Thinking of buying a home next year?
Here’s something to consider: moving up your timeline might actually save you a lot of money.
Right now, the housing market is presenting a rare opportunity for buyers. Inventory is at its highest point in a decade, which means there are more homes available to choose from. Sellers are also more willing to negotiate on price and terms than they have been in years. It’s a buyer’s market in many areas, including Arvada and the Denver Metro area, so if you’ve been waiting to make a move, now might be the time.
But what does that mean for renters?
If you’re currently renting and thinking of buying a house next year, it might be worth breaking your lease and jumping into the market sooner. Yes, breaking a lease can come with penalties—usually in the form of a few thousand dollars. But here’s the catch: that upfront cost could be a drop in the bucket compared to the money you could save by purchasing a home now instead of waiting until the busy spring market when prices rise.
Breaking your lease might seem like a drastic move, but let’s consider the potential benefits:
Current Market Advantages
Right now, buyers often have the upper hand. With more homes on the market, you’ll have a wider selection of properties to choose from, and you’ll likely face less competition from other buyers.
Better Negotiating Power
With sellers more willing to negotiate, you could save thousands on the purchase price or get concessions that you might not see in a busier market.
Future Market Conditions
Historically, spring and summer bring more buyers into the market, which can drive prices up. Waiting could mean paying more for the same home or settling for less as inventory tightens and competition increases.
So, what’s the cost of breaking a lease?
Sure, you might have to pay a penalty, which could range from a couple of thousand dollars depending on your rental agreement. But in the grand scheme of things, that upfront cost could be a smart investment. If buying now saves you from paying tens of thousands more for a home next year, breaking your lease becomes a small price to pay.
I’ve been helping buyers navigate these decisions for years as part of the Dempsey Group. If you’re a renter looking to buy a home in Arvada or the greater Denver Metro area, I’d love to help you evaluate your options.
If you are looking for daily insight and tips on today’s market, follow Lauryn Dempsey on LinkedIn. If Lauryn can help you strategize your next steps in real estate in the Denver Metro Area or elsewhere across the U.S., please book a call!