On the 7th day of Christmas my true love gave to me.. A new property purchase!!! Once the calendar ticks over to December, the days start flying by and our social calendars fill up with end-of-year events, Christmas shopping and holiday preparations. With all the demands on our time, many people decide to put their property plans on hold until the new year.
However, you may be surprised to know that our savviest clients are in fact doing the exact opposite, because they know that buying a property before Christmas can save them thousands.
This is why December is one of our busiest and most rewarding months at iBuy Property. Many of our clients are picking up the pace of their property hunt because while most people are out celebrating and not searching for
property, they have a greater opportunity to grab a bargain.. Doing the opposite of the masses always pays off. Here’s 7 reasons why you should keep your property searches up and or employ a buyers agent instead!
1.Sellers are motivated
The process of selling a house can be hard work, so it’s no surprise that vendors may be keen to finalise their sales before Christmas. From preparing for open houses to negotiating complex agreements, vendors often just want to start their holidays with the peace of mind they have sold their house. What this means for buyers is that sellers may be open to accepting a lot less for a peace of mind sale.
2.The land tax motivator
Another great motivator for sellers in December is the impending land tax date, which in NSW and Victoria falls at midnight on 31 December. Any property owned or jointly owned at this time counts towards the land tax threshold, so vendors who are over the threshold may be keen to sell quickly. If you are looking to buy and are not concerned about the threshold, then you are in a great position to negotiate on price.
Giving someone the gift of reduced land tax at Christmas means you can win too!
3.Less Competition with Fewer Buyers
We know how busy everyone is at this time of year, so it’s no wonder many people decide to take a break from house-hunting. We also know that many buyers who missed out on properties over spring decide to have a rest as well – that is overall, less people looking!
4. Real estate agents are motivated to finalise end-of-year sales Just like everyone else racing to finish their business before the end of the year, real estate agents are looking to wrap up all their sales for vendors too. Not only does this benefit vendors, who can head into the holidays stress-free knowing their house has been sold, but it allows agents to bring in those last commissions for the year as well. With motivated sellers, hardworking agents and willing buyers, the end-of-year deadline can lead to good results for all parties.
5. Agents and vendors are keen to avoid the influx of listings in January Another reason both vendors and real estate agents are keen to finalise sales before year-end is to avoid the influx of properties in January. This is a pattern we see every year: as soon as the holidays are over, people kick off their property plans and the market is quickly flooded with new stock. For existing sellers, this influx means increased competition for buyers, as well as the psychological disadvantage of having ‘old stock’ which buyers are less keen on. Vendors may accept a lower price to avoid this increased competition.
6. Vendors listed for January/February auctions may be open to the ‘right buyer’ before Christmas
While there are benefits for selling at auction, at this time of year vendors may prefer the peace of mind that comes with finalising their sale quickly rather than having to wait several months for an auction. Heading into the
holidays with the certainty that their house has been sold can relieve a huge amount of anxiety and stress, so vendors may be more open to negotiating on price to sell now.
Talk to your buyer’s agent about “pre market and off market” properties listed for auction next year.
7. The Christmas break is a great time to move
Our final reason for buying property at Christmas is that vendors are often keen to move during the holiday break. If you can be flexible with settlement dates to the vendor’s advantage, they may be more willing to accept a lower price; an advantage you would miss out on if you waited until January to buy. So as your calendar fills up over December, keep penciling in those inspections and talking to your buyer’s agent.
A great property purchase this December will make for a very merry Christmas indeed!