March 11, 2025

Home-Related Tax Deductions

Tax season. Just the words can send shivers down your spine. But if you’re a homeowner, there’s a silver lining: potential savings!

You’ve probably heard that you can deduct the interest you pay on your mortgage — but did you know there are many other ways homeowners can reduce their tax burden?

Before you start your return, read this post for common home-related tax deductions, eligibility requirements, and tips on how to maximize your savings.

Home-Related Tax Savings: The Basics

Before we get into the details, it’s important to define some important terms to set the stage.

Tax Deductions vs. Tax Credits

Most tax savings opportunities for homeowners come in the form of tax deductions. Deductions work by reducing your taxable income — essentially, the government allows you to subtract certain expenses from your total income before calculating how much you owe in taxes. This means a lower taxable income and, ultimately, a lower tax bill. For example, if you earn $50,000 and claim tax deductions worth $5,000, you will only pay taxes on $45,000.

Tax credits, on the other hand, directly reduce your tax bill, rather than your taxable income. That means that if you owe $10,000 in taxes and claim a tax credit worth $2,000, your tax bill will be reduced to $8,000.

Pro Tip: Meticulous record-keeping is crucial. Keep detailed records of all potentially eligible expenses. This will make tax time much smoother and ensure you don’t miss out on any deductions.

Itemized Deductions vs. Standard Deduction

To understand what deductions apply to your situation, it’s important to know the difference between itemized deductions and the standard deduction. The standard deduction is a fixed dollar amount that you can subtract from your adjusted gross income (AGI) regardless of your actual expenses. Itemized deductions, on the other hand, are specific expenses that you can deduct, such as mortgage interest, property taxes, and charitable contributions.

You’ll need to choose whether to itemize or take the standard deduction. Generally, you should itemize if your total itemized deductions exceed the standard deduction. Most home-related deductions are only applicable if you choose to itemize.

2025 Standard Deduction Amounts

Single and Married Filing Separately: $15,000
Head of Household: $22,500
Married Filing Jointly: $30,0001

Source: IRS

Key Home-Related Tax Deductions and Credits

If you do choose to itemize your taxes, common tax deductions and credits available to homeowners include:

Mortgage Interest Deduction

No one likes to pay mortgage interest, but the good news is that you can deduct interest used to buy or build your primary residence or a second home. However, there are certain limitations that you need to be aware of.2

Mortgage size: If you file your taxes single or married filing jointly, you can deduct interest paid on the first $750,000 of mortgage debt3 for your primary residence or second home. If you are married but choose to file separately, that limit drops to the first $375,000 (for each partner).

Requirements:

The mortgage interest deduction only applies if your home is collateral for the loan (which is standard).
To qualify as a primary home, your property must have sleeping, cooking, and toilet facilities.
If you are deducting mortgage interest on a second home, you don’t need to use the home during the year; however, if you rent it out, you must spend at least 14 days or more than 10% of the days you rented it out (whichever is longer).

So, how do you calculate how much mortgage interest you’ve paid?

The amount of interest you pay each year will vary, even if your interest rate is fixed — that’s because mortgage amortization3 means that you pay more interest earlier in the mortgage’s term, and more principal closer to the end. Each year, your lender will send you (and the IRS) a copy of Form 1098, which shows how much you paid in interest.4

For example, let’s say you are a married homeowner filing jointly with a mortgage for $400,000. If your Form 1098 shows that you paid $25,000 in mortgage interest in 2025, you could deduct the full $25,000 from your 2025 household income.

Real Estate Taxes (Property Taxes)

You can deduct state and local real estate taxes (property taxes) you pay on your primary residence or second home. However, it’s crucial to understand what qualifies. Only property taxes imposed for “general public welfare” are deductible5—if your town imposes a special assessment for a project that directly improves your property value, like a sewer line, that is not deductible. Furthermore, fees for local services, such as trash collection or sewer maintenance, are not deductible, even though your town may list them on the same bill as your property taxes.

There’s also a limit: the 2017 Tax Cuts and Jobs Act imposed a $10,000 cap on the total amount of state and local taxes (SALT)6 you can deduct. This includes state and local income tax (or sales tax) as well as property taxes.

