Though certainly not as popular as the summer PCS season, many military families receive orders to report to their new duty stations at the end of the calendar year. While this may not seem like an ideal time to be picking up roots and searching for a new home, there are some excellent reasons to be excited about end-of-the-year home buying.
Tax relief. Buying a home before the end of the year means you’ll receive tax benefits much earlier than those who buy during the summer cycle. Because tax deductions are based on the previous year, your home purchase now means you’ll see more money in your tax return within a few months. Buying a home allows you to deduct some closing fees, mortgage interest, and property taxes. This deduction can represent significant savings at the beginning of a loan as most of this goes toward paying off the interest owed. Want to increase your tax savings? Consider doubling down on your first mortgage payment, provided it’s due before the end of the year.
Save major money. Those who list their properties at the end of the year tend to be highly motivated sellers. For one, they’re probably hoping to cash in on some of those same tax benefits we mentioned above. In addition, there’s less competition during this time of year, so you have tons of leverage when it comes to negotiating everything from sale price to what repairs the sellers will make. You’ll also most likely enjoy faster response times during the entire process. Talk to your real estate agent about crafting a buying strategy that will maximize your end-of-year purchase status.
If you’re thinking of a new build, this is a great time of year to purchase. Many builders are looking to boost sales at this time, when home buying traditionally slacks off. Look for more builder incentives to be offered, such as extra credit toward upgrades, discounts on asking price, or builders picking up closing costs. You have the most bargaining power with builders at this time of year. So, if a new build has always been a dream of yours, but you weren’t sure you could afford it, your Christmas wish might just be possible.
More time. Buying at the end of the year means more time all around. More time to decide which house is right for you because there are fewer buyers competing for inventory. More time to negotiate the absolute best price. More time to move in and get settled, as most military bases go to minimum manning requirements the last two weeks of the year. Definitely more time to secure moving services, contractors, etc. for all those jobs that seem to come when buying a new-to-you home. Have you felt rushed during the summer house-hunting season? You simply won’t have those same stressors at this time of year.
The end of the year can be an incredibly busy time. Add in a major move and it can seem overwhelming. Luckily, home buying might just be easier now than any other time of the year. Check in with your trusted real estate agent and learn all about the joys of purchasing a home at the end of the year. Who knows? The possibilities may just have you whistling holiday songs all the way to your brand-new home.