The holidays are a time of festive activities for most people. Travelling, shopping, cooking, and family gatherings are some of the events most of us would think of. Few people would consider buying a home during the holidays. However, there are several benefits to purchasing a home during the festive seasons.
Low Market Activity
Lots of activities during the holidays focus on family, school, and celebratory events. Few people take the time to consider new housing. Most people direct their energy toward packaging gifts, stocking food and giving back to the community. Since fewer people overall are looking to buy houses, you will face less competition for your dream home during the holidays. You have a chance to land an opportunity that may not be available after the holidays. Homeowners working seriously to sell their homes are more serious, and may be more inclined to accept an offer.
When buying a home, finding a motivated seller can help you bargain the price of the house. After holidays, most sellers hope to achieve other goals such as buying new homes, paying off debt, or relocating. You can use the urgency to your advantage. Some sellers may be willing to negotiate the terms of the sale to a willing buyer.
End of Year Tax Breaks
Closing the purchase of a home at the end of the year can give you tax advantages. If the home sale closes before the 31st of December, you can deduct the mortgage interest, property taxes, and the interest cost. Even if you do not plan to purchase a home exclusively for tax advantages, reducing your tax bill is a welcome relief. The deductions, however, depend on your tax situation and should be consulted with a tax professional.
Better Interest Rates
Interest rates on mortgages and loans go through swings. Historically, interest rates tend to be lower during the holidays. The low interest rates are often due to low housing demand during holidays. While several factors affect this trend, there is a chance that you can secure a low interest rate during the festive season. However, remember that your credit score will impact your mortgage interest rates. Before deciding to buy a home, check your credit score and improve it before applying for a mortgage.
Besides home sellers, realtors, brokers, and lenders are also eager to close a deal before the end of the year. The sense of urgency brings with it increased speeds for processing home buying. Most parties involved in the home buying process have an incentive to close the deals as soon as possible so that they can break for the holidays.
As the year closes, there are few willing buyers and willing sellers at play in the market. Rather than viewing this as a disadvantage, you can use the holidays to find your dream home. With EXP Realty, you can find a great deal every festive season. Contact us today for more information.