Don’t let the ghosts and goblins scare you away from buying a home in October. According to the real estate experts at RealtyTrac and others, October is the best month to purchase a home. It’s not what’s in the witches’ brew but what’s in the hard data. Here’s a list of reasons why October is the best time to invest in real estate.
Home Buying In October Is The Better Deal
RealtlyTrac cites that homebuyers were able to score an average price of 2.6 percent below market value during the month of October. And there’s a reason for that. The after back-to-school season and before the holiday roll in are typically slow in the real estate market. That being said, home sellers are just much more willing to negotiate on price. And sellers who have had their homes on the market since the summer start to get nervous and begin to lower the price. When the dog days of summer are behind, there’s always an end-of-season cool down. As a house hunter in October, the buyer crowd has thinned out, as the kids have settled into school. All around, the end result is that October gives homebuyers the upper hand in negotiating a good deal.
Rising Interest Rates
With the potential of rising interest rates, it just means that you can buy less house. The lower the rate, the more house you can afford. If a new home is on your radar and you’ve got enough for a down payment and closing costs, strike while the interest rates are still low. Avoid the mortgage rate roulette and changing lending rules by buying a home in October. It’ll offer you significant financial benefits.
End of Year Tax Perks
Buying a home before the end of the year comes with a variety of tax benefits. Tax benefits include the ability to deduct interest paid on the mortgage and a reduction in the amount of federal income tax withheld. Property taxes and some closing costs are also tax deductible. It’s just more monies in your wallet.
Builder Incentives
If you’re purchasing a home that’s brand new, there’s a good likelihood that the builder may push to close the books on the year to meet quotas. You just may get an offer upgrade or a few little extras for free before the month is over or the calendar year turns. Buying a new home in October just may get you some free goodies.
Cool Weather Reveals System Problems
When the temperature drops, it’s much easier to identify issues with drafts and problems with the home’s insulation and drainage system. Checking out the gutters and HVAC system can help you size up how the home has been maintained and what repairs may be needed.
Easier Move
Buy a home in October and close on it in October, and you can move in without the hassle of cold weather, ice and snow. No slipping and sliding or having to cope with extreme cold. It’s just one more reason why October is a great month to buy a home.
October is already underway, so it’s time to get cracking if you’re house hunting. Contact a realtor and find out what’s on the market. This way, you can reap the many benefits of buying a home in October.
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