Finally, be aware that the amount you deduct must match the amount actually paid to the tax authority.7 This might differ from what you put into escrow if you pay property taxes through your mortgage lender. Typically, the amount your lender paid to your tax authority is listed on Form 1098.

Home Equity Loan Interest

You can deduct the interest paid on home equity loans or home equity lines of credit, but with a significant caveat. Since 2017, that interest is only deductible if the loan proceeds are used to buy, build, or substantially improve3 your primary residence or second home, and the loan is secured by the home.

If you use the home equity loan for other purposes, such as a vacation, debt consolidation, or purchasing a car, the interest is generally not deductible. If you use part of the loan or line of credit for eligible purchases, and part for non-eligible purchases, only interest incurred on the portion used for eligible spending is deductible.

Loan interest is also not deductible if the funds are used for home improvement projects or repairs that do not “substantially improve” your home. Smaller projects, like repainting or new cabinets, likely do not qualify. However, projects like building an addition, a full kitchen remodel, or installing a new roof should qualify as substantial improvements.

It’s also important to note that home equity loan and HELOC interest rate deductions are subject to the same upper limits3 as mortgages (and are added together with your mortgage for calculation purposes). For example, if you have a $500,000 mortgage and a $300,000 home equity line of credit—which together exceed the $750,000 limit for a married couple—you would only be able to deduct interest paid on the first $750,000 of those combined loans.

Home Improvement Expenses

You can’t usually deduct home improvement expenses directly.9 However, the money you spend on capital improvements (improvements that increase your home’s value) can help reduce your tax bill later. These expenses are added to your home’s “cost basis,”10 which reduces your capital gains tax when you eventually sell the house. Think of it this way: by keeping records of your home improvements, you’re essentially increasing the “price” you’re considered to have paid for your home, thus lowering your profit when you sell.

It’s important to note that not all projects qualify as capital improvement. Basic repairs and updates likely won’t qualify, while major additions and landscaping likely will (the considerations are the same as those used to determine whether home equity loan interest is deductible).

Beyond capital improvement, there are a few specific categories of home improvement that are deductible, including work on home offices (which is subject to specific limitations) and certain modifications for medical/accessibility reasons.11

Energy-Efficient and Clean Energy Tax Credits

Certain energy-efficient home improvements can qualify you for valuable tax credits. Unlike deductions, which reduce your taxable income, tax credits directly reduce your tax bill, making them even more beneficial.

For qualifying energy efficiency expenses in the 2024 tax year12, homeowners can claim up to 30% of qualified expenses on their federal tax return, with a maximum credit of $3,200.13 However, some qualifying expenses, like new exterior doors and windows, come with their own maximum credit limits, so it’s essential to check the specific rules.

Another option is the Residential Clean Energy Tax Credit, which offers a 30% credit for the cost of installing renewable energy systems, such as solar panels, on your primary residence or a second home that you use part-time and don’t rent out.13 Many states also offer their own tax deductions, rebates, or credits related to energy efficiency and clean energy, so be sure to investigate what’s available in your state.

Selling Your Home and Taxes

When you sell your home, the difference between the selling price and what you originally paid for it (plus any major improvements) is called your capital gain. Think of it as your profit from the sale. Let’s walk through a simple example:

Imagine you bought your home for $200,000. Over the years, you invested in some significant upgrades, like a kitchen remodel ($30,000), a new roof ($15,000), and landscaping ($5,000). These are called “capital improvements,” and they increase your home’s “cost basis”—essentially, what the IRS considers you to have invested in the property. In this case, your adjusted cost basis would be $250,000 ($200,000 original price + $50,000 improvements).

Now, let’s say you sell your home for $350,000. Your capital gain would be $100,000 ($350,000 selling price – $250,000 adjusted cost basis).

Capital Gains Exclusion

The good news is that the IRS allows you to exclude a significant portion of your capital gain from taxation!14 If you’re single, you can exclude up to $250,000, and if you’re married filing jointly, you can exclude up to $500,000. To qualify for this exclusion, you need to have owned and used the home as your primary residence for at least two out of the five years before the sale. This is a key factor to consider when deciding how long you plan to live in a home.

