Look Out for Home Buying Opportunities This Year!

Author: Source Capital | | Categories: Best Mortgage Rates , Commercial Mortgages , Debt Consolidation , Home Equity Line of Credit , Home Equity Loans , Mortgage Brokerage , Mortgage Brokers , Mortgage Financing , Mortgage Renewals , Mortgage Services , Private Mortgage , Purchase Mortgage , Residential Mortgage , Second Mortgages

Blog by Source Capital

The National Association of Realtors recently released a report, stating that the housing market experienced steady growth in September.

However, real estate veterans will tell you that the market generally experiences a slowdown during the holiday and winter months.

If you’re a buyer, this can be a great advantage!

A slowdown in the real estate industry means less competition, quicker mortgage application approval, motivated sellers, and many other benefits.

Here are the top 5 reasons why the holiday season is a great time to purchase a house.

  • 1. Reduced Competition from Other Buyers

    Most buyers prefer the summer months to shop for their homes due to the unfavorable weather conditions.

    There’s less competition from other buyers with few people looking to buy homes.

    As a result, buyers don’t have to fight heated bidding wars for the houses they like, unlike what they’re accustomed to doing in the summer months.

    While there’s plenty of supply, demand is rather low during these months, which means buyers have more leverage during their negotiations.

  • 2. Home Sellers Are Committed to Making a Sale

    Many homeowners would much rather spend the holidays with their family members and friends, instead of listing their house on the market.

    Homeowners that list their homes during the winter are serious about selling. They’re prepared to negotiate and will compromise in areas like closing costs and price.

    They can also offer other important concessions, like furniture or appliance, which can come in handy.

    However, you need to exercise control over your emotions as well.

    Sellers are known to stage their houses to increase the chances of a sale. Staged homes get sold 73% faster on the market. A well-decorated house can mask a lot of problems, which you may overlook inadvertently. Ensure you don’t fall for it.

  • 3. A Quicker Mortgage Approval Process

    Mortgage lenders experience a slowdown in their business during the holiday season as well.

    This is great for homebuyers since lenders are incentivized to approve loan applications faster.

    Since they don’t have to deal with many applications during these months, your application could be approved faster than usual, putting you in a better position to negotiate terms while buying a house.

  • 4. Sizeable Tax Advantages

    Buying a house offers a significant tax break, which is a great incentive for many buyers looking to move on from renting a place.

    Waiting till January means that the tax break can only be claimed during the next year.

    But closing the sale before Dec 31 allows home buyers to claim tax benefits like property taxes, mortgage interest deductions, and closing expenses.

    These deductions can come in handy, especially during the initial months of the mortgage.

  • 5. Houses Are More Affordable

    The housing market generally hits the bottom during the last few months of the year. Lower prices mean that buyers can score great deals if they know where to look.

    As stated earlier, holiday sellers are serious about selling their houses. If they’re prepared to engage in the cumbersome process of selling their house during this season instead of going out to party or indulge in some shopping, it means they’re more motivated to sell the house.

    Buyers have an advantage here as they can negotiate for lower prices on properties they wouldn’t have ordinarily been able to afford.