End-of-year home-buying has, in legend, had benefits that we do not have a lot of knowledge about within the general public. We asked the experts what their thoughts were on the topic and if there were any extra incentives for end-of-year buyers.
Janet Hummel, Town & Country Real Estate
I think just owning property on the East End is incentive enough. Real Estate has always been a hedge against inflation. Over the years, real estate on the East End has outperformed the stock market. How many times have you said, “I should have bought that property a few years ago” because you see how much the property has appreciated. It can also be a tax write-off for many owners. I have buyers who are looking for rental properties because they need the tax write-off. How great is it that you have a home people want to vacation in?
Deirdre Jowers, The Corcoran Group
The end of the year is a great time to buy on the East End. Inventory is still low but any home that was on the market all summer may now have a seller who is more flexible on their price. They know if they don’t make a deal soon, they may be carrying their home into the spring. If a buyer is also looking to sell a current real estate holding, they may have the tax benefit of a 1031 exchange to defer capital gains, by identifying a new purchase within 45 days of selling their property. An end-of-year purchase is also perfect timing for a property to be improved, renovated, and prepped – regardless if a buyer plans to use their new house or list it for the next rental season. Homes that are listed by January/February have a higher chance of getting rented than ones coming to the market late, like in April or May. My advice for today’s buyers is to follow your gut instinct. If you find a place that feels like a good fit, don’t get wrapped up in a game trying to acquire it. Make a strong offer and secure it as soon as you can, as there is still a pent-up demand in the market and another offer could come in while you dally in negotiations. I’ve seen this happen too many times! Just go for it!
Vincent Horcasitas, Saunders & Associates
There isn’t really a tax benefit to buying before the year is over, however buying this time of year allows you a lot of time to prepare for the summer and to also enjoy the property in the wintertime, which is a magical time of year in the Hamptons. You have all of the holidays and all of the events that go on in the different towns and villages, they all do such a great job at making this a special place even in the off-season, and it just gets better and better every year.
Kelsey O’Connor, SERHANT
End-of-year buyers can take advantage of a few incentives and strategies but ultimately, we are currently witnessing price improvements in the market. This is a valuable opportunity to secure a home at an affordable price point before the interest rates decrease and home prices rise again. It’s crucial to remember that while homebuyers can renegotiate their rate after the transaction, they are unable to renegotiate their purchase price. For those who are ready and well-prepared, the end of the year is a favorable time of year for homebuyers for this reason. My advice is to advantage of the current price reductions and be prepared to act when the right opportunity arises. There is less competition and sellers are open to negotiations.
Gene Stilwell, Town & Country Real Estate
Incentives for buyers is an interesting question. For some buyers, the tax benefits can be very good depending on their personal situation. For example: If you sold a property and are looking to defer the capital gains with a 1031-like exchange. In addition, real estate is a tangible asset and with the continuing fluctuating markets, having a tangible asset that you can use or rent is comforting — and over time always appreciates. It’s also important to keep in mind that our inventory is still on the low side and therefore I always say that if a certain property checks all the boxes and it’s a home you feel you will regret NOT buying… then make your move. This is not a dress rehearsal!
Jennifer Wilson, Saunders & Associates
I would tell any buyer to work with a local experienced agent, especially now. There is a lot changing in the towns regarding maximum building square footage, and other town codes. A buyer should have a local, knowledgeable agent who acts as a resource for their clients from start to finish.
Angela Chmielewski, The Corcoran Group
People should look to buy homes around the end of the year so they can be prepped and ready for the summer season. It’s nice to have the extra time to personalize and make their new home special. My best advice to this season’s buyers is to make an offer! You never know how flexible someone is until you do. This time of year, things start to get quiet, and sellers might be more motivated to get a deal done.
Denise Wilder, Douglas Elliman
There are several reasons why I believe it’s a good time for buyers to be looking and making offers between now and the new year. First, we are finally seeing more inventory coming on. We are seeing price reductions as some sellers are realizing the market is shifting and they don’t relish carrying the property through the winter. There are also fewer buyers looking at this time of year, so there is less competition than in the summer and new year. Buying now will also give the new homeowners plenty of time to do the projects they desire before the mad crush happens next year. Hiring contractors is much easier as they aren’t as busy in the winter months.
