provided by: 
The holiday season (late November through early January) is a great time to find a bargain on a home, so instead of hitting the malls, you might want to take advantage of the slower market.
Home sales peak in spring and summer in most parts of the United States. As the weather turns colder and kitchens everywhere begin churning out a series of holiday feasts, people become too preoccupied with the festivities to go house hunting.
The slower market has its advantages:
- Supply and demand. With fewer home buyers demanding a dream house and plenty of listings still sitting on the market, prices tend to drop. Sellers may be motivated to make a deal, especially if the house has been on the market for a while. And you are less likely to enter a bidding war with other potential home buyers, which could increase the cost.
- Better interest rates. Lower demand also affects mortgage lenders. You may get a better interest rate or see fewer mortgage-related fees at the closing table. Definitely do some comparison shopping to find the best deal for your circumstances.
- Tax deduction. If you close on or before December 31, you may be able to deduct the interest on your first monthly mortgage payment from your taxable income. You may also be able to deduct any money you pay for points to reduce the interest rate on your loan. Consult a tax advisor to find out exactly what deductions you can claim.
Published on January 11, 2007Read full article at realestate.com