Ahhhh, fall. It’s the time of year for pumpkin lattes, pumpkin patches, and cooler nights. Floridians look forward to a break from the humid days and anxiously await the ability to relax outdoors without dripping in a puddle of sweat! There’s more to love about this time of year if you’re on the hunt for a house. Many people think that spring is the most active season in real estate. However, October has been proven to be the optimal month for home buying. RealtyTrac’s analysis of more than 32 million home sales over 15 years showed that October buyers averaged paying 2.6% below the estimated market value for their dream homes. In fact, it gets even better! The infographic further breaks down the best days to buy a home; nearly all of them falling within the fall months. Let’s delve into three reasons why purchasing a home in the fall makes the most sense for your budget!
#1 Less Competition
The more buyers there are looking in a particular area, the less likely you are able to score a deal on the house you want. Odds are, there are several interested buyers for that particular house, and this gives the seller the upper hand during negotiations. This spells bad news for you. Most buyers tend to start house hunting in the spring and summer months. Families with school-aged children tend to settle into their new house before the school year begins. To avoid competing for offers, wait out this active market period and buy in the fall.
#2 Motivated Sellers
Once the activity of the spring and summer months fizzles out, remaining properties are left to sit on the market for longer periods than intended. Houses that were priced too high tend to receive price reductions and sellers begin to entertain offers less than the list price. As the year draws to an end, sellers want to move on before the chaos of the holidays ensues. The thought of packing everything in boxes around a time that should be spent gathering with families is just as unappealing to them as it is to you. Use this to your advantage as a bargaining tool.
#3 Holiday Deals
We’re not talking deals on houses, per se. Though, you’re likely to see lower list prices during this time. We are talking about all of the end-of-the-year shopping deals on home goods, appliances, furniture, etc… Stores release their Black Friday deals and homebuyers can find some seriously discounted prices on items needed for upgrades, repairs, and cosmetic fixtures. Consumer Reports details what the time of year dictates as far as pricing is concerned. Coincidentally, September proves to be a good time for paint purchases; October for mattresses; and televisions and appliances are cheaper in November. Thank you, Cyber Monday!
It’s also worth mentioning that homebuyers receive tax breaks and certain advantages. You can deduct property taxes and mortgage interest for an entire year’s worth of income. This applies even if you closed on your new home in December! All of these advantages make buying a home in the fall a smart choice. Whether you’re a first-time homebuyer, a buyer looking to upgrade, or a buyer looking to downsize, purchasing a home is a big step.
Knowing when to buy and where to buy are important factors to consider. Equally important, is working with the right realtor who will negotiate and advocate for you in order to help you find the house that is the perfect fit for you. Contact me when you’re ready to “fall” in love with a new home!
Your Neighborhood Expert, Bettina Guild