Essentially, this exclusion means that, in many cases, homeowners won’t owe any capital gains tax when they sell their primary residence. It’s a valuable tax benefit that can significantly impact your finances. Keep good records of your purchase price and any capital improvements you make to ensure you can accurately calculate your capital gain and take full advantage of the exclusion when you sell.

Record-Keeping Tips for Homeowners

Organized records are essential for taking advantage of tax deductions and credits. Keep all relevant documents, such as mortgage statements, property tax bills, and receipts for home improvements, readily accessible.15 It’s wise to keep both physical and digital copies (scan and save everything!). Store physical copies securely, perhaps in a safe deposit box. Keep all home-related records for as long as you own the home, plus at least three years after you file your tax returns for the year of the sale.

Conclusion

Homeownership offers numerous opportunities to save on taxes. From mortgage interest and property taxes to energy-efficient upgrades and capital gains exclusions, understanding these deductions and credits can significantly reduce your tax burden. Remember, this information is for general guidance only. Consulting with a qualified tax professional is invaluable for personalized advice.

Have questions about real estate or need a referral to a trusted tax advisor? Contact us today!

Note: This information is intended for general guidance only. Tax regulations are subject to change.

Sources:

< Older Post

Newer Post >

The True Cost of Homeownership: What You Pay Beyond the Mortgage

February 2, 2026

When most homebuyers calculate whether they can afford a new home, they focus almost exclusively on one number: the monthly mortgage payment. It's the figure lenders qualify them for, the number discussed during showings, and the benchmark used to determine budgets. The average annual cost of owning and maintaining a single-family home in the U.S., excluding the mortgage itself, is estimated at around $21,400 in 2025—roughly $1,800 per month.¹ When you factor in these national average ownership expenses, a $2,500 monthly mortgage can grow to over $4,000 in total housing costs. for a mortgage answers one question: "Can a bank trust you with this loan?" It doesn't answer the more important one: "Can you comfortably maintain this lifestyle?" In today's market, where nearly 45% of homeowners report post-purchase regrets (most commonly because maintenance and hidden costs were higher than expected), understanding the full financial picture before buying has never been more important.² The Predictable Ongoing Costs Property Taxes Property tax bills have been rising sharply nationwide, with the average reaching $4,271 in 2024 and many homeowners seeing increases of 16% or more. 3 Even where tax rates dip slightly, rising home values keep actual bills climbing—creating the irony that a home's appreciation increases annual expenses. Property taxes aren't truly fixed. Reassessments happen regularly, and as neighborhood values rise, so do tax bills—even when rates stay the same. Homeowners Insurance As of December 2025, the average premium for a new policy rose 8.5% year-over-year . 4 Climate disasters, higher rebuilding costs, and insurer risk recalibration continue driving these increases, and the trend shows no signs of reversing. A homeowner could see their monthly payment jump $200-300 in a single year without taking any action themselves—simply because their mortgage servicer adjusted the escrow to cover higher insurance premiums. HOA Dues About 40% of homes for sale have HOA fees, with median costs around $125 per month, though single-family homes typically range from $200-$300 monthly.⁵ These fees rarely decrease and often include special assessments that can add thousands in unexpected annual costs. Utilities In 2024, energy and utility costs averaged $4,494 annually, with internet and cable adding another $1,515. 1 Buyers moving from apartments to single-family homes often see these costs double due to increased square footage, outdoor irrigation, and climate control demands. Routine Maintenance Beyond emergencies, homes require ongoing care: lawn service, gutter cleaning, pest control, HVAC servicing, and seasonal tasks. These aren't luxuries for many households—they're practical solutions to time constraints and property upkeep. Collectively, these services can add $200-400 monthly to ownership costs. The Irregular—but Inevitable—Expenses Major System Replacements This is where many homeowners get caught off guard. Maintenance and repairs aren't a matter of "if" but "when"—and recent years have made "when" far more expensive. Home maintenance now averages around $8,800 annually, with first-year homeowners often facing even higher costs. 