Benefits of Buying a House at the End of the Year

Benefits of Buying a House at the End of the Year

Is It Better to Buy a House at the End of the Year?

The best time of year to buy a house is during the fall and winter—specifically between October and February. While the precise month can vary based on where you live in the U.S. and the current market/economy, October and November are generally the best months for house-hunting.

The real estate market generally slows down after the busy summer season, which gives buyers more negotiating power. While you may be worried about your housing choices, many options, including new construction properties, are still available. It is important to note that we understand that personal readiness, market conditions, and other external factors may compromise whether winter or fall is the best time for you to buy a house.

In addition to having more negotiating power, other benefits of buying a house at the end of the year include:

  • Builder incentives. If you plan to buy a new construction home, the builders may also be willing to make certain concessions or offer incentives because they often have quotas they have to meet before the year’s close. Commonly, during the fall and winter, buyers are offered extras or free/reduced price upgrades to incentivize them into buying.
  • Less competition. As we mentioned, summer is the most competitive season for real estate. By buying a home at the end of the year, you eliminate some of the competition (even in competitive markets).
  • Less stress. In summer and spring, some buyers make rash decisions because they don’t want to lose out on a house. However, because there is less competition, you feel less pressure to rush into decisions or give into stress while house hunting.
  • Motivated sellers. While the market is currently very competitive, some sellers may be worried about whether they will sell their home before the end of the year; if they want to purchase a home and take advantage of the end-of-year tax benefits or have had their house on the market for longer than they wish, they may be willing to accept a lower bid or make certain concessions.
  • Mover availability. During the summer, movers are often booked for at least six weeks out. With college students moving in or out of their apartments or dorms and the busy market during the time, you may struggle to find movers if you purchase a house in the spring or summer. If you buy a home in fall or winter, you won’t have to rely on yourself or family to move into your new property and will more easily be able to secure a moving company or rental equipment.
  • Payment consistency. Your landlord can legally increase your rent at the end of your lease. However, mortgage payments are more consistent (if you have a fixed-rate loan). Having more consistent payments going into the new year can help you with your financial goals and budget.
  • Tax benefits. If you close before December 31st, you can deduct your mortgage interest, property taxes, interest costs, and points on your loan from your taxes. These benefits can be a great financial benefit, especially if you are taking out loans to purchase the house.

Contact Our Real Estate Closing Attorneys

In Georgia, you must have a real estate closing attorney manage the closing process. At Balbo & Gregg, Attorneys at Law, PC, we are committed to helping our clients smoothly navigate the closing process. Our licensed, highly qualified attorney can help ensure you understand what is happening during the transaction and support you from the beginning to the end of the process.

Backed by over 40 years of experience, you can trust our team to help you with the purchase of your home. Contact us online or call (866) 580-3089 today to get started.