Top Mpls MN Realtor on Buying a Home in the Fall

With summer in the rearview mirror, the fall home buying season is in full swing. As we move into the last quarter of the year, many disappointed summer home shoppers wonder if they should suspend their search to renew efforts in the spring.

As you ponder the question, you should take into consideration that the fall home buying season has some distinct advantages. Instead of taking a break, you may want to stay with the program and intensify your search for a home. Here are some of the perks and rewards you can expect if you decide to stay engaged in the hunt for a home.

Fall Home Buying Means Less Competition

Like most markets, real estate has seasonal adjustments. Fall home buying season is generally less busy than the spring and summer markets. The “must buy a home before school starts” mentality is one reason. Another is that some people do not want to move in the winter months.

Those who have no school-age kiddos or are more flexible about their moving timetable can take advantage of that market slowdown. They will find less competition for homes and less chance of getting into a multiple offer minefield. Let’s face it, “I want to be in a bidding war,” said no buyer ever.

Less Competition Can Give You Leverage

The fact that fall home buying is less aggressive can mean that buyers have more power to bargain when they negotiate an offer. Not only does the possibility of securing a lower price possible, but you might also be able to arrange for closing costs to be wrapped into it as well. Leveraging will be especially true for homes that were listed in the summer and didn’t sell.

Advantages of Moving in Late Fall or Winter

When it comes time to move into your newly purchased home, less competition gives you more advantages. Moving companies have more flexibility in their scheduling, and are more likely to offer discounts and perks to winning customers.

Barring a snowstorm, isn’t it more pleasant to move in cooler temperatures than in the heat of summer?  Another perk is not having to spend valuable summer recreation time unpacking and setting up your new digs. Fall and winter fit together naturally with settling in and nesting.

Get Ahead of Rising Interest Rates

If you have been in a search for a home, you know that interest rates have been slowly but steadily increasing. As of now, mortgage rates have reached 5 percent which, coupled with higher prices have raised the cost of owning a home.

Meanwhile, the Federal Reserve Board has warned us they plan one more rate increase when they meet in December. That means the longer your wait as a buyer the more compromises you might have to make regarding what will be affordable.

Fall Home Buying Lets You Take Advantage of Tax Breaks 

There are tax advantages for homeowners not available to renters. Before the year ends, you will be able to take advantage of interest deductions on your newly purchased property on up to $750,000 of mortgage debt. You can also take a deduction for property taxes. Keep in mind, however; there is a $10,000 total tax on state and local income, sales, and property taxes.

Private Mortgage Insurance (PMI,) is also still deductible as of now. PMI is deductible up to $100,000. However, if your adjusted gross income (AGI) exceeds $100,000 ($50,000 for married filing separately), the deduction is less. The PMI deduction only applies specifically to 2018 unless an extension is granted going forward.  

We strongly suggest for the most current tax laws regarding home ownership and purchase deductions you consult with a tax expert or CPA.  

There Is No Place Like Home For the Holidays

Fall home buying means you will have ample time to be established in your new residence by the winter holidays. What more fabulous way to start life in your new house than before a cozy fire sipping a cup of hot tea or spiced cider. How great would it be to introduce your family and friends to your new home with a combination holiday/housewarming event?

An MN Realtor for All Seasons

Arguments exist for and against buying a home in any season. Ultimately, your particular situation should be foremost in determining what time is the best time for you. Whenever you decide to make that move, I’m here if you have any questions. Consider me your MN Realtor for all seasons.