Why Winter Is the Best Time for Real Estate Investment
When looking for real estate, it’s well known that spring and summer are the busiest times of year for most buyers and sellers. The warmer weather makes for an ideal time for people to spruce up their properties, and with school out, it’s a great time for families to move.
However, the winter months are actually the best time for investors to find properties merely because they are not ideal for most people. If you are curious as to the advantage of buying in the winter, see below for the exact reasons why you should bundle up and start hunting now.
Sellers will be desperate. If a seller is not willing to wait just a few more months until it becomes more of a seller’s market, then they are probably just desperate to get rid of the property. Highly motivated sellers mean a drop in prices, fewer negotiations and they are a lot more willing to compromise. Many factors can make a seller need to get rid of a property fast, and they will be ecstatic that any person is willing to look at the property during the off-season months.
There will be much less competition. Nothing stings more than getting into a bidding war over a property with several other buyers. Sometimes these things can drag out for months, with price increases, cash offers or other incentives giving the competition an edge over your bid. In the winter months, there are not many people looking for properties due to the holidays or school schedules. With less competition, you can secure a property quickly and without much hassle.
It’s a great test run for properties. In the winter months, properties tend to be at their worst. The landscaping is bare, and the elements are testing the foundation and internal systems to their maxium potential. Problems with a property tend to show more in the winter months, so if you want to know what things are really going to be like year round, this is the best time to give the property a good test run. Sellers also know that there’s going to be no way to hide the issues with the property during the winter months, so they may be willing to have things fixed quickly to keep the sale.
Interest rates will be lower. If you are looking for a commercial property loan or a real estate development loan to get your property quickly, lenders will be offering lower interest rates to keep business up during the off season. Hard money lenders can help you move quickly by providing a short-term loan even if your credit is not ready for a conventional loan. By fixing up a property for resale during the winter months, you can have a quick turnaround and have it ready to sell during peak season.