Is the holiday season a smart time to buy real estate?
It’s common knowledge that summer is the peak home buying season. The rest of the year can be a little cloudy for those new to the business, and regular homebuyers and sellers. Having said that, could now actually be the most amazing time of year to snag a great deal on a new home or investment property?
There is no doubt that there is a lot going on at this time of year. From mid-November through the end of the year, there is plenty of shopping mayhem, vacations, entertaining, days off, and extra work to pick up. Some may find this a maddening time to try and fit in a little house shopping, but there are some tremendous reasons why many savvy homebuyers wait until the last six weeks of the year to scoop up incredible deals.
Sales, Sales, Sales
Black Friday and holiday sales often start before Halloween is even over. Real estate sales have slowly been working their way into the mix of these deals, at least since 2010. Savvy shoppers will find marked down properties, upgrades on new homes, and discounts on a variety of additional services. All of this can add up to some pretty serious savings.
The deadlines for racking up tax breaks are looming. Many can find huge tax breaks by buying homes and investing in real estate before the end of the year. This can easily add up to tens of thousands of dollars. Most would agree that it’s far better to put that cash into an accumulating asset for yourself than to needlessly hand it over to the tax man.
Real estate makes an awesome gift. It’s virtually unbeatable. How do you top a new home, romantic beach cottage, family estate, new business headquarters, or income producing investment property?
Take Advantage of the Distractions
The distractions of the holidays can actually be a good thing for buyers. Most would-be buyers are off celebrating; shopping for things that will be thrown away in two weeks, overeating, and generally being distracted by the shiny decorations. That puts a lot of pressure on sellers that need to cash out, and especially those that want to cash out to fund their holidays. The weather can also be a turnoff. This is all incredibly important, especially for those that have found competition from other buyers has held them back the rest of the year.
Real Estate Professionals are More Motivated
Real estate professionals typically work on a per deal or commission basis. They also have quotas and end of year numbers to make. This can make them very motivated to cut deals and work hard to get them done. Use that leverage.
Unfortunately, while this is a fantastic time of year to buy real estate, and save thousands doing it, this can be one of the toughest times of year to get deals closed. The last two weeks of December can be complete mayhem, as different workers go on vacation and shuffle files. If you aren’t closed before the middle of December, expect there to be some quirks and delays. Don’t let this stop you from saving a pile of cash and buying properties with more equity. Be prepared for this, be ready to be patient. If you are using financing, don’t waste a minute.