Deciding to buy a home is one of the biggest commitments we make during our lifetime. While you may want to just take the leap, you must consider several factors. Timing the market is the best way to get a great deal on your home.
Does this principle apply when buying a home in November? To make an informed decision, you must cover your bases and learn must-know facts about home buying in November before pulling the trigger.
Don’t know where to start? Here are five things you should know when buying a home in November.
1. November Real Estate Market Conditions May Favor Buyers
Typically, buying a home during the fall and winter months is the best option for most home buyers looking for cheaper deals. In most housing markets, November can help home buyers secure hefty discounts.
An example is how the average sale prices for new homes in November 2018 was $367,100 while it was $377,800 in April 2018. Home buyers who chose to buy in November saved on average a whopping $10,700.
Generally, November offers scarce housing options for buyers which will put you in a tough spot if you wanted to consider a wide array of options. Keep in mind that pricing and real estate market trends may vary on a regional and even neighborhood basis. Before buying your home, you should consider consulting a real estate agent to learn more about the typical market conditions for your preferred location during the month of November.
2. Sellers Are More Open to Negotiating
Most sellers list their homes during the spring season. If a home stays in the market for more than 90 days, it’s deemed stale. Typically, sellers who list their home in November are looking to find a buyer for a stale home or need to sell their home fast.
These home sellers are more open to negotiating due to their urgency to sell their home. Buying your home in November gives you the upper hand to secure the best pricing. However, you should consider working with a local real estate agent who will know how to negotiate the best deal for you.
3. Holidays Are Coming Soon.
Everyone spends more during the holiday season. While you may be able to secure a better offer on your new home, you must keep in mind your typical winter season spending. If you’re switching from renting to buying a home, you must keep in mind any winter maintenance costs you’ll need to cover.
You may think you should only worry about winter weather if you live in states such as Illinois, New York, Maryland, Virginia, or Massachusetts. However, you must consider the costs of getting your home winter ready no matter where you live. Winterizing your home can cost about $200 in addition to your typical winter expenses but it will depend on the condition of your house.
4. Get Late Year Tax Benefits
When you buy a home in November, you may be eligible for year-end tax breaks. Mortgage points, interest, and property taxes are some of the home purchasing costs you may deduct on your tax return.
If you’re an investor who sold a property earlier in the year, November may be the best month to get a great investment property and level your capital gains tax liability. We recommend you consult a tax professional to get a better idea of your potential home buying tax breaks.
5. It May Cost You More in the Long Term
In 2018, the Federal Reserve Bank increased interest rates three times. While the Fed forecasts only two increases in 2019, the reality of it is that there’s no guarantee. Besides the common interest rate swings, mortgage interest rates increase every time the Federal Reserve hikes interest rates.
While buying in November may give you time to find your dream home, you may end up stuck with a higher interest rate than if you bought your home during the summer season. However, some realtors may offer a home buyer rebate you could use as mortgage points to lower your interest expenses.
Learning must-know facts about home buying in November is vital to getting the best deal. However, you should seek guidance from a local real estate agent. Partnering with the right buyer’s agent can help you time your home purchase while negotiating the best deal on your home.
When you work with a Clever Partner Agent, you’ll work with a top buyer’s agent in your market who will schedule on-demand showings to the listings you want to see while securing the best deal on your home in November or any other month.