1,6 Major repairs aren't cheap: ● HVAC replacement: $5,000-$10,000 ● Roof replacement: $8,000-$15,000 ● Water heater: $1,200-$2,500 ● Foundation repairs: $4,000-$12,000 These aren't possibilities—they're certainties with varying timelines. Use the inspection as a planning tool. A 15-year-old water heater or aging roof signals $8,000-12,000 in likely expenses within the first few years. That's not a deal-breaker—it's a budget roadmap. Buyers who understand these timelines can plan strategically instead of scrambling when systems fail. Newer isn't maintenance-free. Newer builds offer a temporary reprieve, but systems still age, warranties expire, and eventually every home requires major capital improvements. Emergency repairs happen at the worst times. An HVAC failure during a heat wave, a burst pipe in winter, or storm damage to the roof—these scenarios happen when it's least convenient and most expensive. Without liquid reserves, a single emergency can derail finances entirely. Ownership Costs That Creep Up Over Time Here's what surprises many first-time buyers: the so-called "fixed costs" of homeownership aren't actually fixed. While a locked-rate mortgage provides payment stability, the escrowed components—taxes and insurance—can climb significantly year over year due to inflation, climate risk, and local policy changes. A mortgage payment that felt comfortable at closing can feel tight three years later, even without lifestyle changes. Picture this: a letter arrives saying the monthly payment is increasing $200 because insurance premiums rose and the property was reassessed at a higher value. No move, no refinance, no renovation—yet annual housing costs just jumped $2,400. The same gradual creep affects utilities, maintenance services, and every other aspect of homeownership. Budgeting for homeownership means expecting these costs to rise 3-5% annually. True stability requires planning for volatility. Planning Smarter: How Homeowners Can Stay Ahead The encouraging news: buyer's remorse is largely preventable. The issue isn't buying the wrong house—it's buying without adequate preparation. Create a Dedicated House Repair Fund Separate from emergency savings, this fund exists solely for home maintenance and repairs. Treat it like a non-negotiable monthly bill—set up automatic transfers so it happens without thinking about it. The old rule of saving 1% of your home's value annually? It's outdated. Plan for more—closer to 2-3% of your home's value annually, or whatever amount lets you sleep at night knowing the HVAC won't derail your budget. Don't Drain Your Savings at Closing Cash reserves protect against surprises and prevent forced debt when repairs arise. If possible, keep several thousand dollars liquid after closing rather than putting every available dollar into the down payment or upgrades. That breathing room matters more than most buyers realize. Invest in Preventative Maintenance Annual HVAC servicing, gutter cleaning, and seasonal inspections catch small problems before they become expensive emergencies. A modest service call that prevents a major system failure is always worthwhile. Create a seasonal maintenance calendar: HVAC checkups in spring and fall, gutter cleaning before winter, roof inspections after major storms. Consistency prevents costly surprises. Know Your Home's Systems and Timelines Understanding when major systems were last replaced helps predict future expenses. A 12-year-old water heater isn't an emergency today, but it signals a likely expense within 2-3 years. Planning beats scrambling. When Homeownership Still Make Sense Despite the expenses, homeownership remains one of the most powerful wealth-building tools available to American families—when approached correctly! Long-Term Equity Building Mortgage payments build equity with every payment. Unlike rent, ownership creates a forced savings mechanism that compounds over decades. In most markets, homes appreciate over time, multiplying the wealth-building effect. Stability and Control Homeowners control their living environment. Want to renovate the kitchen, paint the walls, landscape the yard, or install solar panels? Ownership provides autonomy that renting never will. That control has both lifestyle and financial value. Predictability vs. Rent Volatility While ownership costs rise gradually over time, rent increases can be sudden and dramatic—with national rents climbing 31% over the past five year. 7 A fixed-rate mortgage provides payment predictability that renting cannot match. Yes, taxes and insurance increase, but the principal and interest portion—typically 60-70% of the total payment—remains locked. Renters face volatility on 100% of their housing costs. Lifestyle Benefits Beyond finances, homeownership offers intangible benefits: deeper community roots, stability for families, space for hobbies, and the pride of building something that's truly yours. These benefits have real value, even if they don't appear on a balance sheet. The key is ensuring the financial foundation supports the lifestyle, not undermines it. A Better Way to Think About Affordability The true measure of affordability isn't what a lender will approve—it's what allows sleeping well at night when the water heater fails or the insurance premium spikes. The smartest buyers calculate affordability as "mortgage plus carrying costs" from the start, which might narrow the price range slightly but creates breathing room and peace of mind. Homeownership remains one of the most powerful wealth-building tools available, but only when approached with financial realism rather than maximum leverage. Having an honest conversation about what affordability truly looks like isn't about limiting dreams—it's about making sure those dreams don't become financial nightmares. Sources: 1. Bankrate: https://www.bankrate.com/home-equity/hidden-costs-of-homeownership-study/ 2. Bankrate: https://www.bankrate.com/f/102997/x/c84a6b9359/homeowner-regrets-survey-press-release.pdf 3. Matic: https://matic.com/blog/2026-home-insurance-predictions/ 4. NAHB: https://www.nahb.org/blog/2025/12/property-taxes-2024-residential/ 5. Realtor.com: https://www.realtor.com/research/homeowners-associations-2024/ 6. Inman: https://www.inman.com/2026/01/12/as-home-maintenance-costs-rise-agents-turn-to-tools-that-reduce-buyer-risk/ 7. Rentec Direct: https://www.rentecdirect.com/blog/new-data-shows-the-state-of-rent-in-2025-from-rentec-direct/

