Closing on Encinitas homes before the end of 2012 can have huge benefits for you. As an Encinitas Realtor I have isolated the top reasons why closing escrow on your Encinitas home before the beginning of 2013 will be the smartest decision you could make.
- Mortgage Debt Relief Forgiveness Act – Typically when mortgage debt is forgiven, the money that is lent to the borrower is considered income and thus taxable by the IRS. This act exempts homeowners from the income taxes incurred when mortgage debt is forgiven. However, this act will expire December 31,2012 and while many expect that it could be extended, there is no guarantee that it will so the time to act is now. This is particularly helpful with those looking to sell homes for sale in Encinitas on a short sale.
- Low Competition for Buyers and Sellers – Due to the shortage of inventory that markets across the nation are experiencing, this has meant more multiple-offers and more competition. In the winter months competition tends to diminish as a result of families having found homes before the school year starts, increased holiday travel, and activities that are home-oriented. Sellers can benefit as well as many agents will hold off listing homes until after the New Year, making for less competition for buyers and sellers.
- Motivation Increase for All Involved – While those involved with Encinitas homes for sale won’t have to deal with the frigid Arctic temperatures of New England or Midwest winters, the temperature will decrease and families will be enjoying the holidays. This means that those looking to buy and those looking to sell will be the more motivated clients, as they will be spending time away from the family either house-hunting or preparing. For both buyers and sellers of homes in Encinitas this means the people you are dealing with will be more motivated than most.
- Certainty on Interest Rates – Regardless of what happens in the coming election a new year could bring a shift in policy on a national level with priorities shifting to other concerns. Closing before the end of the year will allow clients to lock in the low mortgage rates we are currently experiencing.
The best thing that you can do as a client is to get as serious as possible and contact an Encinitas real estate agent to assist you in closing escrow by the end of the year.