Most people buy and sell homes in the spring and early summer. But fall is actually a great time to buy a home. And this fall is especially a great time, as interest rates are still at their historical lows. The Federal Reserve’s Federal Open Market Committee (who sets the Fed Funds rate) is strongly hinting at a possible rate increase in December, which could mean rates are on the way up. NOW is the best time to buy and lock in a great rate. Learn more about why fall is great time to buy with this post from the PrimeLending blog.
Springtime is notoriously the best time to buy real estate, but that doesn’t mean it’s the only good time to purchase a new home. Buying during the fall season can prove beneficial for homebuyers for a number of reasons.
Here are a few key reasons why you should consider buying a home during fall.
Better Deals on Leftover Spring and Summer Inventory — Fall generally means a lower inventory of available homes, however, those homes may be more affordable. Homes often go on the market during spring, but those that don’t sell immediately will likely see a series of price reductions during the summer months and into the fall. In some cases, buyers may even find a home that is priced below market value.
Less Competition — One of the primary reasons spring and summer are more popular for buying homes is that families are looking to get into a new home before a new school year begins. Once school starts at the beginning of fall, fewer homebuyers are looking to make a move, reducing the competition for those who are looking to buy in fall. Less competition means you won’t get into a bidding war on the home you want.
Seriously Motivated Sellers — As the end of the year approaches, many home sellers are motivated to sell and close by December 31 in order to take advantage of the tax benefit. The coming holiday season may also increase a seller’s motivation. If you’re looking at a home for sale near the holiday season, you can bet the seller is very motivated because the last thing a homeowner wants is for the home selling process to interrupt holiday plans.
Year-End Tax Breaks — The tax benefits aren’t exclusive for home sellers. Particularly for first-time buyers, searching for and closing on a home before the end of the year will allow you to save money come tax time. Homeowners can yield dividends in tax returns — both mortgage interest and property taxes are deductible from gross income. Any payments made prior to the closing of the loan are also tax-deductible.
Beating Mother Nature — As far as seasons go in the housing market, winter is the least favorable for buying or selling a home. Nobody wants to worry about icy roads or snowstorms on moving day. Make your purchase during the fall, or wait until springtime rolls around when Old Man Winter is gone for another year.
Better Service from Real Estate Agents — If you want time and attention from your real estate agent, wait until the peak real estate season is over and your agent — as well as other service providers, such as mortgage lenders and title companies — aren’t quite as busy. In waiting, you’ll experience fewer delays and service issues and the more of the personalized one-on-one time you’d expect from the professionals walking you through this major life decision.
Get What You Need for Your Home For Less — It’s not only the cost of the home you should consider; what about prices on all those items you’ll need to make improvements to your new home? According to Consumer Reports, September is the ideal time to buy carpet and paint. In October, lawn mowers are on sale and in November, you can find the best prices on appliances.
It’s Easier to Negotiate — When a seller is motivated, they’re more likely to negotiate with a buyer. The stress of selling a home is only amplified as the holiday season draws near. Buyers can take advantage of the seller’s urgency during negotiations.
Flexible Move-In Dates — When the holiday season rolls around, sellers are more likely to negotiate closing dates to accommodate holiday plans.
Always keep in mind that the best time to buy is ultimately the time that is best for you and your family, no matter the season. Hold out for the home you want. When the time comes, don’t be tempted to place a bid out of your price range for fear of losing out on the home. Before you begin the process, know what kind of house you need/want and how much house you can realistically afford. Then, stick to your budget. Getting prequalified for a home loan will give you the freedom to act when you find the home you want.
If you’re thinking about buying a new home this fall, contact a PrimeLending home loan expert in your area to get prequalified for a home loan and to learn about your options.
From the PrimeLending blog by Mandy Jordan