Buying a property is not one of the popular holiday activities. However, there are a number of reasons like year-end tax advantages, motivated sellers and lower buyer competition to go house hunting in this traditionally lean period. There are a lot of good reasons as to why you can snap up property.
As a buyer, you may find sellers motivated around this time of the year. There can be a definite reason for this, from job relocation to change of circumstance. Financial hardship can also be a major factor. It also provides an opportunity to make a tidy gain. Lowball the listed price and request a closing date which is in accordance with your schedule. Purchasing a property may also come with tax benefits. If the whole process is completed within December 31, then a whole range of tax deductions can work in your favor. These include property tax deduction, mortgage interests and also the loan’s origination points. Such deductions can save a huge amount of money. This is especially true during the lean early years when you are intent to pay off all interest.
Properties are cheap at the end of the year. The last period of any year is known for endless holiday parties and impulse shopping- not for buying a home. This can go in favor of the buyer. Since the marketplace has fewer buyers, the listed homes come with an enticing price. Another flipside is fewer active buyers and less chances of bidding wars and multiple offers. There can be escalator clauses as well.
Other plus points
Another reason to buy a property during the holiday season is the benefit of flexible schedules. There is no point to spend the whole day looking at houses. Wastage of the available weekend is avoided by going on a house tour on a weekday. There is an even chance that the property agent will also be glad to show you around as the real estate professional would have less work at this time.
For mortgage brokers, December is generally a lean month. This helps in getting best possible mortgage. Loan officers, in the light of fewer number of real estate, may offer you special incentives and may possibly reduce or waive the origination fees. Turnaround times will be quicker. It will be possible to come to an agreement if the purchase can be completed within 30 days.