Is There a Certain Time of Year That's Better for Investing in Real Estate?

Buying an investment property is a big commitment, and your goal is to get the best value at the best price. While the real estate market wants you to believe that location is the only important factor in your decision, smart buyers know there's more that goes into success.

Timing is key to profitable real estate investment, and that doesn’t just refer to the general year-over-year health of the market.

You can purchase a higher-quality property in a better location if you time your offer for real estate’s slowest periods.

The Best Time of Year to Purchase Investment Property

Real estate is cyclical, and you often hear about buyer’s markets and seller’s markets.

Buyer’s markets are the best time to purchase real estate, specifically because no one else wants to buy. There are lots of homes on the market, and sellers must compete by lowering prices or offering incentives.

Conversely, seller’s markets are the best time to list a property, because there are too many buyers for the number of homes available.

Under these circumstances, motivated buyers typically have to pay the asking price, and in some cases, bidding wars ensue.

In addition to the long-term real estate cycle, there is a seasonal pattern to buyer’s and seller’s markets.

Many agents target their listings for spring and summer, because the warmer weather makes house hunting far more enjoyable.

Moving during the winter months is a hassle, and buyers are few and far between.

Investors can find a great deal on property during the winter months, especially during the holidays, because there's virtually no competition.

Those listing their properties despite the hustle and bustle of the holiday season typically have a pressing reason to sell, and this motivation can translate into a lower price for you.

In addition, sellers will be far more willing to entertain any stipulations you include with your offer, and they're more likely to agree to pay the expenses of necessary repairs identified through the inspection process.

You may have fewer options to choose from, but you're likely to find a good match at a great price.

As an added benefit, when you buy during the winter months, the process is likely to move along quickly.

You won’t be competing for attention from mortgage brokers, real estate agents and the other service providers involved in real estate transactions, which cuts down on waiting time for all of the tasks that need doing before you can close.

The Downside of Buying Investment Property in the Winter

Of course, buying an investment property during the winter months is not without challenges.

The most critical is the possibility that snow is covering major structural or aesthetic issues that you would be better able to see in the spring.

Be sure your inspector pays special attention to outdoor features like swimming pools, and protect yourself against problems with the roof and air conditioning.

You should also be prepared for potential landscaping nightmares once the snow melts.

On the positive side, seeing the property under the most stressful weather conditions gives you a better understanding of what you might face as the building’s owner.

Examining the performance of windows, pipes, insulation, and similar items under the worst conditions is far more realistic than seeing these same components during the summer months.

Despite the difficulties involved in purchasing property during the winter, the payoff can be well worth the trouble.

Any repairs or remodeling can be completed before things thaw out, so when potential tenants are ready to move, you'll be ready, too.

Posted on Mar 23, 2016


Tips on Buying Real Estate for Rental Income

There are five basic types of real estate investments properties: Residential – single family homes to rent or rollover Commercial – Apartments and office buildings Domestic vacation – In the US:... More

Why Renting Homes Has Increased in Demand

The New Popularity with Renting It seems as if the mortgage crisis not only saw a drop in home value, but resulted in individual preferences leaning towards the desire to rent versus own a home. What... More

Most Expensive and Cheapest Rental Markets in the United States

The Rental Market Around the U.S. As people relocated from coast to coast, or any state in between, the rental market is priced at various cost levels. Here is a look at some of the most expensive and... More

Top 10 Healthiest Real Estate Markets for 2013

Healthiest Real Estate Markets for 2013 The housing market this year is showing a lot of promise as home prices rise 4.9% nationwide. Based on the median rent and sale prices nationwide, here is a... More

Most Important Leasing Factors for Generation Y Renters

Leasing to Millennials With an estimated 8 million Gen Y renters hitting the marketplace in the near future, prepare yourself to accommodate these informed and technologically advanced prospects.... More

Average Rent Per Month in the United Kingdom (UK)

Renting in the UK Renting offers its own list of benefits and down slides. Here is a look at unspoken rules to follow when renting in the UK. Location Don’t put all your faith in a single location.... More

Current Trends in Apartment Renting and Leasing

Apartment Renting Trends As renting grows in popularity, trends are bound to change. The Renting Demographic Over 75 million baby boomers are looking to downsize into urban apartments to live a... More

Most Romantic Cities to Rent a Home In

The 10 Most Romantic Cities in the U.S. A listing of the ten most romantic cities in the United States. These cities not only show strong housing markets, but are increasingly considered highly... More

The Pros and Cons of Renting a Property

Rent or Own? In today’s economy, the housing market can seem like a scary place. Before making your decision to either rent or own, here is a listing of the pros and cons of either option. Pros of... More

Buying vs. Leasing a Commercial Property

Commercial Leasing vs. Purchasing If you are looking at developing equity for your business, first consider your options of leasing versus purchasing commercial property. