenient time to make your big move.
Less competition means more of an opportunity to buy the home that you fall in love with. With colder weather and the busy holidays ahead, it’s less likely that people will have as much time to go out and search for a new home.
While it may depend on the location of where you live, the weather can also play an important role in home buying trends. According to Fannie Mae, The National Bureau of Economic Research suggest that warm weather may have a more positive impact on home sales. It’s not to say that one might not like a home during winter, but the season its self could affect the way a home buyer perceives the home.
This could be a major opportunity for you as home buyer, to put aside the weather of the winter season and search for the home you’ve been wanting. With less competition, it’s easier for you to buy the home you’re interested in without worrying about bidding wars or multiple offers.
Just like most people don’t want to be searching for a home during the holiday season, you might find sellers more motivated than usual to sell their home before the new year. Time:Money says, “If a home is on the market in December, there’s usually a specific reason sellers are looking to move; it could be a job relocation, financial hardship, or a personal change of circumstance.” With fewer offers on the table, sellers might be more willing to drop their asking price or leave room for negotiation.
Not only are individual home sellers motivated, but builders are just as motivated when it comes to selling new homes at the end of the year. If you’re looking to buy or build a brand new home, don’t forget to ask about year-end incentives and savings. From closing costs to upgraded features, you might be able to get more bang for your buck at the end of the year!