A recent study from Attom Data Solutions showed that the best time for most home buyers to save (up to 7.4%) was in the winter months and buyers who closed on the day after Christmas realized the greatest below-market-value discounts of any other day of the year. Here’s why:
1. Less competition
Most buyers prefer to visit prospective homes in the warmer months of May, June, July, and August, which account for 40% of home sales. For the convenience of warmth—and the increased competition for available inventory—you may pay more than 7% higher for a home during these months.
While January and February make up less than 6% of sales, less competition may translate into more negotiating power for the Philly home buyer.
2. Motivated sellers
Sellers listing their homes in the winter often cannot wait until the warmer months when they can make a higher profit. For one reason or another, they need to sell now—empowering you with more leverage in your offer.
In addition, if a Philadelphia home is still lingering on the market from a summer listing, the seller may be more willing to accept a lower offer or give concessions, like assisting with closing costs.
3. Motivated movers
Since the warmer months are a busier time to move, you’re likely to be able to easily book movers on the exact day and time you need for a price less than if you were booking during peak season.
4. Tax benefits
If you can close on your home before the end of the year, you can enjoy additional deductions, such as mortgage interest, taxes, and points. Consult with a local tax professional to see what qualifies.
5. Faster settlement
A recent study from realtor.com found that lenders close faster during the holidays due to a 25-30% reduction in business. This means less stress awaiting your mortgage approval.
Need help buying a home or investment property? Contact Jim Armstrong of JG Real Estate.