5 Reasons For Fall Home Shopping
Autumn is my favorite season! The aroma of pumpkin spice fills the air with the sounds of high school marching bands at high school football games. The taste of apple cider has arrived and so have haunted houses (clowns anyone?). Prospective buyers should be excited for another reason this fall – home shopping! It makes perfect sense and here are five reasons why…
Buyers, this is your time of the year! Home sale prices typically hit their peak in June and July in most markets. Though oddly enough, July ’17 and Nov ’16 in the Greater Scranton area were the two high points for median home sale prices over the past twelve months.* In autumn, sales prices of homes will begin to dip, many home-sellers will retreat and buyers who need to buy could be in a great position given a good shot of perseverance!
Statistically, according to RealtyTrac’s fifteen-year study of over 32 million homes from two years ago, the best month to purchase a home is October… Bargain shoppers, tis the season!
More bad news for sellers: Typically if you’ve had your home on the market throughout the summer selling season and you’d prefer not to carry that mortgage payment through the winter in addition to those heating costs, then you unfortunately may find yourself in a compromised negotiating position. Better negotiating power is in the hands of the buyer, especially when the seller includes his/her home in an array of weak fall inventory – an inventory which generally consists of people who need to sell.
Off-peak times such as fall and winter present opportunities for buyers to ask for contingencies or perhaps less favorable terms as part of the agreement of sale and get away with it.
Vanished, The Paradox Of Choice Has
If you have too many choices you run the risk of making a poor decision, or at the very least one you might regret down the road (this happens to me if I ever must purchase jarred pasta sauce). Too many houses on the market (not an issue this past summer), can create a surplus of options ultimately leading to negative results for buyers. Under normal spring/summer real estate conditions where a plethora of choices exist, buyers might, under the stress from the competition, make a hasty decision. During those years, shopping in the fall can be your antidote to the paradox of choice.
Where’s The Competition?
For some buyers, if having your children in their new school district at the start of the school year isn’t absolutely necessary or if doesn’t affect your job, then moving in November or December can actually prove to be financially beneficial. We’ve heard it said by the National Association of REALTORS® and others that the best time to buy a home is when inventory is high, but the reverse can actually be true for purchasers who don’t have restraints in place and have patience. If you don’t care if you move in the summer or not, then you might want to consider saving that extra cash with an autumn purchase.
We’re talking an average savings of over $8,000 from summer to fall.**
Owe Less To The IRS
A home purchase before the end of 2017 can save you money by reducing your tax bill in 2018. You might be able to take tax deductions such as property tax, mortgage interest and/or mortgage points/closing costs to offset your taxable income, if you close on your home by year’s end. Furthermore, during the early years of your loan when you’re paying more interest and less principle, the mortgage interest deduction can have a significant impact on your return. Owing less is more!
As you can see there’s a variety of ways a homebuyer can save money and face less anxiety during fall. Even though some of it may be at the expense of homeowners who presently have their properties on the market, buyers need not have a sense of guilt about these types of savings. You take them wherever and whenever you can in the wonderful world of real estate. With the holidays quickly approaching, buyers can surely use some extra cash in their pocket.
* 2016-17 Statistics from the Greater Scranton Board of REALTORS®