Can I Get A Better Deal? By Dan.

By
Real Estate Agent with Keller Williams Realty DTC

Happy Thanksgiving Everyone! I hope you are having a wonderful Holiday weekend.

Some buyers were thinking about purchasing a home and wanted to know if they should buy and close in December or in January. Basically, they wanted to know if they would get a better deal if they closed before the end of the year. I said yes, they very well could get a better deal if they closed before the end of the year and here’s why:

•  If you’re looking at a bank-owned property or a builder, they would love to get as much inventory off of their books before the end of the year as possible. This is probably the best time of year to do some deal making.

•  Private sellers that have their home on the market during the Holidays need to sell and are very motivated. They may be even more motivated to get out of that situation before the end of the year so they can move on with their life and start the New Year off right.

•  Sellers also understand that there are not a lot of people who are out looking at homes in December. So if they get a buyer looking at their home, sellers know that they are a “real” buyer and not a looky loo.  As a result, the seller doesn’t want that one lone buyer to go away and is ultra-motivated to negotiate.

•  There is not a lot of competition in December for homes, again due to the decrease in buyers in the marketplace. That means more choices for buyers that look to close before the end of the year and less competition for the premium properties. Its Murphy’s Law that just when you get interested in a property and are ready to make offer, a second or sometimes even a third offer comes in. There is far less of a chance of this happening in December.

I always enjoyed looking at homes during the Holidays. I enjoy seeing the ways people decorate their homes and how they celebrate. It really is a great time of the year to buy a home and one of the best times to get a great deal.

Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.coloradodreamhouse.com/denverpost

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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Dawn Crawley 11/22/2010 08:45 AM
  2. Dub Walters 11/22/2010 09:16 AM
  3. Jon Quist 11/23/2010 11:42 AM
  4. Gene Riemenschneider 11/23/2010 12:57 PM
  5. Sandy McAlpine 11/23/2010 01:18 PM
  6. Debbe Perry 11/23/2010 04:12 PM
Topic:
ActiveRain Community
Location:
Colorado Denver County Denver
Groups:
Metrolist®
Tags:
marketplace
holidays
thanksgiving
private sellers
the market
home sellers
builder
home buying
home purchase
fuller sothebys
dan polimino

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Rainer
285,506
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Kimo's Lifestyle Solutions

This is a great time to buy especially for executive and luxury homes in desirable communities.

Nov 23, 2010 11:34 AM #32
Rainer
22,193
Thomas Minetti
Handyman Services - Ashburn, VA

Now is the time because the rates are still SO LOW and the Banks are really just trying to get it off the books for the end of the year....

Nov 23, 2010 11:48 AM #33
Rainer
37,647
Michael Emerson
Keller Williams Realty - San Juan Capistrano, CA

November and December seem to be a time for fewer, but more serious, Buyers and Sellers. During this time you get to enjoy the festive holiday atmosphere, the bad news is the sometime inclement weather. Well everywhere...except southern California.

Nov 23, 2010 11:49 AM #34
Rainer
27,883
Ana & Melissa SW Illinois Real Estate Brokers
RE/MAX Preferred - Belleville, IL

You're absolutely right... it's a perfect time.  Hopefully sellers will keep the walks clear!  Thanks for the post.

Nov 23, 2010 12:03 PM #35
Ambassador
672,925
Karen Crowson
Alain Pinel Realtors, Pleasanton, CA - Livermore, CA
Livermore Wine Country Homes
That's very true. Interest rates are predicated to rise next year so that's one good reason. Another is that there may be tax benefits to buying now (Buyers should check with their CPAs). In our area though, the trick is finding the inventory if you're home purchase will be at the lower end of the scale. Those good deals have been moving at a decent pace.
Nov 23, 2010 12:20 PM #36
Rainer
61,352
Vianey Ojeda
The Hanover Group | kw® - Rancho Cucamonga, CA
Making a Complex Market Simple - TESTSELLYOURHOME.

so true Daniel plus not to mention that some Buyers may greatly benefit from the Tax write-off(s) as well.  

Thanks for sharing  

Nov 23, 2010 12:39 PM #37
Rainmaker
1,266,352
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Great Post.  This is a great time of year to shop for a home.  I have done a lot of business this time of year myself.

Nov 23, 2010 12:55 PM #38
Rainmaker
542,458
Cynthia Larsen
Safe Haven Realty | 707-332-2560 | Serving all of Sonoma County, CA - Cotati, CA
Independent Broker/Owner

Dan - I love working during the holidays when everyone else is taking time off ... you can really find some gems for your buyers during that time!

