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The Worst Day of the Year to Buy a Home: Why You Should Never Buy on this Day

Majority of home buyers decide to buy their houses in spring. There are a couple of reasons for this. First, buyers are excited that winter has just passed. Then the school year usually ends in spring so buyers want to move to a new home immediately school closes. Furthermore, there are more homes listed in spring. The list of reasons goes on and on.

So what is the worst day of the year to buy a home? Research has shown that it is the last Friday in the month of May. The major reason for this is not farfetched. A lot of home buyers eventually decide on the home they want in April. Then they make a purchase offer whose closing date is the terminal Friday in May. Consequently, there are hundreds or even thousands of deals to be closed on the same Friday in May. So why is this day the worst day of the year to buy a home? Here are a couple of reasons why you should avoid this date.

1. The Best Homes Sell at a Much Higher Price

If the property you want to buy is very appealing and it is situated in a desirable location, several other buyers will want to buy it. This will eventually lead to multiple offers. In order to beat the competition, a buyer could end up paying a lot more than they initially planned to pay.

2. You May Experience Delays in Closing

Pending sales and purchase offers usually reach their peak around April. This leads to a huge amount of deals to be closed in May. Real estate agents and realtors usually experience about three times their normal workload at this time. This can easily result in a backlog that will ultimately cause delays in closing.

3. Memorial Day Makes Processing Slower

Due to the Memorial Day holiday, several people go out of town to enjoy the long weekend. This could easily result in delay. Many times, your lender will not be able to process your loan documents as fast as they should. The fewer working days makes efficient service more difficult. So the processing of some files will be shifted to June. If you are unlucky, your file may be one of those kept till the next month.

4. You Could Pay More for a Delay in Closing

If you had applied for a 30 day loan, the rate will no longer be valid after 30 days. If the rate is increased, you will end up paying a higher interest rate. This will mean that you will pay a higher amount on your mortgage.

5. Your Movers Will Charge You More

Moving companies increase their fees during this period. As the demand rises, they try to take advantage of the higher demand and they raise the costs. But sometimes, the demand may be so high that you may not even get a moving company to hire. In fact, some popular movers will be booked till the end of July. Even new entrants into the moving industry will still charge much higher fees.