Why Fall Is a Great Time to Buy a Home

Many of our viewers have asked lately whether the fall is a good time to buy a home. I wanted to explain today why it might actually be the best time of the year to buy one.

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We've received a lot of great questions lately, so today, we wanted to answer one from a couple of viewers who were wondering whether or not the fall months are a good time to buy a home. There are actually five reasons why I think fall might be the best time to buy a home:

1. Lower home prices. October has the lowest home prices of any month. This isn't just some guess; this comes from RealtyTrac's analysis of more than 32 million home sales over a 15-year period.
2. Less competition. Like the beach after Labor Day, the summer real estate market also clears out when the days turn crisp. Most summer buyers have already bought their home, so you'll have less competition in the fall. 
3. Interest rates are still at an all-time low. In 1970, the average interest rate was 8.8% and by 2000, it was 6.29%. In the 1980s, it was as high as 12%! This September, it's 3.64%, which is about as low as we’ve seen rates get.
4. The holidays are just around the corner. Not only are most sellers worn out from the summer selling season, they're caught between a real estate rock and a hard place in that the holidays are barreling down on them. If they want to move in time to host Thanksgiving dinner and put up their Christmas lights, they'll have to close fast. These are motivated sellers, so use this pre-holiday window to your advantage. Offer to let them vacate fast if they cut you a deal.
5. Year-end tax credits. Nobody wants to buy a home just to please their accountant, but on the other hand, there is a sweet added incentive for closing on a home at the end of the fiscal year. Come April 15th, you might be able to take some nice deductions, including closing costs, property tax, and mortgage interest.

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Fall real estate is like the beach after Labor Day.

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There is a lot to think about if you're going to enter the market this fall. If you work with the right Realtor plus a competent lender and accountant, you'll be fully prepared to buy the right home for you at the right price with the best tax advantages. If you need a referral for a great lender or accountant, just reach out and we'd be happy to provide it for you.

If you're thinking about buying a home this fall, give our team a call or send us an email. We'd love to help you out!

What Makes up Your Closing Costs?

Your down payment isn’t the only sum of money you’ll need when buying a home. Closing costs can add up.

When clients are so focused on what their down payment is going to be or what their monthly mortgage payment is, they forget about the closing costs, which can be significant. We like to bring up closing costs with our buyers up front just so there are no surprises later.

When you purchase a home with a loan, there are a surprising number of associated closing costs. There are lender fees, underwriting fees, appraisal fees, property taxes, and homeowners insurance that will all be required by your lender.

In addition to those costs, there will also be a title insurance policy as well as escrow and notary fees. The total cost usually ends up being 1% to 2% of the purchase price. On top of these closing costs, you’ll also have to set aside $400 to $600 for inspection fees. You should also keep in mind that you may want to set some more money aside for when you move in. You may want to repaint or buy new furniture.

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Interest rates are still incredibly low.

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Don’t let these closing costs deter you from purchasing the home of your dreams. Interest rates are incredibly low, giving you a great opportunity to capitalize on your home purchase. We just heard from our preferred lender that rates are around 3.35% for a 30-year conventional loan.

The biggest piece of the puzzle to solve is finding the right Realtor and lender. When you're working with the right people, you will definitely have a successful transaction. If you have any questions for us, feel free to reach out and give us a call or send us an email. We look forward to hearing from you soon.