When buying a home, timing can be everything. If you’re looking to purchase a home before the end of the year, the holidays can play a big role in how the purchasing can happen.
Buying during a holiday season can have both pros and cons. For example, there are usually fewer buyers during the holidays, so real estate agents and sellers are more motivated to sell. Closing before the end of the year has potential tax benefits as well, as you may be able to write off closing costs or property taxes. You can also see the home in a different environment than you may have been able to before. Viewing it in colder months can demonstrate if there are any drafty rooms, if the doors get jammed in icy conditions, if there is water leakage, or if there are any other concerns you may not have noticed in warmer weather.
Some cons, however, are that home inventory is oftentimes lower in the later months of the year, and while real estate agents may be more motivated to sell, they may have less availability. Inspectors and lenders are sometimes less accessible during the holiday season, as they may be taking off more time to celebrate with family and friends. Having fewer homes on the market can mean more competition for buyers and make it a more difficult market to navigate. And upfront housing costs, like moving expenses, a down payment and closing costs can make an already expensive time of year more challenging.
So, what can you do to make holiday season homebuying as easy as possible?
Enlist a good agent
A good real estate agent will help you remain motivated and will do most of the heavy lifting. They will stay connected with both you and the seller to keep communication lines open. And while inventory may be low, a good agent will be sure to know what is coming up for sale based on their networks. Choosing an agent that is well connected in the area you’re looking for your home is important.
Get prequalified
Before looking at homes, make sure you work with your lender to get prequalified. That way, you know the price range you’re looking in and can confidently make an offer after finding a home you love. Keep the lines of communication between you and your lender open, and update them often on your home buying progress.
Plan ahead
Plan for if or when your inspector, appraiser or real estate agent will be gone. Many of the people you’ll work with will be taking time off to spend with their families and friends, but if you know that in advance, you can work around their schedules. It also helps to have a real estate agent that has a team behind them so even if they’re gone, you can work with one of their colleagues to get the offer in as soon as possible.
Be aggressive
If there are fewer houses on the market because of the holidays or winter season, be sure you’re prepared to be aggressive. You may not be able to wait to put in an offer on a home you like, and you may need to put in something at a higher price point than you thought. Know what you want and what your top price is, and be aggressive with your offers. Be sure your real estate agent is keeping you on top of what’s happening so you can plan accordingly together.
If you keep these tips in mind, and work with your real estate agent and mortgage lender, you can get into your dream home before the year ends.