Did you know that the best time to buy a home is usually in late summer or in the fall? According to Zillow, most new listings hit the market in April. However, demand is also highest then, so you may pay a premium price for a home. Zillow also notes that inventory is typically plentiful in August and September, and there is not as much buyer competition. These dynamics can lead to lower prices, overall. In addition, during these months, there are more houses with at least one price reduction than at other times of the year. Regardless of when you are buying, there are some key considerations to keep in mind:
Set your priorities. What makes a home location desirable is personal and depends on your priorities. An excellent school district may be most important to you. You may want proximity to a major city or perhaps you prefer a quieter, more rural location. Are you planning to live on your property full time, part time, or are you buying for investment purposes? These and other factors impact where you choose to look.
Consider insurance and taxes. Annual property taxes can vary greatly depending on the value of your property and where you live. Currently, you can only deduct a total of $10,000 for state and local taxes (SALT), including property taxes, on your federal tax returns. Homeowner’s insurance is required if you have a mortgage and highly recommended, even if you do not have one. There is typically a wide range of coverage options, and corresponding premium payment levels, to protect against potential risks. We help you look at your complete tax and insurance situation to determine the best solutions for your needs.
Identify financing options. Should you pay for your house in full or finance it? Interest on the first $750,000 of a mortgage is typically tax deductible, so partial financing may be a good idea. Choosing a mortgage structure (i.e., fixed versus adjustable rate), depends upon your overall financial situation, time horizon, tax situation, interest rate availability, and more. We can help you assess the options and select the most appropriate financing solution.