Buying a home over the holidays.
The countdown to Christmas and other celebrations in full swing, but if you’re faced with with a situation where you need to move, i’m here to share why buying a home over the holidays may actually not be such a bad idea. (In fact, it’s a pretty good one!!)
While most people may be out shopping for holidays gifts or the latest electronics, as a home buyer, now is truly one of the best times of the year to get into that new home you’ve been hoping for.
Although putting in an offer close to Christmas may not be ideal for everyone, it’s important to note that not everybody celebrates the holiday. It may not be an optimal time to consider moving here in Canada, especially in the midst of cold, snowy weather BUT that doesn’t mean you can’t secure the home of your dreams and move during the early spring.
I’m getting ahead of myself, however!
Here are a few top reasons why buying a home over the holidays is actually a great opportunity for you.
more motivated seller
This isn’t a guarantee, but if a home owner is trying to sell their home during the holidays, there is a good chance there is a reason for it. It could even be downright compelling.
– Maybe they bought another home in the fall and haven’t sold yet.
– Maybe they’re relocating.
– Maybe they lost their job and can’t afford to keep it.
– Maybe they are ending a relationship or marriage and need to split the asset.
Whatever the reasonn may be, if they are listing over the holidays, they could be a little extra motivated to make a deal with an interested buyer. This is helpful to consider when you’re putting together your offer.
Now, if the home you’re looking at is facing foreclosure then you may even have the opportunity to save a little more money. Oftentimes, a bank will want to get a property off their books before the end of the year. If this means they have to lose a little with a lower price, they could be willing to negotiate and accept what you’re offering.
less competition and inventory
In light of the way the market has shifted over the past 6-8 months, you’re probably well aware that there is still low inventory on the market. People who were considering selling their homes may have shied away thinking “it’s not a good time.”
Although demand may be down from the beginning of the year, inventory is always traditionally limited over the holidays. There could be fewer people selling less homes because they are busy with their own personal commitments.
Don’t look at this as an obstacle. It could very well be the reality that gives you the upper hand in a negotiation. Sure, there could be a bit more work involved to organize the professionals involved in supporting a deal such as a broker, appraiser and inspector, but they could also be faced with less buyers and in turn less work, so that means less competition for you across the board.
What does this mean for you as a buyer when you’re considering buying a home over the holidays? Lower inventory and competition equals the opportunity to negotiate a better price and more favourable terms.
How about that for a little “miracle on 34th street?”
competitive mortgage rates
There is no denying that the cost of borrowing has gone up A LOT. In fact, mortgage rates have more than tripled since the spring – so any chance to get a deal now is in your benefit.
Historically, rates do tend to dip a little over the holidays since there is less demand for lending. This means you could have more of a chance to get an interest rate adjustment during this timeframe. There are no guarantees, of course, but favourable financing may be found with lenders trying to hit their year end targets and are very happy to approach them over the holidays.
end of year tax benefits
Everyone’s situation is different but for those buying a home over the holidays, it’s a good idea to see how your tax exposure could be shaping up for filing early into the new year. If you end up buying a property before year end, then there could be great tax benefits.
If you’re looking at buying an investment property rather than a primary residence, there could be even more opportunities to save. Before you do anything, the best recommendation is speaking to your accountant.
quick closing
Just because you’re buying a home over the holidays doesn’t mean you necessarily need to move right away BUT if you want to, there is a good chance you can have a quicker, smoother closing, if that’s what you want to negotiate. A lot of third party professionals like lenders, inspectors and insurance companies also want to close their books before the end of the year so they may prefer a quick closing also.
When I bought my first house, I closed in two weeks. That wasn’t over the holidays, but it shows that a quick closing is definitely possible. It just depends on the time line that you and the seller are working with and trying to come up with something that’s mutually beneficial.
If you’re looking at buying an investment property rather than a primary residence, there could be even more opportunities to save. Before you do anything, the best recommendation is speaking to your accountant.
From a seller’s perspective, here are some of the topline pro’s and con’s of listing over the holidays.
In term’s of pro’s:
– generally much lower competition from other listings
– serious, eager buyers
– more time for showings
– your REALTOR® may have more time to dedicate to you
With regards to con’s
– you could receive low offers
– it’s harder to keep your home looking good if you’ve got snow, salt and water to deal with
– there are likely less buyers looking
– there could be delays with banks and financial institutions
– your REALTOR® may not be available
No matter what your preference is, if you’re thinking of buying a home over the holidays or after the new year, it’s still an investment in your future. There is no need to delay if you’re ready to seize the day!
If buying a home is at the top of your Christmas list or one of your new years resolutions, let’s talk! I can be reached at 647.896.6584, by email at info@serenaholmesrealtor.com of by filling out the simple contact form.
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