Less Buyer Competition — Historically, there have been fewer buyers in the market during the Fall, compared to the busy Spring and Summer months. In 2023, with mortgage rates rising as high as 8% for a 30-year fixed (highest in over 23 years), buyers have been that much more hesitant to enter the market. In a market where there are fewer people searching for homes, you are likely to face less competition, and therefore increase your leverage and negotiating power. Sellers may also be more motivated to close before the end of the year, which could result in better terms and pricing for buyers.
Potential Financial Benefits — Following the peak home-buying season, you may notice that sellers are usually more willing to reduce their asking prices. Also, if the home has been on the market awhile, the seller may be willing to credit the buyer loan points to reduce the interest rate. Take advantage of this now and know that interest rates change, and you should be able to refinance at a lower rate in the not-so-distant future. In addition, contractors and moving services are often more available, which may lead to homeowners saving on costs of home repairs, upgrades, and other moving expenses.
Transparent and Accurate Home Inspections — During the Fall, you’re more likely to have an accurate understanding of a property’s condition, due to the unpredictable weather patterns. Rain, wind, and fluctuations in temperature will help reveal any potential issues associated with the home, such as leaks and problems with a home’s insulation and heating system. All of this will be crucial in creating transparency and helping buyers make confident and informed decisions.
End-of-Year Tax Advantages — New homeowners can receive significant tax advantages, even if they close on the last day of the year. Depending on your individual circumstances, you may be able to deduct property taxes, mortgage interest, and other homeownership-related expenses to offset your income for that entire calendar year. Always consult with a tax or financial planning professional to understand how home ownership can benefit you come tax season.
Get a True Feel for the Neighborhood — Most families enjoy taking vacations in the late Spring and early Summer months when their children have time off and their workloads have slowed down. Homeowners new to an area during this time may feel isolated when they move in, especially if the neighborhood is very family focused. When the Fall back-to-school season begins, neighborhood activity starts to perk up again. This offers you and your family the opportunity to get to know your neighbors, and feel more connected to your space and community when you move in.
