Toys and electronics aren’t the only things that go on sale during the holiday season- home prices tend to drop as well. Depending on your situation, the holidays can be an excellent time to go home shopping! Here are a few of the pros to Home Shopping during the holidays.
1) Less competition leads to lower prices, and less bidding wars.
During the holidays, many families are busy with get-togethers, parties, visitors and shopping. So, for many, house hunting during the holidays is less than ideal. This is one reason that traditionally, the peak seasons for real estate is the spring and summer, and bottoms out around the holiday season. Just like traveling, if you travel during peak season, you pay extra. If you travel during the “off-season,” you get special rates. Traditionally, the same is true for real estate.
2) Holiday vacation time makes it easy to coordinate schedules.
House hunting is time consuming; there is no doubt about it. If you are buying a house with someone else, it can be difficult to coordinate schedules, and sometimes you may even have to view houses without the other. During the holiday season, most people already have vacation time, so many couples opt to shop when they both have time off so that they can see homes together.
3) Just in time for Tax Credits
If you purchase your home before December 31, you are eligible for tax deductions for the following year. Talk to a tax professional to find out the ways to maximize these deductions.
4) Sellers are Motivated
Home buyers and home sellers that stay in the market during the holiday season tend to be serious and motivated, because it is remaining a priority despite other obligations and activities. Working with a motivated seller is great because they have their eye on the prize. The sense of urgency for a motivated seller can help during negotiations, setting closing dates, and asking for necessary repairs.
If you do intend to buy a home during the holidays, go easy on the shopping spree. Not only will you need to save for closing costs, down payments, moving costs and any repairs that need to be made in your new home, you also need to keep a careful eye on your credit. Any significant changes in your credit wave a red flag to loan underwriters, even if it is during the holidays.