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10 Tips For Buying Before End of Year

Brad Allen

After becoming a Realtor®, I quickly teamed up with my now partner, Mary Lane Sloan, to form The ART of Real Estate with the idea that one agent cann...

After becoming a Realtor®, I quickly teamed up with my now partner, Mary Lane Sloan, to form The ART of Real Estate with the idea that one agent cann...

Sep 30 6 minutes read

Would you buy a house if you found the right one, the timelines worked for you, and you could possibly save tons of money? If so, you'll find these tips/tricks extremely helpful.

Why is Fall a great time to buy?

People think April through August is the “selling season”. Which for certain situations it can be. For example, a high percentage of American’s with school aged kids tend to move more during those months than say November and December. But that doesn’t mean homes don’t sell the other 6 months of the year. So don’t buy into the whole “wait for Spring” if you are ready now, you may be passing up on a golden opportunity to purchase with some serious perks:

Less Competition + Less Rushing Around

For the past two to three years it’s been a strong, or borderline, sellers market. So that means there are more buyers than sellers. So what that really means is buyers have been running around crazy looking at homes as soon as they hit the market, making offers with little time to process, because they didn’t have time to really process it, as 10 others buyers wanted the house too.

By buying in the Fall, homes naturally take a little bit longer to sell and thus giving you a little more breathing room to make a calculated and conscious decision.

Sellers are Serious About Selling

The sellers who are out to “test the market” with inflated prices tend to pull their homes off in August. So the Sellers who are still in the market outside of the “selling season”, still really want to sell. I am not sure if they would necessarily take low offers, but I bet they’d be more open to entertaining any offer that was made.

Interest Rates, Interest Rates, Interest Rates

The 30 year fixed interest rates are some of the lowest they have ever been. Not motivated by interest rates? Ok. I guess you don’t like money. Because when interest rates rise from 3% to 4% on a $200,000 (with a $160,000 mortgage), your payment will increase $100 a month. I agree that’s not a huge deal or a big enough deal if you really don’t want to buy. But look at that number over 30 years and that’s $30k+ in additional interest. 

You Need Tax Savings

If you are currently renting, you don’t get a chance to take advantage of one of biggest tax deductions most American’s get, mortgage interest deductions. I know what you’re thinking. If I buy a home in November, I’ll only make 1-2 payments before 2020, so I am not really getting that much in tax deductions. I hear ya, but it’s more than you are getting if you stay in your rental. Just saying.

You May Lose If Your Lease Isn’t Up

You could. But you could also win. I’ve had Landlords allow people to move out early as it allows them to raise the rents sooner than they thought, and I’ve also negotiated deals where a seller will incentivize a buyer by paying the fee to break their lease. So don’t say no until you know for sure.

Builders May Pay You

So companies who build new construction homes are usually owned by huge corporations that are publicly traded. Do you know what publicly traded companies love by the end of the year? Less expenses, more sales, and more profit. So we often see builders offering deals, incentives and sometimes price breaks for buyers who will close by the end of the year.

Down Payment Assistance Options

Would you take money if someone offered it to you? A lot of Down Payment Assistance Programs run on a corporate calendar of September 30th, so a lot of their coffers just got replenished and they have money to lend. 

There are dozens and dozens of down payment assistance programs out there. Each one has their own requirements on who is eligible to get those funds. Are you a Police Officer, Firefighter, EMT, Teacher, Active Military, or Vet? We’re talking to you. Not one of those? Don’t worry, there are other programs that could work.

Moving Expenses Can Be Less

So if the majority of people buy and sell April to August, then statistically movers are less busy the remaining months. I tend to see moving companies offering more incentives and charging less to get as much business as they can during the Fall. So take advantage of it.

Time to Move and Unpack

Nothing is more tiring and makes buying a home not fun, than buying on a Friday and only having Saturday and Sunday to move your whole life across town. If you are like most American’s you tend to save your time until the Fall if you haven’t already used it. So if you have that time, and you decide to buy a home, it’s a perfect storm to make the moving process more enjoyable.

Renovations and Upgrades

As with movers, all ancillary real estate related companies are also a little bit slower, so if you decide to buy a home that needs as little as a paint job or as much as a renovation, contractors are more responsive during the slower months. Thus saving you time and money.

Has buying before the end of the year been on the brain?

If so, reach out to Vanessa, our Client Match Maker, so she can introduce you to one of our awesome agents, and together y’all can see if your situation really lends itself to buying this Fall. 

If you’re still not quite ready to pull the trigger, I’d still encourage you to reach out to Vanessa, and still let her get you with one of our agents, again at no cost, to learn about how the buying process works in this market and to formulate a game plan that suits your situation. 

I can’t tell you how many buyers we have met with, and once they hear how the process works says “man had I known that, I would have bought months ago. So don’t be that person, be proactive and hopefully save money.

Curious About Buying? 

Get paired up with a Realtor to start strategizing your home search and be in a better position to buy.

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