Seeing fewer for-sale signs now that summer is over? That can be great news for buyers who are looking to score a new home and buyers who want to get rid of their place and buy a new one. If you think you missed the boat on making your move this year, we’re here to tell you why buying and selling in the fall can work for you.
The benefit to sellers is that those buyers who are out there tend to be more serious, which means your REALTOR® can key in on the real buyers without having to sift through the riffraff.
If you’re a buyer who closes escrow before December 31, and you may get a nice write off on your taxes. Property tax and mortgage interest are both deductions you can take for your whole year’s worth of income, even if you closed on your home in December. Any payments that are made prior to the closing of the loan are tax-deductible. This can make a serious difference in the amount you owe the government at the end of the year.
There are also potential tax breaks for home sellers. You can include all sorts of selling expenses in the cost basis of your house. Increasing your adjusted cost basis decreases your capital gain because this is what’s subtracted from the sales price to determine how much of a gain – or loss in some cases – you’ve realized. If you have less of a gain, you’re more likely to fall within the exclusion limit, and if you’re gain isn’t excluded, you’ll pay taxes on less. And that’s just the beginning. Closing costs and home improvements may also be write offs for sellers.
Home for the holidays
Buy or sell early in the fall and you could be nicely situated in your new home in time for the holidays. Moving during a calmer time of year also means you may have better access to movers and other necessary resources than during the busier spring and summer seasons.
The right price
Did you list in the spring or summer with an exorbitant number that you thought you’d have no trouble getting because it was a hot market? That’s pretty common these days. Whether you’ve had a revelation about the price you should be asking or have made updates to your home to justify a higher price, you’re probably in better shape to get your (realistic) asking price in the fall. If you’re a seller and you establish a smart pricing strategy, you could find your home standing out in the crowd and selling while others sit on the market under a blanket of snow.
Buyers also may have a better time getting a home that’s within their budget because when there is less competition for homes, there is less chance of bidding wars and over-asking-price sales.
Great deals on stuff to fix up your home
Coordinate the timing right, and those items you need to fix up your home for sale in the fall or update and upgrade after a purchase might be priced to your advantage. Check Consumer Reports for a full list of the best times of year to buy everything, and keep in mind holiday and Black Friday sales. You could score some great deals at this time of year.
Director, Luxury Homes Division
Professional Financial Planner
Keller Williams, Santa Barbara