2026 US Housing Market Forecast: Will the Market Find Its Footing?

January 5, 2026

Will 2026 be the year buyers stop waiting? Forecasters are split, predicting anywhere from 1.7% 1 to 14% 2 growth in home sales. That 12-point gap reveals the central question facing the housing market: how much will slightly lower mortgage rates and slowly eroding lock-in effects actually unlock pent-up demand? Nearly every major forecaster agrees the market will be more active than 2025. But beyond that consensus, predictions diverge sharply on pace and scale. The National Association of Realtors (NAR) expects robust 14% sales growth. Realtor.com sees a modest 1.7% bump. Both could be right for different markets and price points. For anyone planning to buy, sell, or simply understand their home equity position in 2026, these diverging forecasts matter less than the underlying fundamentals. Mortgage rates should settle slightly lower. Inventory will improve modestly. Prices will continue rising, though more slowly than recent years. The market is thawing. More importantly, the housing market appears to be returning to the pace and rhythm of more normal conditions after the artificial volatility of the pandemic era. The 2025 Context: Why the Market Stayed Frozen The 2025 housing market disappointed. Mortgage rates remained stubbornly above 6.5%, suppressing demand and keeping transaction volumes near historic lows. 8 As of mid-2025, more than 80% of U.S. homeowners hold mortgage rates below 6%, reinforcing the lock-in effect that has kept many would-be sellers on the sidelines.³ Affordability challenges reached acute levels. The typical first-time buyer aged to 40 years old 4 , reflecting simple math that monthly payments at elevated rates and prices pushed homeownership out of reach for younger buyers. The market did not crash but did not heal either, with overall transaction volume remaining constrained. 2026 Predictions: Where Forecasters Agree and Disagree Mortgage Rates: Consensus on Modest Improvement Forecasters agree broadly on mortgage rate trajectories. Expectations cluster tightly in the 6.0% to 6.4% range, representing modest but meaningful improvement from 2025 levels. 2026 Mortgage Rate Forecasts

Planning Your 2026 Real Estate Moves: A Guide to the Best Buying and Selling Seasons

