The NWM Blog
Written by Northwest Mortgage
Published on Fri, Oct 23, 2020, Last Updated on Sun, Nov 1, 2020
You want to buy a home, but each time you bring up the topic in front of others, they tell you from personal experience on when is the right time to buy a home. However, that only confuses you further, as each one has a different opinion on when is the right time.
“So, you tell me when the right time is?”
We have the knowledge and experience to answer your question. It’s the end of the year. We’ll give you reasons to support our answer and after that, the ball will be in your court. From there, you can decide whether you can wait until the end of the year to buy a home, and if you can’t, we can help you get your dream home now.
Buy a Home at the End of the Year— Our Reasons
Every season has its benefits and drawbacks. Summer is real estate’s busiest season whereas winter offers homebuyers incredible opportunities to buy a home. Late fall is also not too bad for buying a home and there are not a lot of homes on sale in winter, but it is still the best time to buy a home from a financial standpoint. Here’s why:
Tax Savings and Benefits
Are you self-employed? Are you in a higher tax bracket? If you said yes to one or both, you need every allowable tax deduction you can get. You can get it by becoming a homeowner at the end of the year, as it can reduce your tax liability.
Buying a home at the end of the year or closing on or before December 31st makes you qualified for mortgage-related savings and deductions. Your property taxes, mortgage rates, and interest costs and points will lower, and in return, your taxable income will be reduced, sometimes by thousands.
Sellers Want Their Home Sold Already
Hardly anyone comes out to hunt for homes at the end of the year. It’s cold and it’s the holiday season. No one wants to move into a new house in cold weather, particularly with the holidays around the corner. Staying put and waiting after the New Year seems more sensible to most prospective homebuyers.
Regardless of what season it is, sellers want to sell. You can take advantage of the lack of competition from other buyers and the sellers’ need to sell their home by buying a home at the end of the year. You can negotiate a better price, and since the competition is low, there’s a higher chance of the seller agreeing to the sale and accepting your offer.
The lack of homebuyers in the real estate market also affects builders. Builders attract prospective homebuyers to buy a home at the end of the year by offering extra incentives such as discounts, upgrades, paid closing costs, and discounts on asking price. This is how they increase sales and attract interest.
Affordable Moving Prices
Moving companies also know that business will be slow towards the end of the year. Since the demand for movers is less in the winter, they offer competitive prices to attract homebuyers. You may even get a discount for choosing a moving company.
If you decide to buy a home at the end of the year, look us up! Securing a pre-approval letter before house hunting can increase your chances of getting the keys to your new home. Contact us today.