House to House: Selling A Home for the Holidays?

Photo courtesy of Amy Glover Bryant

I’ve always thought that listing a house for sale at Christmas was a bad idea. I figured that the holidays were crazy and cold enough without adding the stress of shopping for a house to people’s lists. Plus, aren’t homes just easier to sell when the flowers are blooming and the weather is welcoming? Isn’t that usually the spring and summer months (although in Arkansas you never know). Then again, I think my house always looks its best at Christmas and, with mortgage rates at historic lows right now, perhaps it’s not such a bad idea to try and sell one’s home at the holidays.

Not knowing which way to turn in my thinking, I did a little research and asked a few Realtor® and mortgage banking friends what they thought.

As I’ve previously pointed out in this column, smell has a tremendous impact on what people think of your home. In fact, the smell of fresh baked goods is the scent the Scent Marketing Institute recommends for inspiring folks to purchase a home. Christmas is full of wonderful smells: apple cider, sugar cookies, evergreen trees, peppermints. You could even leave some of the baked goodies and cider out for prospective buyers to enjoy.

I also think there is no better feeling than to walk out of a cold, blustery day into a warm home filled with yummy sights and smells. It’s cold out there and your house is going to feel like a haven in a cold world to prospective buyers.

Houses show better when decorated for the holidays. From all accounts you definitely should decorate, but do so in a way that helps your home look inviting, homey and welcoming.

Photo courtesy of Amy Glover Bryant

Cindy Meyers of Meyers Realty in Hot Springs had this to say, “Even if your home sells during the holidays it won't close until after. It's your home, live in it and enjoy the holidays with family and friends.” Karen Crowson at Crye-Leike Realtors® in Benton completely agrees, “Life has to continue,” says Crowson. “Decorate but consult your Realtor®. He or she can help keep cluttered decorations to a minimum so buyers can focus on your home’s attributes.”

According to Little Rock Realtor® Wally Loveless another reason to consider selling during the Christmas season is that any prospect that is looking for a home has a deadline. There are no casual prospects just passing time. So when you do have a showing it will be to someone who is serious.

There are also strong tax incentives motivating buyers to purchase a home before the end of the year. I’m definitely no tax professional but from what I understand the major tax factor is that the buyer can deduct most of their major closing costs such as the origination fee, appraisal, title insurance policy, etc. on their 2010 income tax. According to Loveless even if the seller pays the costs for the buyer the IRS has ruled that the cost are imputed to the buyer as included in the cost of the home.

Furthermore, in 2011 the buyer will be able to deduct their mortgage interest and property taxes on their income tax return. These deductions can be significant, particularly in the earlier years of a mortgage when you are paying off so much interest.

"In many cases, there are certain tax advantages to buying a home. Closing the loan on a new home during the holidays could lower the amount of taxes paid or increase a return - as always you should check with your tax professional," says Justin Moore, President of the Arkansas Mortgage Bankers Association.

According to Jim Cargill, President of Arvest Bank in Little Rock, not only are interest rates at historic lows right now but the services that support the home sale such as the banks, title companies and appraisal services are less busy during this season which could result in a more streamlined closing time-table.

Cargill also pointed out that although it is generally a slower time in home sales, some families are relocating for the start of a new job in a new year. “Relocating ‘at semester’ for families with school-aged children, allows for somewhat less disruptive transition to a new school, as opposed to during the semester,” he said.

As one Arkansas Realtor® put it, we all have a bit more of a “warm fuzzy feeling” at the holidays. Perhaps that “better, more softened frame of mind” will drive buyers to take that leap of faith and purchase your home – hopefully for the price you are asking.

Finally if you are concerned about the inconvenience of having to empty your house of friends and family in order for buyers to tour it remember you have the option to restrict showings to times that are convenient for you. Good luck and happy holidays!

♦♦♦

House to House is written by Amy Glover Bryant, APR and distributed weekly by the Arkansas Realtors®  Association.