Editor's Note: This post was originally published on September 16, 2015. Housecall continues to share this piece due to ongoing requests and reader interest.
As we close out a summer marked by rising home prices and limited supply, we’re conditioned to expect the inevitable end-of-season slowdown. But the change of season doesn’t mean activity drops off completely – in fact, fall’s arrival presents opportunities for homebuyers, in part due to a “back-to-school mentality,” according to a survey by ERA Real Estate.
If you’re a prospective homebuyer, tap into that renewed sense of motivation – and consider the following perks – while hunting for a home this fall.
You can enjoy year-end tax breaks. Buying before the year’s out allows fall homebuyers to take advantage of tax breaks such as the mortgage interest and property tax deductions. “There are certain deductions that can be claimed by homeowners only,” explains 1040Return.com Founder John Gregory. “If you have taken out a homeowner’s loan, consider these deductions as Uncle Sam’s gift to you.” To learn more about the tax benefits available to homeowners, click here.
You can sidestep the multiple-bid minefield. Bidding wars dominated low inventory markets this summer, but competition tends to wane as activity slows in the fall. With fewer folks searching for homes, fall homebuyers can spend less time chasing supply and more time finding – and getting – the perfect home.
You may have more bargaining power. Aside from less competition, fall homebuyers may have the opportunity to purchase their home of choice at a reduced price, especially when negotiating with sellers who had hoped to unload their homes over the summer.
Related Link: If Your Home Didn’t Sell This Summer, Don’t Despair – Fall and Winter Are Great Times to Sell, Too
You’ll be home for the holidays – literally. As ERA reports in their survey, fall homebuying activity is also fueled by emotional motivation. “As vacations wind down after Labor Day and people become more focused, the desire to be in a new home for the holidays is a historically strong driver of fall home sales,” says ERA President and CEO Charlie Young.
Agents: Is the fall slowdown hurting your business? Say goodbye to peaks and valleys and hello to year-round sales success with tips from our August webinar here.
The fall brings a more deserning buyer less regrets in the long run because they are not necessarily motivated by the market.They are reflective and tend to be personally and intellectually motivated,
Interesting insights Susan. Thanks for sharing.
All the social media regarding home buying/selling are valid comments. However, a much unattended approach is being totally ignored; that being the near future of an economic downturn which could drop real estate as much as 50% or more. Taking a look at the world economy and that of our own economic pitfalls of an enormous debt, high
risk loans,increase in first and second mortgages, large due to refinancing 5-7 years payment increase on a second, I would predict that we will see an increase of defaults. Look closely before buying a home. The waiting game may be in your best interest, especially over valued/underwater purchases when you buy. There will be NO equity for many years to come, hence no chance to refinance.
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The Fall is a good time to buy a home!
Let’s consider this:
30 year mortgage interest rates around 4 percent, that’s good … about $477 per month (Principal $144 & $333 Interest) for every 100,000 in mortgage. In my area there are many well priced homes and less buyers to compete with compared to the Spring market. Sellers are more willing to negotiate at this time of the year. In my opinion, this is a very good time to buy. If not, just continue to rent and pay your landlord’s mortgage. Make sure you follow all the landlord’s rules and regulations, other wise you may be evicted and have to buy a home anyway.
Contact your accountant or financial adviser, see what they would advise about buying a home.
Home ownership is an investment, but it’s also a lifestyle choice and usually a good decision for most people.
The defaults in my area are less than 2% and the homes that do default are mostly due to homeowners who have over-financed their homes.
By the way, I have been a Realtor for the past 30 years and home owner for the past 38 years who believes in Home Ownership.
Having equity will depend greatly on where one lives. I purchased my home just under 2 years ago and the value has grown $8,000 – $10,000 per year. I live in the Central Fl region. When leaving a comment, it might be better to consider the locations. The market here, in general has increased above the 4-6% average.
Really valuable post!!
After reading this, I also feel that fall is a good time to buy a home…and i ‘ll do the same 🙂