The holidays may not be the most popular time to buy a home, but with lower buyer competition, motivated sellers, and year-end tax benefits, there are some good reasons to consider hitting “pause” on decking the halls and high-tailing it to some open houses! So, if you’re in the market, take note of these benefits and give your agent a call. December just might be the most wonderful time of year … to be house hunting!
Bargain prices
The final month of the year is known for frantic shopping, but not necessarily for purchasing a home - this can work in your favor. With fewer buyers in the marketplace, the available homes for sale are priced to sell. That means there's also less likelihood for multiple offers, bidding wars, and escalator clauses.
Flexible schedules
There's no need to wait until the weekend to cram eight house showings into your schedule. Rather than using up those precious weekends, take an end-of-year vacation day on a weekday to check out available inventory. Chances are your agent has some time on their hands as well and would appreciate staying busy throughout December.
Motivated sellers
If a home is on the real estate market in December, there's usually a specific reason the sellers are looking to move: it could be job relocation, financial hardship, or personal change of circumstance. Regardless, it gives you an opportunity to negotiate a sweet deal - ask for a closing date that works with your schedule.
Tax benefits
Purchasing a home in 2016 is good for your bottom line when tax time rolls around. If you close by Dec. 31, you can deduct property taxes, mortgage interest, origination points on your loan, and interest costs - all while building equity on your home. These deductions can be huge money savers, especially in the early years of your loan when you're paying off interest.
Lending lull
With everyone off celebrating the holidays, December is traditionally a lean month for mortgage brokers. That gives you an advantage in building the best possible mortgage you can. Since there are fewer real estate transactions, loan officers may be motivated to offer special incentives and possibly waive or reduce origination fees. With so few loans in the pipeline, underwriting turnaround times will be quick. You may be able to negotiate a better price with the seller if you’re able to close the purchase in under 30 days.
Vendor availability
A moving company’s December calendar usually resembles a ghost town. Not only will you be able to secure movers on short notice, but with competition for prime time slots (weekends) nonexistent, you could probably score a deal as well. Ask the movers to consider throwing in additional packing materials and boxes at no cost.
Builder incentives
If you're building a new home, ask about holiday incentives! Builders typically roll them out to finish the year with a bang. If upgrades such as custom cabinets, quality carpeting, and designer paint colors are on your wish list, December may be the ideal time to purchase a new-construction home. With fewer units sold throughout the month, the last few days of the year are particularly important for sales.
Adapted from Trulia's article:
https://www.trulia.com/blog/when-to-buy-a-house-reasons-to-buy-a-house-in-december/