Some people want to buy a house by the end of the year. But what are the benefits?
Less Competition to Buy a House
Most people are busy planning for the holidays, not thinking about buying a house. Which is why the market cools for the holidays. With less competition, a buyer can negotiate better with a seller. In general, once Thanksgiving comes around, real estate slows until about February. There may be less houses coming on the market during that time, but there are also less buyers to compete with.
If you buy by December 31, you can use the property on this year’s taxes. That means that you can deduct mortgage interest and property taxes, which can help you with some savings.
In Florida, you can get a tax-saving exemption on a property if it is your primary residence. In order to get the tax savings, you have to own the property by January 1 of that year. So, you have to close by December 31 to get that savings in the new year. This exemption, is on the first and third $25,000 if the assessed value of the owner’s primary residence. The tax savings could be on average around $800-$1000. You have to CLOSE on the property by January 1, but you can file for homestead exemption by March 1 of that year. Here is more information on filing for Homestead in Broward County: http://www.bcpa.net/homestead.asp
To file for homestead, you will need the recorded deed in the new owner’s name name, a Florida Driver’s License (reflecting the new address), and your voter’s registration (reflecting the new address.) You can apply here: https://bcpasecure.net/homesteadonline/web/index.aspx
Buying a house is a big decision and one you do not want to rush. If you can make it work, buying a house before the end of the year has some benefits.