While most people buy in the summer when the weather is great and the kids are out of school, some of the best deals occur during the off-season. In fact, the end of the year is a great time to become a first-time homeowner or close on an investment property or vacation home.
As the year comes to an end, here are seven great reasons to close on a home before the end of the year when most people hibernate on property deals. Don’t miss out on these special perks.
1. Capitalize on Motivated Sellers
December is a cold, wet month in many areas of the country and most people don’t want to worry about moving under these conditions. With the holidays underway, many don’t want to make a big purchase at the end of the year, so they postpone buying a home until the new year. This means there’s a smaller pool of buyers which isn’t always great news for sellers.
When the pool of buyers is smaller, this can work to your advantage by giving your more negotiating power when submitting an offer. If a seller doesn’t get much foot traffic or interest, or if they’re looking for a quick sale or to downsize, they may lower the price or offer to pay some or all of the closing costs. A seller may also throw in a home warranty or other incentives like appliances.
2. Save on Taxes
If you’re in a higher tax bracket or are self-employed, every allowable tax deductioncan help. If you buy a home before the end of the year and close by December 31, you can lower your tax liability with mortgage-related deductions. These deductions include property taxes, mortgage interest, and interest costs. Tax deductions can reduce your taxable income and potentially save you hundreds.
If you close after January 1, you can still take advantage of these deductions. You just have to wait until the following year when you file your taxes.
3. Less Competition from Other Buyers
Real estate naturally slows down during the fourth quarter due to inclement weather, school, and the holidays. This means you have less competition when new homes come on the market with fewer competing bids. With less competition, you may experience a more relaxed buying experience and get a better deal on a property than you would during the summer months.
4. Competitive Moving Prices
If you’d like to hire a moving company, now is the time to book them. The spring and summer months are the busiest seasons and will cost you more due to a higher demand. Since some moving companies aren’t as busy this time of the year, they are likely to be more motivated to get your business and mayoffer a discount to stay competitive amongst other local services.
5. Access to Affordable Contractors
The end of the year is a slower time for home contractors, including inspectors, plumbers, electricians, and roofers. With less work on the books, your renovation or repair projects may be completed faster and at a lower cost.
6. More Time to Move & Unpack
Planning a move and unpacking your home can be quite the process when you’re also juggling full-time work. Ideally, you’d plan a move when you have extra time off work.
Many companies shut down one or two weeks at the end of the year. If your employer offers time off during the holidays, this may be the perfect time to buy so you have more time to move and unpack before heading back to work.
7. More Perks & Advantages of Owning Real Estate
Regardless of when you buy a home, you’ll get to enjoy the many benefits that come with homeownership, including:
- Own your own place – No more paying rent! Your mortgage payment will go toward something you own. When you own your own place, you can decorate how you wish and make updates to the flooring, kitchen, and bathrooms.
- Build equity – In the beginning, much of your mortgage payment goes toward the loan interest. Once you start making a dent in the principal (through remodeling or market appreciation), equity builds up in the home. This allows you to take out loans for additional property investments, college tuition, etc.
- Earn an income – As a real estate investor, buying another home gives you a consistent rental income cash flow. This serves as a great source of long-term financial security.
Ready to explore your end-of-year options? Speak with a real estate agent at Amelia Island Plantation Real Estate about the great condo and single-family home options for year-round, vacation, or long-term rental investments.
