Housing News

Top Reasons to Buy a Home at the Start of the Year

The holidays may be over but it’s just the start of a good buying season.

Homebuyers who closed at the end of the year may have their perks. They were able to subtract mortgage interest, interest costs, possessions taxes and points on loans from their income tax return. While October and November have more houses on the market, it doesn’t mean that buyers have to wait for several months before they purchase a house that they want.

Some may not agree to this but buying a home at the start of the year has its advantages too especially in 2010. The winter season may give you limited opportunities to seek houses (sellers are sprucing up the yard with decorations because it’s impossible to showcase the greens when it’s covered with snow) but it suggests high gains for the smart buyer.

First, homebuyers are lucky to snap surplus inventory from homebuilders who can also offer large discounts. But buyers should be ready to discover the right house for them or they’ll be buying just to avail of the bargain and not because of the house itself.

Second, in neighborhoods where demand has been slowing down because of the season, homebuyers can command a better price from sellers. They have to take advantage of this before prices begin rising in spring (though we have to consider the lingering recession’s impact on home values for this).

Third, this would be a great time to prepare for the school year to end. Once you’re ready with your house, you can have the tiresome challenge of moving your things from your old abode.

Fourth, there is less competition from other homebuyers. The first quarter has fewer multiple offers observed by analysts compared to the succeeding periods. So even if you’re doing a post-Christmas purchase, it will still be a good option to make.

Finally, you can still avail of the first-time homebuyer tax credit since it has been extended until the end of April. Should you qualify, you can receive up to $8,000 in tax credit once you sign a purchase agreement before April 30 and have the sale closed before June 30.

So if it isn’t spring yet, it doesn’t mean it won’t be a good time to move to a new house.

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