Lower prices, less competition, and pumpkin spice lattes…here are the top 5 reasons why fall is the best time to buy a home:
It’s not a surprise that spring and summer get all the real estate glory as the best seasons to buy a home – they are certainly the busiest and most competitive times of the year to enter the real estate game. However, recent trends are showing that fall is quickly becoming a great season to find the perfect home, if not the best. Here’s why:
- Lower Home Prices
According to RealtyTrac’s analysis of over 32 million home sales over the past 15 years, October buyers – on average – pay 2.6% below estimated market value on their homes at the time of sale. On a $300,000 home, this equals a $7,800 discount. Compared to spring’s 1.2% average above market home prices, bargain hunters should get hopping once autumn rolls around.
- Less Competition
Another reason to wait for autumn to roll around? Less competition. Like the beach after Labor Day, the real estate market clears out as the days turn crisp. Most summer buyers have already found their home in a much more competitive market, meaning fall buyers will have less competition for the homes still circulating on the market. Another bonus? Sellers tend to wear down the longer their home is on the market meaning that fall buyers also have leverage on their side. Sellers who have their homes on the market in the fall are generally people who need to sell their home – resulting in favorable negotiations for the buyer.
- Serious Sellers
While some homes on the market are summer leftovers, not all homes are. Fall sellers might simply be listing their homes because the time is right. They might need to sell because they were having their home built, and now it’s ready or they need to move because of a job transfer. Regardless of the reason, fall sellers tend to be more serious meaning that buyers could negotiate a more beneficial deal before the holidays roll around.
- Year-end tax credits
Lower home prices, less competition, and favorable negotiations make the home buying process seem like a dream for fall homebuyers. Another added incentive? Year-end tax credits. According to David Hryck, a New York based financial expert, tax adviser, and lawyer, “Property tax and mortgage interest are both deductions you can take for your whole years’ worth of income, even if a home sale closes in December.” Fall home buyers could look forward to significant tax deductions including closing costs, property tax, and mortgage interest.
- End-of-year sales
More often than not, home buyers want to make improvements in their new home. The perk of buying a home in the fall? Year-end sales. Fall holds sales across the board on home improvement supplies ranging from carpet and paint to new appliances. Home buyers could settle in and use the money they saved from purchasing their dream home in the fall to start renovating right away!