December 2, 2025

Timing isn’t everything in real estate, but it can mean the difference between saving $20,000 or paying a premium, selling in 30 days or waiting three months, and negotiating from a position of strength or uncertainty. As we look toward 2026, understanding seasonal patterns has become more critical than ever. With inventory levels normalizing and market conditions continuing to evolve, knowing when to make your move can dramatically impact your outcome. Whether you're a first-time buyer watching every dollar or a seller trying to maximize your profit, the season you choose matters. The challenge? Not everyone can wait for the "perfect" time. Job relocations happen in January. A growing family needs more space in July. Retirement doesn’t wait for spring. This guide breaks down the pros and cons of each season so you can make the smartest decision within your timeline. Spring: Peak Selling Season (March-May) Spring isn’t called peak season by accident. The housing market comes alive with energy that is impossible to ignore. Data shows homes listed in spring sell in as few as 33 days, compared to 49 days in winter. 1 May also offers the highest seller premium, 13.1% above market value, translating to faster sales and higher returns. 2 Buyer psychology also plays a role. Warmer weather encourages open house attendance, longer daylight allows more viewings, and families aim to move before school starts, creating urgency. Spring blooms and greenery boost curb appeal in ways winter staging cannot match. 3 The Competition Factor The trade-off is that spring’s advantages come with more competition. Sellers must make their homes stand out, pricing correctly, staging well, and marketing aggressively. Buyers benefit from the largest inventory, with new properties listed weekly, but face higher competition. In May and June, 35% of buyers pay above list price compared to 24% in January, making bidding wars common and increasing pressure to decide quickly. 4 Summer: Extended Peak Season (June-August) As spring transitions to summer, the market maintains its momentum. June often sees the highest sales volume of the year, with more than 16,500 homes selling per day. 1 The Family Timeline Summer’s appeal aligns with family schedules, as school breaks let children move without disrupting education. Warm weather and long days make moving easier and provide ample time for viewings. Outdoor spaces like pools, patios, and landscaping are at their best. Higher prices and sales activity reflect the premium buyers pay for peak-season convenience. Late Summer Shifts By August, changes appear. Unsold spring or early summer listings may become “stale,” and buyers begin settling as school starts. Competition eases slightly, though prices stay high, making it a transition month where patient buyers can benefit. A practical concern is moving costs, which peak in summer due to high demand. Nearly half of all household moves occur between June and August, increasing competition for movers and rental trucks alike. 5 Fall: Underrated Opportunity Season (September-November) Fall might be real estate's best-kept secret. While conventional wisdom suggests spring is the only time to transact, savvy buyers and sellers increasingly recognize fall's unique advantages. Less Competition, More Serious Players Data shows a large share of home sales occur in the fall, a detail often overlooked. With fewer competing sellers, listings stand out more, and active buyers tend to be serious and ready to act quickly. 3 October typically offers the best conditions for buyers. Data shows it has one of the lowest seller premiums of the year—about 8.8% above market value—as demand cools and competition eases. 2 Home prices also tend to dip slightly from summer highs, saving buyers thousands compared to peak-season purchases. 4 For first-time buyers especially, fall can be an ideal time to find value without the bidding wars of spring and summer. The Urgency Factor Fall brings natural urgency. Buyers aim to close before holidays and bad weather, while sellers may be motivated by taxes or avoiding a winter listing. Comfortable weather in many areas makes showings easier. Fall buyers are often more decisive, with fewer casual browsers and more serious purchasers ready to negotiate. Winter: Value Season (December-February) Winter gets a bad reputation in real estate, but for buyers with flexibility, it offers the year's best value proposition. The Numbers Don’t Lie The low-competition environment in winter provides the best opportunity for buyers to secure a discount. In January, only 24% of buyers pay above list price compared to 35% in May and June, which greatly reduces the chance of bidding wars. 4 This lower competition also means winter homes stay on the market longer, averaging 49 days versus 31 days during peak season, giving buyers more time, less pressure, and stronger negotiating power. 1 Motivated sellers become more flexible as the holidays pass. Moving companies also offer their lowest rates in winter. Winter’s Challenges Winter has trade-offs. Sellers face the lowest buyer traffic, holiday distractions, limited curb appeal from dormant landscaping, and shorter daylight for showings. Yet winter offers advantages. Less competition can help if you price aggressively and present well, and buyers who do visit are highly motivated, often relocating for jobs. Warm-climate markets like Florida and Arizona see smaller winter slowdowns, making location important. 