Reason No. 1: Lower house prices
The best month to snag a deal when buying a home? October. This isn't just some random guess; it's based on RealtyTrac's analysis of over than 32 million home sales over 15 years. The data showed that on average, October buyers paid 2.6% below
estimated Market Value for their homes.
A house that would normally be $300,000, 2.6% translates into a $7,800 discount. The savings are nothing to sneeze at, so thrifty buyers should get hopping once autumn rolls around.Top of FormBottom of Form
(In case you're curious, the worst month for buyers is April, when homes sell for 1.2% above estimated market value.)Reason No. 2: Less competition
Most summer buyers have already found a home, meaning a fall buyer will have way less competition for houses on the market. Don't worry about those buyers who didn't close before August, either.
Many will drop out of the market until after the new year, giving a fall buyer even greater opportunity to roam at open houses. There may not be as many properties to choose from, but a little patience and perseverance could reap big rewards.
Reason No. 3: Home Sellers lose patience
Say hi to your friend, leverage. Sellers who have their homes on the market in the fall "are generally people who need to sell, which can make for better negotiations for the buyer," says Golden. If a home you have your eye on has been on the market all summer, you're really a step up as far as making an offer the seller can't refuse. The longer a home sits on the market, the more negotiating power the buyer has.
Reason No. 4: The holidays are right around the corner
Most home sellers are worn out after the summer selling season, they're also caught between a real estate rock and a hard place in that the holidays are barreling down on them. If they want to move and settle down in time to host Thanksgiving and put up their Christmas lights, they'll have to close, fast. Use this preholiday window to your advantage by offering to help them empty the nest fast if they cut you a deal.
Reason No. 5: Year-end tax credits
No one wants to buy a home only to make their accountant happy. There's a sweet added incentive to closing on a home at the end of the fiscal year. Come the following April 15, you might be able to take some nice tax deductions, including closing costs, property tax, and mortgage interest, to offset your taxable earnings.
Reason No. 6: More quality time with your real estate agent
As the year comes to an end, fewer buyers also means you should have the full attention of your real estate agent, mortgage broker, real estate lawyer, and everyone else on your house hunting team. You’re able to take your time to ask all those questions you have about earnest money, due diligence, title transfers, and more without feeling like you're horning in their busiest season to turn a profit.
Reason No. 7: Home improvement bargains
Once you close on that home you found, you may want to upgrade your appliances. Lucky for you, December is when major appliances—refrigerators, stoves, washers, and dryers—are cheapest, according to Consumer Reports. It's also the best time of year to buy cookware and TVs.