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Here Is Why The End of the Year Is the Best Time to Buy a Home

If you are like many, you have been putting off your home purchase until the frantic real estate market we have experienced for the past year and a half calms down.  That fact is, that has already happened, if only on a temporary seasonal basis. This brings me to the point of this article, which is that no matter if we are in a buyer’s or a seller’s market, or the buyers market, the end of the year is the best time of year to buy a home.  Why?  Read on to find out.

End of the Year = Great Time to Buy a Home

Reason #1:  Tax Savings.  You will pay less out of pocket at closing when you close in December than if you close just a few days later in January.  This is because current year taxes are a significant part of your closing costs and are prorated between you and the seller at closing, where they pay from Jan. 1 through closing day, and you pay from closing day through 12/31.  This means that, if you were to close on 12/30, you, the buyer, are only responsible for 2 days worth of taxes at closing.  Close just 3 days later on 1/2/2022, and you are now responsible for 363 days worth of taxes.  Granted, you will end up paying the entire 2022 tax bill anyway if you close on 12/30/2021, but you will not get that bill until the END of 2022 rather than having to pay almost all of it upfront at closing.  Depending on the taxes on the property you are buying, closing in December can save you THOUSANDS in terms of what you pay out of pocket at closing.

Reason #2:  Motivated Sellers.  Traditionally, the most popular time of year to move in during the spring through mid-summer, because school is out, and this is PCS season in the military.  This means that there are fewer buyers competing for homes for sale, which ALWAYS benefits the buyer.  While it is also true that there fewer homeowners selling this time of year, the relatively few that are selling are selling because they NEED to sell.  This also benefits buyers.

Reason #3:  Builder Incentives.   I will keep it real here.  We are still in a sellers market as of today, so do not expect a whole lot from builders right now in terms of closing incentives; however, many do have year end quotas they want to meet, so they may offer to pay closing costs or offer free upgrades, but only if you close before the end of the year.  This may not be information they will initially volunteer, but that is just one benefit of having your own agent when buying new construction – to use my experience to ask the right questions and possibly even save you a little bit of money.

Reason 4:  Available Mover/Home Inspectors:  Typically, I might not even mention this as a good reason to buy at the end of the year, but because of the current worker shortage, and the busier than usual real estate market, even a small drop off in the number of homes being sold, means it will be just a little bit easier to find available movers, available home inspectors, or for the bank to find an available appraiser in a timely enough manner to be able to close on time.

The bottom line is that, while home prices are not likely to fall anytime soon, the market is not as competitive now as it was a couple of months ago, and interest rates have nowhere to go but up, so while the market is still tilted slightly in favor of the seller, now through the end of the year can be a great time of year to buy a home, especially for those who want to keep their out of pocket due at closing as low as possible.

If you are ready to get prequalified and take advantage of the potential end of year savings, please call me anytime at 706-726-2981 or email, and I will be happy to answer any questions you have or connect you to a reputable local lender.

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