For most of us, the holidays are a marathon
There are demands from our families, kids and communities. Shopping to do, presents to wrap, baking to get done. We’re also trying to stay on top of our workload and meet year-end deadlines. Few people need the additional stress of buying or selling a home, uprooting their families and moving during the holidays, yet for those who may need to buy or sell or are otherwise motivated, November-December may represent significant advantages.
The holiday season may provide home-buying bargains for five good reasons
1. Less Market Activity
Family, school and work activities, combined with the weather in many locations, translate to fewer real-estate transactions during the holidays. Fewer people looking for homes in our Bay Area inventory-constrained marketplace mean less competition for your preferred house. Bargains may be available, and listed prices may be more open to negotiation.
2. Motivated Sellers
Those who are putting their homes on the market at this time of year often have a critical need to sell, such as an upcoming job relocation. This urgency may work to your advantage to extract a lower price and/or other concessions like paying part of the closing costs.
3. Potential Tax Advantages
If you itemize your taxes, you can deduct any points you paid upon closing plus property taxes and mortgage interest. Even though you do not want to make a decision on a home purchase strictly for tax reasons, it could be to your benefit to close before the end of the year. Consult a tax professional to determine if this deduction is more advantageous for this year or whether it would be better to roll it into the next.
4. Better Interest Rates
Many factors can affect interest rates, and you never know what socioeconomic/political issues will emerge to affect interest rates in the new year. It may make sense to leverage the here and now.
5. Faster Closings
Everyone wants to complete transactions before the end of the year. Lenders want to close their books, real estate agents want to receive their commissions before year-end and sellers want to move on to their new homes. Everyone wants closure for the holidays. High motivation plus fewer transactions paves the way for a smooth, rapid closing.
The dynamics change if you’re trying to purchase a home in Tahoe or Aspen . . .
If you are trying to buy a home in a trendy, high-priced winter ski resort area such as Tahoe, Aspen or a similar winter destination, ignore the above; these dynamics become meaningless, except for the tax implications. For the majority of Americans, however, the holidays do represent an opportunity to buy a home under favorable conditions.
Thinking about buying a home during the holidays?
Are you thinking about buying a home during the year-end? Or maybe you’ve had a promotion or have been transferred and need to sell and relocate in time to start a new job in the New Year. I’ve worked with many clients completely virtually. I take care of the details; you take care of your life. I understand the East Bay real estate market. Contact Parisa Samimi. More than 20 years of comprehensive industry experience.