1 Snow and ice create safety hazards, and cold weather makes moving harder. However, winter also reveals property truths, such as heating efficiency, drafty windows, and roof performance, which is all information savvy buyers use during inspections. Regional Differences: Not All Markets Are Equal Seasonal changes in the real estate market depend heavily on location, meaning a strategy that works in one city may fail in another. Markets in the Midwest and Northeast experience the most dramatic seasonal swings due to harsh winters, which push most activity into the short window between May and August. For example, daily home sales in the Midwest often more than double from January to June, with states like Illinois and Ohio seeing significant annual price swings. In contrast, Southern and Western markets enjoy stable, year-round activity because of mild weather. Places like California and most of the South see much less severe slowdowns in winter. The exception markets are those where mild winter weather attracts buyers, like Phoenix, Arizona , where the best selling time is late November. Understanding these local patterns is crucial, as local market dynamics always matter more than general national statistics. Feel free to reach out if you would like to know more about the specific seasonal patterns in your local area. Pricing Strategies by Season Pricing strategy must adapt to seasonal realities. What works in May fails in December, and vice versa. Spring and Summer Pricing During peak season, competitive pricing often attracts multiple offers. Pricing strategically 10–15% below comparable sales can spark competition and push final offers above list. Psychological pricing also matters; listing slightly under round numbers ($349,000 instead of $350,000) increases online visibility and appeals to buyer behavior. Emphasizing seasonal features such as outdoor spaces, natural light, and blooming gardens helps justify premium pricing. 3 Fall Reality Check As competition declines in fall, pricing should be more realistic. Listing slightly below spring comparables can help generate activity. Flexibility on price attracts serious year-end buyers eager to close before the holidays and bad weather. Recognizing buyer urgency allows you to price strategically rather than reactively. 2 Winter Aggression Winter requires more aggressive pricing to attract a smaller buyer pool. Pricing 5–10% below spring values can create immediate interest. Motivated sellers should focus on value over premium pricing. Buyers shopping in January aren’t bargain hunters, they’re seeking homes that justify moving during an inconvenient season. 1 Year-round best practices stay consistent: use a Comparative Market Analysis, consider current market conditions, account for unique property features that algorithms may overlook, and monitor comparable sales while staying open to adjustments. Buyer Offer Strategies by Season Spring and Summer Competition Peak season requires quick, confident action. Get pre-approved to show you’re a serious buyer and be ready to move fast. Consider offering above asking price when you find the right property, and use an escalation clause to outbid competitors up to your limit. Flexible closing dates also strengthen your offer. Some buyers write personal letters to create emotional connections. Fall and Winter Leverage Negotiating power shifts with the seasons. In fall and winter, when seller competition drops and buyer pools shrink, you gain leverage. You can more easily request seller concessions such as closing costs, home warranties, repairs, or even appliances and fixtures. Use inspection results to negotiate price reductions, as motivated sellers grow more flexible later in the season. You can also request longer inspection periods and winter move-in credits.¹ Year-Round Negotiation Fundamentals No matter the season, understanding the seller’s motivation is key. Support your offer with market data rather than emotion, and build rapport when possible. Stay calm and avoid emotional decisions. Have your agent handle offers and counteroffers to reduce tension. Know your limits and walk away from deals that don’t fit your goals. In buyer’s markets, be assertive; in seller’s markets, make offers strong and decisive. The fundamentals stay the same, though their intensity shifts with the season. BOTTOMLINE Seasonality creates opportunities and challenges, but personal circumstances should drive timing. Spring/early summer brings the highest prices and fastest sales. Winter offers buyers the best deals. Waiting for the “perfect” season doesn’t help if life demands action. Understanding your specific situation, timeline, and goals allows us to create a customized strategy that maximizes outcomes within your constraints. The best time to move is when it's right for you. Sources 1. National Association of REALTORS®. Navigating the Housing Market: A Seasonal Perspective. 2024. https://www.nar.realtor/blogs/economists-outlook/navigating-the-housing-market-a-seasonal-perspective 2. Bankrate. Best Time to Sell a House. 2024 https://www.bankrate.com/real-estate/best-time-to-sell-house 3. Investopedia. How Seasons Impact Real Estate More Than You Think. 2024. https://www.investopedia.com/articles/investing/010717/seasons-impact-real-estate-more-you-think.asp 4. Zillow https://www.zillow.com/learn/best-time-to-buy-a-house/ 5. My Moving Journey https://mymovingjourney.com/blogs/moving-in-peak-season-vs-off-season

Home-Related Tax Deductions

The True Cost of Homeownership: What You Pay Beyond the Mortgage

2026 US Housing Market Forecast: Will the Market Find Its Footing?

Planning Your 2026 Real Estate Moves: A Guide to the Best Buying and Selling Seasons

CONTACT

Office

(267) 733-0777

FIND US

QUICK LINKS

CONNECT