by VIBE Realty
on Monday, October 21st, 2019 at 2:23pm.
Everyone knows timing is everything. Increasingly, fall is emerging as the best time to buy a house. There have been more than 32 million home sales since 2000 and it’s been found that buyers get the very best price in October. Rule of thumb that everyone seems to be familiar with though, is that Spring is typically the notorious time to buy a home. And while history has always seemed to favor that scenario, it seems that autumn has undeniable factors that just may contribute to the timing of your big purchase. The best time to buy a home is when market conditions are preferable, competition is low, and interest rates are on the decline. Here are a few expert insights as to why you should consider possibly investing in real estate this time of year.
Fewer buyers on the market - Let’s start with the obvious component - there’s less competition. Perhaps one of the most daunting parts of looking for a home is the competition that comes along with it. In the spring, everyone is out making offers and just when you fall in love with your dream house, someone else may have snatched it up before you even had time to adjust your offer. So while competition is lower in the fall, inventory is still good. This inventory may even have better prices because perhaps those properties didn’t sell in the spring/summer - and with school starting, families spend less time house-hunting, giving you an advantage in the market.
Rates are near record lows - If you’ve been keeping tabs on mortgage rates, you’ll know rates have been dropping like the leaves outside. A lower rate means you'll pay less over the life of your loan. It also equates to more purchasing power: You'll be able to afford a higher-priced home if you want one.
You’re in a better place for negotiations - Typically when sellers put their house on the market this time of year, it’s because they may be in the middle of a job transition, or other compelling reasons that lead them to be much more serious about selling. If the home you want has been on the market for a couple months, you have higher negotiation power because by this time, the seller may simply be worn out and ready to sell.
Take advantage of tax breaks - If you can close on your new home before the year’s end, you’re eligible for an attractive tax deduction next April. “Property tax and mortgage interest are both deductions you can take for your whole year’s worth of income, even if you closed on your home in December,” says David Hryck, a New York, NY tax adviser, lawyer, and personal finance expert. “Any payments that are made prior to the closing of the loan are tax-deductible. This can make a serious difference in the amount you owe the government at the end of the year.”
Harsher weather tends to show more flaws - Fall is a time of year when many home problems start to reveal themselves. After a rainy August, inspectors are able to identify serious leaks and water issues. It’s also easier to detect poor insulation with colder temps causing pipes to freeze. Negotiating over remedies could bring down the price and allow time to winterize the home.