When it comes to the best time to buy a new home, it may seem that summer gets all the attention. For families, the chance to transition to a new home makes the most sense when the kids are out of school. Summer also has the advantage of fewer holiday festivities to work around when house hunting and moving. However, fall offers great opportunities for those who can make the transition to a new home after the summer buying frenzy.
Why You Should Buy a New Home this Fall
Lower Home Prices
According to data from a RealtyTrac analysis of more than 32 million home sales over 15 years, October is the best month to get a great deal on a new home. RealtyTrac’s data showed that on average, October buyers paid 2.6% less than the estimated market value for their homes during that month.
To put the savings into perspective, a buyer who wants to purchase a new home priced at $300,000 would save $7,800 at a 2.6% discount. Nearly $7,800 can buy new furniture or pay for moving services to make your transition easier. The savings is a great reason for homebuyers to take action on a new home in the fall. If you’re curious to find out if there’s one day that’s the best to get a great deal, try October 8th. Data shows that buyers can get a home for 10.8% below estimated market value, on average.
Summer has historically proven to be the most popular time of the year for home sales. During the fall season, there are fewer buyers on the market vying for housing inventory. That’s because most summer buyers have already found a home. Often, buyers who didn’t close on a home by August will drop out of the market until the following summer.
Sellers Need to Close
After the summer ends, sellers become increasingly eager to sell their homes. That’s because many sellers expected to sell during the summer. Rather than take their homes off the market and wait for the next summer, they will often be more willing to negotiate their sales price to make the sale. If you see a home that’s made it through the summer, then you may find it much easier to negotiate the sales price.
Many sellers are eager to sell their homes after summer to get to where they want to be by the holidays. Nobody is eager to spend the holidays unpacking boxes or enjoying a turkey dinner in an unfurnished home. So buyers can take advantage of the fall season to get a great deal on a new home.
Year-end tax credits
Buying a new home before the end of the year can provide a tax incentive for buyers. When tax time rolls around, a home buyer can enjoy tax deductions such as closing costs, property tax, and mortgage interest, to offset your taxable earnings. The tax savings can mean a buyer saves even more on a new home.
Year End Sales
An often overlooked benefit to buying a home in the fall is year-end sales. In terms of real estate, new home builders often offer great discounts and incentives for buying one of their products before the end of the fiscal year. Buyers should start touring neighborhoods at the end of summer so that they know where to go when fall comes.
Don’t forget about retail sales at the end of the year. A new home will often need new furniture, appliances or home maintenance and repair items. Retailers typically offer the best deals at the end of the year.
If you think you want to buy a new home this fall, reach out to David Brodsky Properties for a complimentary real estate strategy session. Our real estate strategist will help you start to develop a sound strategy for your real estate success this year. Although the consultation is free, an in-depth assessment from an experienced real estate strategist can help save you a bundle.
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