Why The End of The Year Can Be the Best Time to Buy Investment Property
If you’re hunting for a rental income property at an attractive price, you might be wondering when the best time of year to buy an investment property is.
Fortunately, technology is transforming the way people invest in real estate. Online marketplaces are making it easier than ever to get great deals on investment properties — no matter where you live or what time of year it is.
However, if you decide to go the traditional route of searching for an investment property, you may find that the end of the year brings the best bargains.
Here are six reasons why November and December can be a cool time to buy an investment property:
1. Fewer sellers are putting their homes on the market
Fall weather tends to put a chill on home buying. After all, how many sellers want to open their house to buyers who are trudging through the water puddles and brave slick walkways to view properties?
The answer: motivated sellers and savvy investors who know the majority of their competition is planning to stay put until the sun returns. Normally, existing home sales are relatively flat toward the end of the year.
For motivated buyers who want to stay ahead of the competition, Hale adds that “now could be the best time for some buyers, depending on their priorities.” That’s because housing prices typically begin to pick up between mid-January and early February.
Fewer buyers lowers your risk of competing against all-cash, over-asking price offers and increases your negotiating power with sellers.
2. Lower sale prices while they last
Housing experts have become more bullish on the housing market, and are now more optimistic about 2021 home price growth than they’ve been in more than three years.
Although there may not be as many listings this time of year, many home buyers consider October to December the best time to buy a house because of price reductions. Sellers whose listings haven’t yet sold tend to be more motivated as the holidays near.
So is it really better to buy in November and December? Both sides have their defenders.
Pros of buying a house in November and December
- Slow selling months of November and December give buyers a big advantage
- Real estate agents, mortgage brokers, and home inspectors have more time on their hands, making your transaction smoother and faster
- Sellers may be under intense personal pressure from health, work, or marital issues that force them to sell at a bad time of year
- End-of-the-year tax deductions if you close on your home purchase before December 31st
Cons of buying a house in November and December
- Sellers may think a buyer is desperate to make a deal when they shop outside of the normal selling season
- Air conditioning and landscape watering systems are difficult to accurately check when temperatures begin to cool
- Fewer homes on the market mean your purchase options may be limited
- Waiting too late in the year to buy can actually take longer to close due to holiday vacations and earlier-than-expected winter weather
3. Time is on your side
When looking through listings, be sure to pay attention to the total number of days each home has been on the market, aka the “cumulative days on market.” If a property has been lingering on the market for several months, sellers may be more motivated to enter negotiations. This puts buyers in a stronger bargaining position.
4. Motivated sellers
Realtors usually recommend sellers hold off on listing their properties until the spring and summer. Homeowners who choose to put their homes up for sale toward the end of the year are probably doing so because they need or want to sell now. Whether the pressure to move is due to a job relocation, financial reasons, or family issues, these sellers may be open to a lower offer and might close faster.
5. There are more open houses.
Another reason why real estate activity spikes during the holidays has to do with businesses that make significant changes late in the calendar year. As a result, employees being relocated have a short window to end one chapter and begin another. These sellers are motivated to move and ready to negotiate. Others sellers are traveling during the holidays and thus more willing to welcome prospective buyers into their homes over the holidays.
6. The holidays give you the time needed to explore.
I can’t tell you how many times I’ve shown a listing to prospective homeowners that have just finished a long work day. They’re tired. They’re hungry. And they’re not in the right frame of mind to view their potential dream home. Smart investors will clear time over the holidays to do their homework. Because so many of my clients understand how important this is, I’ll have more showings in December than any month of the year. Investing quality time now will pay handsome dividends down the road.
While November and December may bring less competition and potentially better deals, today’s rental property investors can access affordable, cash-flowing rental properties—no matter the season.
So even if you get swept up in new year to-do lists (yes, we hear that school fees calling too) and don’t get around to real estate investing this holiday, at https://sirfrancismarketingltd.co.ke/, we make any time of year a great time to buy rental property. +254722720812