Nov 23, 2010 02:15 PM #39
Rainer
11,260
Brian Jergenson
Keith Dressel Realty - Gaylord, MI - Gaylord, MI

Thanks for suggestions for keeping home on the market Dan.  I like to tell people, the last three times I moved it was in winter.  In fact, we put our first home on the market Dec 26 and accepted an offer on it Dec 29.  So don't tell me people don't buy homes during the winter holdiay season.

Nov 23, 2010 03:44 PM #40
Rainer
192,907
Debbe Perry
Real Living Carolina Property - Morganton, NC
828.439.3084 Morganton/Lake James NC

Such good advice, and in my experience, all true! I've had my best selling week between Christmas and New Year's before, and those who are pre-qualified, serious buyers (not just "tourists") tend to be very motivated!

Just getting ready to hit the re-blog button!

Nov 23, 2010 04:08 PM #41
Rainmaker
296,568
ARDELL DellaLoggia
Sound Realty - Kirkland, WA

You may want your client to check with their accountant on that advice. The long standing accountant recommendation has been make the offer in December, but close in January. That could give you the benefit of easier negotiating in December BUT the potential added tax benefits of closing as early as possible in the year.

The one time only up front deductible costs may be wasted without at least 6 months worth of interest and RE tax deductions going with it. To exceed the Standard Deduction, and benefit from those one time only write offs, accounts usually recommend closing as close as possible to the first of the year and not later than end of June.

Remember...even if the seller pays those deductible costs, they are deductible by the buyer and not the seller.

Whether or not someone should close before the end of the year or after the first of the year is personal to each seller's tax considerations...and more importantly almost always better for a buyer to close in early January than in December, for income tax reasons.

The higher the closing costs (i.e. points paid to buy down the rate) the more important this is.

 

 

Nov 23, 2010 04:16 PM #42
Rainer
22,163
Nicole Fleming
FC Tucker Emge - Henderson, KY

I agree that this is a great time to show your home off.  Normally, it's decorated so cheerfully that people can't help but feel good seeing it as long as you don't overdue it with exterior hanging lights, etc.  Throw in the smell of cinnamon and fresh baked cookies and you've got a recipe for a sale.

Nov 23, 2010 05:23 PM #43
Rainer
56,607
Dennis & Terri Neal
RE/MAX, Big Bear - Big Bear Lake, CA

My crystal ball is cracked...if you are going to live in the home the best time to buy may be now. You can't let every market fluctuation determine when you buy.

Nov 23, 2010 05:57 PM #44
Rainmaker
580,729
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Daniel, I like your reasoning!  I like looking at houses any time of year but there is a certain air in November and December. 

Happy Thanksgiving!

Nov 23, 2010 10:29 PM #45
Rainer
52,753
Manny Gonzalez
Negotiable Realty LLC - Chicago, IL

Hey!, Daniel...I love to work with Buyers who are serious enough to go "house shopping" in our Chicago cold winters!...you know it's a done deal! :)

Nov 24, 2010 12:23 AM #46
Rainer
52,753
Manny Gonzalez
Negotiable Realty LLC - Chicago, IL

Nov 24, 2010 12:24 AM #47
Rainmaker
827,598
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

I have known so many agents who just go home and don't try between Thanksgiving and New Year's - maybe that's why so many think it's a "dead time."

Christmas vacation is a prime time for people with kids who have to move to a new community to be looking... I guess they forget that part.

Nov 24, 2010 02:22 AM #48
Rainmaker
206,148
Tom Waite
Thomas Waite Real Estate Broker - Cypress, CA
So Cal-Apartment Bldg Investments

I agree Daniel:

 

Happy Thanksgiving and Merry Christmas.

 

This IS the best time of the year to buy a home.

Nov 24, 2010 10:23 AM #49
Rainer
8,519
Cory Kraai
Whitehall, MI

Touche!  Happy Holidays to you! 

Although this time of year is slow going here in Michigan, it is one of my favorite times to show homes and put some good deals together. 

You said it right: "I always enjoyed looking at homes during the Holidays. I enjoy seeing the ways people decorate their homes and how they celebrate. It really is a great time of the year to buy a home and one of the best times to get a great deal."

 

 

Nov 24, 2010 10:46 AM #50
Rainmaker
262,665
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

This is good stuff Daniel. There are not many Buyers looking now, but the ones who are, are motivated.

Nov 28, 2010 11:50 PM #51
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