First Time Homebuyer Information & Education
Whats the best time of year to buy a house
Whats the best time of year to buy a house - The time of year you buy your house can affect pricing a great deal. In some states real estate sales slow down in the winter months and sellers will be more open to offers they may not have considered in the spring or summer markets.
If you are going to buy a new home from a builder, the best time of year to buy a home is fall through early winter. Builders usually start discounting their existing inventory or offering extra incentives around September. Those discounts are only around until their inventory of homes for sale drops to just a couple in any neighborhood.
In most real estate markets, the summer is the time most people will purchase a new home. This means that the sellers can increase prices a little, and be less willing to give you closing costs credits. Sometimes your situation will not let you choose what time of year you want to purchase your home, and in those case you may have to bite the bullet and purchase when the market is hot.
In the state of California for example. November and December tend to be the slowest two months of the year for real estate. Durring these months, buyers have more leverage than usual, and can ask the seller to come off the asking price by a larger amount and have a greater chance of the offer being accepted.
Keep in mind that when you are trying to figure out when the best time of year to sell your home that most of you will be buying a new home and taking out a mortgage on that property. If you decide to wait 6 months until the time of the year is usually better for your specific area that mortgage interest rates will change during this time you wait also. Interest rates have been on the rise and there is always the chance that you may end up having to accept a much higher interest rate by waiting to sell your home. So making an extra 5 or 10k from the sale of your home and accepting an interest rate that is considerably higher because you waited to put your home on the market may end up costing you more in the long run.
There are advantages and disadvantages to buying either when the market is hot or when it is slow. While you may get better deals during the slow months, you will also have less selection (less homes for sale). In a hot market you may be more likely to get into a bidding match with another buyer, but there is also a much greater selection. If you loose that house there will be more like it available.
May thru July are often popular times to get a home as people are using tax refund money towards down payments or closing costs.
In the northern climates you will probably find the best deal in the winter months.
Typically the average house price falls during the months of October through March and the largets price increases are made in Spring and Summer. Depending on the local market you could save as much as 7% to 10% by purchasing in January when most people are not shopping for a home.
Should I buy a Duplex or single family house - There are positives and negatives to owning a duplex over a single family residence. A duplex allows you to rent out one side helping to reduce the financial burden your mortgage payment puts on you.
If you decide to rent out one side and live in the other you will benefit from being an onsite landlord. You have an extremely lower probability of your tenants damaging your property when you are there.
When qualifying for a mortgage in a Duplex, you can try and qualify as an owner occupied property if you will be living in one of the units. This may get you a loan with a lower interest rate as well as reduce the amount of down payment if any that may be required.
While buying a duplex may make more sense with the thought that you can rent 1 unit and live in the other unit you must remember that you will need to keep it rented, to a responsible renter, to gain a benefit over a single family home. This can sometimes prove to be a tough task; that is, getting a renter in there that pays the rent on time and keeps the unit clean and in good condition. You will also be responsible for maintenance of the unit you are not living in (along with the unit you do live in too). There will be items that will need to be fixed and possibly replaced, every time a renter leaves you will most likely have to go in and clean the carpets, possibly apply a fresh coat of paint, fix anything broken, etc... So therefore, just keep in mind that many more responsibilities come up with a duplex as opposed to a single family house.
Owning a duplex has several tax shelter opportunities. Some of these include being able to depreciate one-half of the duplex, and deducting the interest on the mortgage for both sides of the duplex.
Before purchasing a duplex, be sure to consider the resale potential of the property. Traditionally it has been more difficult to sell a duplex than a single family residence.
Information listed above is to be used for educational purposes only and is not guaranteed
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