Holiday season can offer homeowners, buyers opportunities

Because there aren’t a lot of properties for sale in closer-in neighborhoods, Kessler says, “There are a lot of good real estate agents who are looking for business right now. It’s possible you could negotiate a reduced commission.” More importantly, he says, “You stand a better chance of getting a great agent who really knows what they are doing. Now you’ll get their attention since they aren’t spread so thin.”

Since some sellers are eager to unload their properties by the end of the year, buyers are often in a better position to snag a deal. “The hurry to sell means you could have the possibility of a seller more willing to negotiate on the price,” says Kimberly Cestari, a Chevy Chase-based agent with W.C. & A.N. Miller. She recalls ratifying an offer on Christmas Eve in 2009.

Agent Doris Leadbetter of Keller Williams Realty in Reston is selling the Cummingses’ house and says the holiday season attracts out-of-town buyers who are planning to relocate to the Washington area and spend their vacations shopping for houses. “They can use their days off and bring their children with them. Our market is active with government contractors and tech jobs, and many look to buy when they are here interviewing.”

The slowdown at year’s end can also work to a seller’s advantage. “A lot of people are at home surfing the Web and planning New Year’s resolutions,” says real estate agent Michelle Morris of Remax Gateway in Fairfax. “Part of that may be focused on buying a new home.”

With the uptick in the residential market over the past year, Monica Murphy of Preferred Staging in Potomac Falls says she prepared several properties for sale last January that became the subjects of bidding wars. “If your home is already on the market in December, you’ve got a head start,” Murphy says. “The holidays are just a hiccup between the fall and spring markets, and not as big of a gap as in the past.”

A tax break, for now

Selling this month rather than waiting until next year offers tax advantages for some homeowners expecting a windfall after they close the deal. Beginning Jan. 1, a 3.8 percent tax on some real estate transactions will take effect as the result of funding provisions in the 2010 Affordable Care Act.

The new tax does not affect the current tax-free threshold of $250,000 (single filers) and $500,000 (joint filers) of profit from the sale of your principal home.

But you will have to pay the tax if you sell your home for a substantial profit and your adjusted gross income is more than $200,000 as an individual or $250,000 for a couple filing a joint return. That increase could affect “older people who have paid off their mortgages and are now going to sell, not just the wealthy,” says Kessler.

For military veterans and active-duty service members, closing a home purchase before year’s end may offer mortgage financing advantages, according to Debbie Polcyn of First Savings Mortgage Corp. in Bethesda. She says the maximum temporary Veterans Administration loan limit for the D.C. metro area of $838,750 will expire on Dec. 31 unless the VA acts to renew it. That amount is the maximum of 100 percent financing guaranteed by the VA to those veterans and service members with full entitlement.

To speed up end-of-the-year deals, some experts recommend that sellers offer financial incentives, such as paying bonuses to real estate agents who bring a buyer to the table, or covering closing costs. “Tell the buyer you’ll pay six months of condo fees if you can go to settlement by Dec. 31. It resonates with buyers looking for a deal,” says Knull.

Watch the decor

Holiday decor can also be used to entice shoppers to buy. “Most houses show beautifully with decorations and take on the joy of the season,” says Cestari. “With the scent of candles and holiday baking, buyers can get swept up in the feeling of the holidays and see a listing as their future home.”

But stager Murphy warns that greenery and ornaments can make rooms look smaller and distract prospective buyers’ attention. “A tree in the corner can take up a lot of space and a mantel with swags can camouflage a fireplace, one of the best aspects of a house.”

She and others recommend the simplest of holiday decorations, such as seasonal wreaths and non-flashing white lights, and warn against religious touches. “Too much baby Jesus or too much Hanukkah can be a turnoff,” says Knull.