The Benefits of Selling your Property at the Beginning of the Year

THE BENEFITS OF SELLING YOUR PROPERTY AT THE BEGINNING OF THE YEAR

As buyers are always wondering when the best time to buy is, and sellers always contemplating the best time to sell, they usually end up calling a real estate agent asking them to time the market. The truth is, you can never perfectly time when the best time to buy and sell will be, however, as an agent, we can look at a multitude of factors that may be an advantage for you as a seller to bring attention to your property!

If selling has been a thought for you, the new year may be a promising time, as January is an often- overlooked month that offers so much potential. From reduced competition to potential tax benefits of selling a property, let’s take a deep dive into the benefits of selling your property in the first quarter. As we are approaching the new year of 2024, January may be an ideal time for you to sell your property for the following reasons:

Buyers in the beginning of the year are typically more motivated.

Not only are individuals likely to move homes, cities, or jobs as a new year’s resolution, but the new year’s may be a perfect time as many companies initiate job relocations at the beginning of the year or very early in the year as well as many home rental leases end at the new year. This prompts individuals to start their home search.

Less competition

With fewer homes on the market, there is less competition for your property and therefore more attention on yours. It is very common for the first quarter (January – March) to see fewer active listings on the MLS, allowing your property to stand out and gain attention from the pool of motivated buyers.

New Year, New You

The Holidays have passed so people tend to be less stressed. A lot of times, individuals will halt their home search as the Holidays approach as it is typically a very busy time of year, people are traveling, it is a time where people start putting away savings a few months in advance, and often have some time off work to spend with family and friends. After the new year’s, people tend to get back to their daily routine and start working on their new year’s goals (Buying a home is a very popular resolution, whether it be a first home, downsizing, or upsizing).

Increased purchasing power

Individuals receiving a year-end bonus or tax refunds might have increased purchasing power.

Sense of urgency

The scarcity of listings from the Holiday seasons may create a sense of urgency among buyers who have been looking to purchase over the last few months, increasing their urgency to purchase.

Spring Market Preparation

Often, buyers start their home search early in the year to secure a property before the typically busy spring and summer market, making the first quarter an opportunistic time. If purchasing a second home or an investment property, getting into a home in the first quarter allows travelers to utilize their home over the summer months or allow it to cash flow with rental income.

Tax Advantages

Purchasing a home in the first quarter can potentially offer tax advantages for some individuals. Some tax advantages may include mortgage interest deductions, property tax deductions, homebuyer credits, closing cost deductions and more. It is important to consult with a tax professional to understand what is best for your situation.

Favorable Interest Rates

Interest rates are constantly changing and can impact buyer affordability. The current interest rate has been on a steady decline and would assist a greater pool of buyers to take advantage of purchasing a home. This week has marked the 9th consecutive week of declines and has reached the lowest rate since May 2023 (As of December 23, 2023).

Although the New Year may seem like an overwhelming time, it is a clean slate with many opportunities. From reduced competition and motivated buyers to potential tax benefits, selling in the first quarter of 2024 might be the strategic move you haven’t considered. In the market of selling real estate, timing could be everything and here are just a few unique benefits of selling in January!