5 Reasons To Buy This Fall
When you think of home buying in the fall, your first thought tends to be less inventory to choose from. What if your first thought was low mortgage interest rates and less competition? Here are 5 reasons to buy a house this fall even if there are less homes on the market. They say sometimes less is more, right?
1. Old inventory may mean deals & motivated sellers
Sellers tend to put their homes on the market in the spring, often listing their homes too high right out of the gate. This could result in price reductions throughout the spring and summer months.
These sellers have fewer chances to capture buyers after Labor Day. By October, you are likely to find desperate sellers and prices below a home’s market value. [Source: Zillow]
Also, often people who list their home in the fall need to sell because of a job transfer or other compelling reasons, so you’re in a better place for negotiations.
2. Fewer buyers are competing
Families who want to be in a new home by the beginning of the school season are typically no longer shopping at this point. That translates into less competition and more opportunities for buyers.
With the chance of less bidding wars on properties, you’ll have a little more time to mull over the decision on which home is right for you. Keyword: little.
3. Sellers want tax advantages before year end
If you can close on your new home before the year’s end, you’re eligible for an attractive tax deduction next April. Deductible items include closing costs, property tax and mortgage interest. All of these can add up to big savings in the amount you owe the government. Even if you close on your new home in December, you can deduct property taxes and mortgage interest from your entire year’s earnings. This alone can motivate a seller to take a deal when it is getting down to the wire. [Source: Select Quote]
Tip: Ask why the seller is selling, and look for listings that offer incentives to close before the end of the year.
4. Homes can’t hide their flaws (as easily)
The dreary fall and winter months tend to reveal flaws, making them a great time to see a home’s true colors. It’s better to see the home’s flaws before making the offer, instead of being surprised months after you close. In fact, the best time to do a property inspection is in the rain and snow, because any major issues are more likely to be exposed. For once you’ll be saying “thank you” to the cold. [Source: Zillow]
5. Low mortgage rates
The economy is healthier than at any time in decades, especially based on unemployment numbers. Incomes are up. Inflation is down. Interest rates are low. According to Freddie Mac, the average nationwide 30-year fixed rate just hit 3.6%, about 2 percentage points lower than expected by now. To put that into perspective, you would save over $300 per month on a 10% down, $350,000 loan with that 2% rate drop. [Source: The Mortgage Reports]
There is the chance rates drop even more in 2020 but there is also the chance they rise. With this in mind, you can weigh your options on if you jump now with the crazy low rates or see which way they go next.