When it comes to purchasing rental properties, there are a number of factors outside of the regular ebb and flow of the market that dictate the best time of the year to invest. One of the biggest factors is competition. The more buyers there are, the less incentive sellers have to reduce prices or offer better terms. So when is the time to strike while the competition isn’t as fierce?
Winter, the Season That Keeps on Giving
Think about how you and your family tend to spend winter. Cozy nights by the fire, beautiful walks through the snowy afternoons and taking time to just relax. The last thing most people want to do is start the process of buying a home, meaning that you’ll be able to take advantage of the seasonal buyer’s market.
The same goes for sellers. If a homeowner is choosing to leave their property on the market in winter, they’re likely eager to sell and move on instead of taking time away for the holidays. This is important as many sellers side with homebuyers and take the winter off to get away from the cold weather for a while.
Everyone Wants a Faster Closing
As with everything in winter, buyers and sellers both want to wrap up anything that will make them leave the house and brave the dropping temperatures. Add on planned holiday vacations or family plans and it creates the perfect set of conditions for getting property at discounted prices and with expedited sales processing. Sellers looking to get rid of their property before the end of the year for tax purposes will also pass along more savings to you since they’ll get value during the next tax season.
Because of this time crunch, many sellers run into issues finding bids for their property. If you’re in the position of being the only interested party then you have leverage to get a lower sales price and other incentives from the seller such as covering closing costs and other fees. Sellers will be more than happy to accommodate these kinds of bonuses if it means finalizing a sale.
Going along with the desire to stay out of the snow and ice is the fact that most families and buyers who are looking to settle down rather than invest won’t be in the market during the winter months. It can be difficult to relocate with weather that isn’t exactly friendly for moving trucks and long-distance drives.
Be Ready For the Upcoming Winter Market
It doesn’t matter if you’re looking to get your first investment property or want to branch out into new territory with your existing portfolio, the Potempa Team is ready to help you get the lending solutions you need. From traditional mortgages to jumbo loans for luxury homes, our lineup of expert agents are able to work with your budget and goals to find the terms that fit like a glove.
When you’re ready to get started, reach out to us online or over the phone for a quick consultation on how we can help.