Buying a house before the year ends is actually a good idea!
Ah! It’s the holiday season once again, and you know what that means: get-togethers, gift giving, game nights, road trips, picnics, and barbecues! Did I forget something? Oh, yes—buying a house!
We know the holidays are a time to connect with family and friends, and you should absolutely enjoy that. No one expects you to work around the clock. But here’s something to consider: the holidays are also the perfect time to look for your next residency or to find and flip houses.
Still not convinced? Let us share a few reasons why buying a house during the holiday season can work to your advantage:
House Buying Competition is Lower in Wilmington
Here’s something useful to know:
The most competitive months for buying a house are March through June. During spring and early summer, many homeowners list their properties for sale, creating high demand among buyers. This often leads to bidding wars and inflated prices.
But from late fall through winter, fewer buyers of houses are active in the market, which means less competition. November through January, in particular, can be a buyer’s paradise. Sellers during this time are often more motivated to close deals quickly, giving you greater negotiating power to lower the price.
Yes, there may be fewer options to choose from, but you’re likely to get the property in Wilmington at a discount.
If you’re interested, we can help you to buy real estate in Wilmington. We have a curated list of homes for sale and can help you find properties that suit your preferences. Just send us a message!
Save More with Tax Breaks
Buying a house before December 31 can also save you money on taxes. Here’s how:
Mortgage Interest
When you take out a home loan, you pay interest on it. The government allows you to deduct this interest from your taxable income, potentially reducing your tax bill.
For example, if you borrow $300,000 at a 5% interest rate, you’d pay around $15,000 in interest in the first year. If your annual income is $70,000, deducting $15,000 in interest means the government taxes you as if you earned $55,000 instead of $70,000.
Even if you buy late in the year, a few months of interest payments (October–December) could provide a significant deduction.
Property Taxes
You can also deduct property taxes from your taxable income.
For instance, if your home is worth $250,000 and the property tax rate is 1%, you’d owe $2,500 annually. If your annual income is $70,000, paying $2,500 in property taxes reduces your taxable income to $67,500.
At closing, you may pay a portion of the property taxes for the year. This happens because the seller might have already paid some taxes, and you reimburse them for your share of the year you’ll own the house.
It can be complex, but we’re here to help! Reach out to us to learn more about real estate taxes.
Easier Access to Real Estate Experts in Wilmington
The real estate market tends to slow down during the holidays. With fewer buyers actively searching for homes, it’s a great time to connect with professionals like us.
Real estate agents, loan officers, and other experts often have more availability to focus on you and your needs. We’re motivated and excited to help you find the perfect home so you can settle in and enjoy the rest of the season with your loved ones.
So are you interested in buying a house in Wilmington?
Experts agree: the best time to buy a home is when the numbers work for your budget and the purchase aligns with your needs and lifestyle.
If you’re unsure whether now is the right time, we recommend speaking with a real estate agent, loan officer, or financial advisor. Or you can talk to us, Jonathan Swanson, Broker @ RE/MAX Essential! We’re here to guide you through the house buying process and help you make the best decision for your situation.
Get started by sending us a message or calling us directly. Also, we buy houses for cash. We can sell houses as is and fast. So if you know someone, we can help them out.
Let’s find your next home together!
