Homebuyers

Could Buying a Home Before the Holidays Save You Money?

While many homebuyers may take a break from open houses and home searches over the holidays, those who keep looking could find an unexpected gift: more negotiating power.

Sellers who still have their homes listed around Thanksgiving and into December may have compelling reasons to close before year’s end. That can create opportunities for homebuyers.

“By late November, most sellers still on the market are either relocating for a job…or they’ve already bought their next house,” said Rob Bergeron, owner-Realtor at Winner Realty in Louisville, Ky.

“A buyer who can close within 30 days [may have] more leverage in December,” he said. “The seller’s pain is [often] time, not price.”

Here’s what homebuyers need to know about taking advantage of a slower housing market during the holidays.

Why the holidays may give homebuyers an edge

The homebuying slowdown may begin even before Thanksgiving.

“Any time after the daylight-saving switch is an especially good window for buyers,” said Realtor Cynthia Cummins, the founder of Kindred SF Homes in San Francisco.

Cummins said competition in her market tends to decrease as some homebuyers turn their attention to the holidays or take a break after searching during the spring and summer.

But fewer homebuyers don’t necessarily guarantee better deals. The number of homes for sale can also shrink in November and December, potentially offsetting some of that advantage.

Nationally, more homes are for sale now than homebuyers have had to choose from in recent years.

More than 1.17 million homes were actively listed for sale in the week ending Sept. 19, according to Realtor.com. That was up 5.8% from a year earlier and near the highest level since late 2019.

How to spot a holiday home ‘hidden gem’

Some of the best opportunities may be homes whose sellers have a compelling reason to close.

The fourth quarter can contain “hidden gems” for homebuyers, according to Realtor Brian Weast, CEO of The Weast Group in Rockwall, Texas. These include properties that were initially listed too high. Sellers may now be more willing to consider offers to clinch a deal.

Cummins recommends watching days on market, the difference between listing and sale prices, and how many homes are available. She also suggests having a real estate agent closely track desirable properties and stay in contact with listing agents.

That could help homebuyers quickly learn whether a seller is considering a price reduction or taking the property off the market.

 “As they say, timing is everything,” said Cummins.

Don’t just ask sellers for a lower home price

A motivated seller doesn’t necessarily mean a homebuyer should immediately make a low offer.

“I tell my buyers to ask for closing costs and a rate buydown before they ask for a price cut,” said Bergeron. “A holiday seller will usually move on that faster than they’ll move on the number on the sign.”

Depending on the loan and transaction, seller contributions toward eligible closing costs or a mortgage-rate buydown may help reduce the upfront or monthly cost of purchasing the home.

Homebuyers should find out what the seller wants

Money isn’t the only negotiating tool a homebuyer has.

“The biggest leverage is usually around timing rather than just price,” said Lisa Martinez, a real estate solutions specialist at TX Cash Homebuyers in Houston. “A clean, certain closing can sometimes be worth more to them than squeezing out another few thousand dollars.”

Homebuyers may also be able to negotiate around a seller’s preferred move-out date or ask for furnishings to remain with the property.

“The key is understanding what the seller actually needs before making demands,” she said.

For sellers who want to close before 2027, a fast closing may be particularly valuable.

“The most motivated sellers I see are the ones already paying for their next home,” said Jo Ann Koontz, a real estate attorney and CPA with Koontz & Associates in Sarasota, Fla. “Trade them the fast close they want for a credit toward your closing costs.”

Homebuyers considering that strategy should talk with their lender before committing to a specific closing date to ensure the timeline is realistic. They can also work with their real estate agent to determine which terms they can reasonably offer without sacrificing important protections.

Florida homebuyers may have another reason to close by Dec. 31

For some homebuyers, getting to the closing table before the end of the year may have benefits beyond negotiating with the seller.

“In Florida, the buyer has a year-end deadline too,” said Koontz. “Close by December 31, make the home your permanent residence, and you can qualify for the homestead exemption on next year’s property taxes. Close on January 2 and you wait a full extra year.”

Florida’s homestead exemption can reduce the taxable value of an eligible permanent residence. Eligibility requirements apply and property tax rules vary by location.

Homebuyers considering a year-end closing should find out whether similar deadlines or tax considerations apply where they’re purchasing.

Christmas week may be worth watching

Homebuyers who are willing to keep searching through the holidays may face less competition.

Daniel Ellington, a real estate agent with Infiniti Properties in the Chicago area, considers the stretch from October through February a particularly good time to look for deals.

Colder weather can also give some sellers another reason to make a move before winter sets in.

“People finally give up and want to pack up to move to Florida, Nevada, Georgia, or similar places to escape the cold and snow,” said Ellington.