Purchasing a home will most likely be the biggest financial transaction of your life. Timing that purchase will get you the best possible deal. There are certain times of the year, right down to specific months and even days of the week that will regulate the amount of your mortgage and what you can afford to spend. Across the country, fall and winter are generally the best seasons to buy a house. Around the holidays most people are preoccupied with other things and so it isn’t uncommon for prices to drop with sellers desperately trying to sell. People living in cold areas often allow the weather to get the best of their emotions and, tired of living in the cold they list their homes hoping to move to a warmer climate. Typically, in January and February houses cost 8.45% less than in June and August according to NerdWallet. Often, sellers who were motivated to sell in the spring are becoming frustrated and are more willing to negotiate with buyers.
Real estate markets vary regionally, so the best time in your area may not be the best time somewhere else. It’s imperative you hire a trustworthy agent who can help determine the best time for you to buy. For example, living in Arizona where the temperatures are consistent except the brutally hot summers, prices don’t vary so much through the year. However, living on the east coast your market will fluctuate more with seasonal trends.
Finding the best time of year and having a down payment are not long term concerns. Determining the cost of being a homeowner must be factored into the equation. Costs such as insurance, repair and maintenance, HOA fees, and property taxes will be with you through the life of your loan and beyond. Typically homeowner insurance will run you $75-$100 a month, increasing with the value of your home. Most insurance companies will bundle your auto and home insurance resulting in substantial savings. HOA fees vary considerably vary depending on the neighborhood and amenities. An HOA fee can be as little as $75 a year, while others can be hundreds a month. Just as HOA fees vary, so do property taxes. Taxes are based completely on the county’s assessed value of a property. Just as an estimate use 1.25% of the assessed value or you can easily access your county’s public records for tax rates. Using a mortgage calculator can help you determine what you can afford monthly.
Entering into homeownership is one of the biggest responsibilities in life. It is important to take your time and thoroughly understand what will be required of you.