Real Estate Tips for Buying a Home This Fall Real Estate Tips for Buying a Home This Fall
Thinking about entering the home purchase market this fall? While spring and summer are traditionally considered to be the busiest months for homebuying, fall may be an opportune time to buy a home -- especially for first-time buyers.
From less competition to more affordable price points, there are a range of reasons that the fall housing market can be the perfect time to start your house hunt. Let's get into it!
1. Less Competition
As we mentioned above, spring and summer are the busy seasons for the home purchase market with the most houses for sale and the most prospective homebuyers in the market. This means that come the fall season, there are fewer buyers in the market which can present unique opportunities to those buyers that are shopping for a home starting in September. In addition to having fewer fellow buyers in the market to contend with, less competition also means that fall is a great time to negotiate on properties. Sellers are likely receiving fewer offers on their homes during the fall months which gives buyers more leeway to negotiate on purchase price and other terms.
2. More Time to Buy
During the prime homebuying season of the spring and summer, buyers will often find that they have to make quick decisions on whether to put in an offer on a home that they like -- sometimes within a few hours after seeing a home for the first time at a showing -- due to higher interest and competition. Another benefit of buying a house for a home in the fall is that with less competition, buyers will likely have more time to deliberate before having to put an offer in on a property or risk missing out.
3. Potential Price Cuts
If a home is for sale in the fall, there's a chance it's been sitting on the market since the summer (or longer). If this is the case the seller may be preparing to drop their home price, or be more open to negotiating with sellers -- these factors can be particularly impactful if mortgage rates are elevated. If you see a property that has a price cut, your real estate agent will have valuable knowledge about local market conditions and can likely do some investigating on your behalf to find out why. Some common reasons for reduced prices on homes are that the property was overpriced when initially listed, an offer that was in place fell through, or that the seller's life circumstances changed creating greater urgency for them to sell their home. This sort of information can help inform you when determining how much to offer on a property with a price drop or one that has just been on the market for a longer period of time.
4. Potential Tax Advantages
If you close on a home before the end of the year, you can potentially deduct property tax and mortgage interest for your year's worth of income. Generally, any payments made prior to closing on your home and mortgage loan are tax-deductible and can make a notable difference in the amount you owe the government at the end of the year. If you're planning to purchase a home in the fall, it can be worthwhile to consult with a tax professional to determine what potential tax advantages you might benefit from.
5. More Attention from Real Estate Agents
If you're working with a real estate agent in the spring or summer, the high likelihood is that you're far from their only client. What this means is that on any given weekend when you're out hitting the open house circuit your agent may or may not be able to tag along to answer any questions you have or offer advice on a particular property you're looking at. Conversely, if you're shopping in the fall real estate market your agent will almost certainly have fewer clients and as a result will have more time and attention to devote to you and your home search. The same goes for other professionals that you may be looking to contract when buying a home like moving companies and mortgage lenders.
Get Started on Your Homebuying Journey
Whether you’re starting your homebuying journey in the fall, winter, spring, or summer, Leader Bank’s team of expert Loan Officers are here to help you achieve your homeownership goals! Start your journey by getting a rate quote today!
