Advantages to closing before the end of the year

When you are buying a house around the end of the year, it's logical to ask "Are there advantages to closing prior to the end of the year or is it better to wait for the new year?"

Whether or not it is advantageous depends on your situation, but the factors to consider are listed below:

- Homestead Exemption: Local governments give a discount on property taxes for homes that are owner occupied on January 1st. For buyers purchasing a home that is not currently owner occupied, this can be a savings on their property tax bill.

- Prepaid Finance Charges: These charges are a portion of the closing costs associated with buying a home. Some closing costs can be deducted on your income taxes just like mortgage interest. For a breakdown of which costs are deductible, email me or call our closing attorney, Charlie Pollard, with Partnership Title - 404-207-1620. Depending on your tax situation, it may be better to have this write off in one tax year or the other. Ask your accountant!

- New Year's Day Moving Party: You may be able to sucker a few friends into helping you move since they have a day off work! Just don't tell them I suggested it!

It's too late to close on a house in 2010, but keep these items in mind if you are in this situation in the future!

Happy New Year!

Justin Landis
Keller Williams
Justin.Landis@kw.com