End of the Year Closing

Closing on the purchase of a new home, prior to the end of the year, offers a buyer a multitude of incentives.  These incentives, or inducements, range from tax saving opportunities, to the indulgence of celebrating the upcoming holidays in a new home.  Closing on your new home in the last few months, up to the last day of the year, can offer huge financial savings, compared to closing at any other point in the year.  When buying, your realtor will give you an estimated timeline for completing the purchase, from signing the contract, to sitting down at the closing table.  Delving into the opportunities of an end of the year purchase may just inspire you, and your realtor, to reevaluate and adjust your plans to close sooner than later.  Be sure to sit down with your realtor today, to discuss your options.

To begin, mortgage interest, property taxes, and points paid on loans acquired, can all be tax deductions for a homebuyer, if they close on or before December 31^st.  In addition, interest costs associated with the loan, can also be deducted.  These tax deductions can significantly add up, and will ultimately lower your income tax for the upcoming year.

In many cases, the current seller, by the year’s end, has already paid the property taxes on the home in which you are looking to buy.  Meaning, if you close by December 31^st, you will have less of a property tax expense to pay.  Closing costs can accumulate quickly, so anywhere you can shave off an expenditure, is money saved.

Oftentimes, people are somewhat put out by the duration a real estate transaction can take.  Closing near the end of the year can expedite this process.  The seller, lender, and other involved parties, are anxious to wrap things up quickly, as to get paid, prior to the end of the year.  Profits from an end of the year sale can be beneficial for everyone involved.  So, if you fall into the category of “I want to close quickly”, call your realtor, and begin your house hunting today.  An end of the year purchase will have you in your new home before you know it.

While house hunting, realize that sellers at this point in the year are oftentimes more motivated, and builders of new construction homes are offering incentives of their own.  A seller’s motivation frequently offers you leverage in negotiating a better deal, or asking for perks and bonuses.  The seller may feel the need to sell quickly, in order to purchase their own new home, prior to the year’s end.  They too, want to reap the same benefits that you are out to obtain.  As far as new home construction goes, builders need to sell as much of their inventory as possible, to avoid being taxed on it at the end of the year.  Henceforth, they will commonly be offering discounted prices, upgrades free of charge, and many more extras.

With the holidays quickly approaching, many people have more days off from their job, or they must use the days given that they have not yet taken.  Because buying a home requires several tasks to be performed, this is an ideal time of the year to utilize those unused days in house hunting, purchasing, and closing on your new home.  And, because you have chosen to do so, at the end of the year the moving process should also run much more smoothly.  During other months of the year, one can wait upwards to 8 weeks for the services of a moving company.

Finally, who wouldn’t want to prepare their Thanksgiving dinner in a brand new kitchen?  And, Christmas morning this year will be one you won’t soon forget.  Celebrating the holidays with friends and family in a new home can be rewarding in so many ways.  So, instead of putting off the purchase of a new home until spring, call your realtor today.  An end of the year closing proposes a host of incentives, both financially, and for personal gain. Begin your house hunt today, and be sure to close on your new home before December 31^st.

Gabby Tyer - CRS, GRI
Real Estate Sales and Property Management
Managing Principal Broker/Owner
Realty Solutions
www.allaboutportland.com
www.jessicashope.com
 
Gabby Tyer is your ultimate real estate resource for Portland, Oregon and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.
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Photo provided courtesy of Dave Dugdale.