While most people are going over their Christmas lists thinking of things to buy for their loved ones and looking for the best possible deals and killer discounts, a certain group of buyers are out looking for something a little bit more expensive but will probably save the most money, relatively speaking.
The holiday season is not just a great time to get good deals on items that you intend to give as gifts but it is also the best season to buy a property. In fact, according to ATTOM Data Solutions, if you buy a house on December 26, you are most likely to save as much as $2,500 on its selling price. They also found that out of the ten best days of the year to buy a house, seven of them fall in the month of December making it the best month of the year to buy an investment property.
ATTOM’s senior vice president of communications, Daren Blomquist, says that around Thanksgiving is a great time to make an offer on a house given that December 21, 26, and 29 are all in the top ten dates to buy. It takes about 30 days to close a deal so the dates make sense. He claims that this is the real estate industry’s version of a Black Friday sale.
If you’re still not convinced and you still don’t want to whip out a home mortgage calculator just yet, here are other reasons why buying a house during the holidays is a sensible thing to do.
The Pro: You have very limited competition during this time.
Let’s face it, no one in his right mind would carve out days in his schedule to check out a few properties in the cold weather, right? They would probably be holed up in the comfort of their warm homes, sitting by the fireplace enjoying a nice warm cup of hot cocoa or eggnog, and telling Christmas stories to their children.
This is perfect because you get to have the market all to yourself. Imagine being in a buffet line without the line.
The Pro: You may get to enjoy certain tax benefits.
Another advantage that buying a property in December brings is the tax benefits. Closing a deal on a house before the end of the year can get you certain year-end tax deductions that you can take out on your tax return for that year.
It includes property taxes, loan points, and mortgage interest. The latter is very significant in this case because mortgage interests are usually high in the earlier years of a loan so this is a very welcome tax break for you and your family.
The Pro: Sellers are desperate to close deals.
During the holidays, when everyone else is out shopping for gifts and attending Christmas parties left and right, the ones who are out shopping for a property will be met by sellers who are desperate to make a sale.
Think of it this way: a seller who puts a property on the market during this time needs to make that sale. Most sellers and homeowners typically wait until springtime to put have their properties listed. This only means that properties that are listed during the holidays mean that they need the money for urgent reasons.
The Pro: You get a realistic view of the property.
To be honest, shopping for a home in the springtime is a lot more fun because you get to see a property’s full potential. The grass is green and the plants are blooming, The house is clean and the weather is pleasant.
However, house hunting in the winter lets you see a property at its worst, which is really a good thing because you get to immediately see what issues you will be faced with if you decide to push through with the purchase. You can easily identify which repairs need to be done if you buy the house which gives you an idea of how much you will need to spend on improvements.
The Pro: You can still negotiate for a lower price.
Lastly, since the competition is very minimal, this means that there is an oversupply of resources and very little demand. Whenever supply exceeds the demand in real estate, the prices will naturally drop. Given this, you are in the best position to still negotiate for a lower price. And with sellers desperate to make a sale during this time, the chances of you snagging a house at an amazingly incredible rate is very high.
Having said that, if you do decide to go house-hunting during the holidays and you find one that meets all your requirements, go for it. Even if it’s not your dream home, you can either make some improvements or sell it at a higher price. Either way, it is a sound financial investment to make.