According to Wall Street Journal, a rise in real estate deals usually happens during the last weeks of the year. It is accordingly due to the fewer listings, bargain hunters and others that are taking advantage of tax benefits for year-end planning.
Although it is the holiday season and the time to rest and be merry, real estate agents may be juggling their family day with the chance to close deals. Commissions for closing a deal could go as high as six-digits. So, there is no time nor chance to waste.
Apparently, there is a 10% rise in signed contracts in the second week of December, followed by a 5% bump in closings. The surge in closed deals apparently came from the price cuts and new listings in November, and the slower activity during the beginning of the year - from January till February.
Moreover, the tax benefits are also very pleasing when a deal is closed before the yearend. According to Realtor.com, if one closes by December 31, mortgage interest and property taxes can be deducted on the loan and interest costs. Apparently, these deductions are very crucial in the early stages of the loan especially on those with heavy interests.
“We were all utilizing the emotion of the holiday season,” said Mr. Rick Edler, an agent with Vista Sotheby’s International Realty. “Nothing is better than chatting [with clients] during the holidays.”
Edler noted that both of the clients - the buyer and the seller, were spending time with their families and loved ones during the deal.
“Some people say you’re listing at the worst time of year, but my thinking is: Numbers don’t lie,” said Ms. Vickey Barron of Douglas Elliman about listing on the holiday season.
Are you planning to buy a new property before the year ends? Do you think that it is a big help to actually buy a property during the last days of the year?
