There’s no need to wait until springtime to start shopping for your new home. Not when the holiday season provides several advantages for homebuyers!
From reduced competition and motivated sellers to potential cost savings and tax benefits, here are five compelling reasons to buy a home during the holiday season.
1. Fewer Other Buyers to Compete With
The housing market historically slows down during the holiday season because fewer buyers are looking to make a move this time of year. Lots of buyers wait to close on homes during the summer when the weather’s nicer and the kids are out of school. If you’re willing to shop for a home and move between November and January, you don’t have to compete with the flood of summertime house hunters.
Lower buyer competition gives you more leverage. In contrast to the busy summer season, holiday buyers are less likely to:
2. Highly Motivated Sellers
Sellers know that it can take twice as long to sell during the winter than in the summer. But they probably still want to close the deal quickly so they can move on to the next chapter of their lives. In fact, sellers who list in the fall might be anxious to get settled into their new homes before the holidays.
Sellers also know that there are fewer buyers in the market during the holidays. All of these factors combine to give you highly motivated sellers who are likely willing to work around your terms. Depending on your local market conditions, holiday-season sellers might agree to:
3. Potentially Lower Prices
It’s fairly common to find more homes for sale than active buyers during the holiday season. This temporary imbalance in supply and demand can result in seasonal price dips.
Buying at a lower price comes with several advantages. Firstly, of course, you save money on the purchase. But then you can also save in interest expenses if you’re able to take out a lower home loan thanks to the lower price. Additionally, the temporary decrease gives you a chance to capitalize on the value increases that we normally see in the spring and summer. For example, a home that you can get for $500,000 in the winter may be worth $525,000 come summertime. That’s $25,000 added to your net worth simply by purchasing during the holidays!
4. Increased Tax Advantages
For most buyers, purchasing a home comes with some tax advantages. For example, you may be able to deduct certain closing costs, property taxes, and mortgage interest from your taxable income to reduce your income tax liability. But there is an additional tax benefit of buying during the holiday season: if you close the deal before the end of the calendar year, you can claim these deductions when you file your income tax return this coming April. This means you receive the benefit of your tax advantages a full year sooner than if you were to close after January 1st.
Note: because taxation is so complex, you should discuss your unique financial situation with a tax professional before making any decisions.
5. Potentially Faster Closings
Not only are sellers motivated to close quickly during the holidays, but the professionals who facilitate your purchase are also more likely to be available to help you close your deal quickly.
In the summer months, home inspectors, appraisers, surveyors, title researchers, and loan officers can have a line of buyers waiting to be processed. But with fewer buyers in the winter, these professionals may be able to process your deal faster. This means less time spent waiting, and quicker access to your new home.
How to Make the Most of Your Holiday Season Home Purchase
Now that we have explained why the holidays are a great time to buy a house, let’s discuss a few tips for holiday home buyers.
- connect with a loan officer or apply online at Keller Home Loans.
- Find a local real estate agent so they can start combing the market for you.
- browse house listings online from the comfort of home.
- Studies show that buyers are less stressed and more satisfied with their purchases when they have fewer options to choose from.
How Keller Home Loans Can Help
Keller Williams is your one-stop shop for a smooth home purchase this holiday season.
The expert real estate agents at Keller Williams provide step-by-step guidance for your home search and purchase negotiations while our knowledgeable mortgage lenders help you secure a home loan that works for you.
Give yourself the gift of a new home this holiday season with Keller Home Loans!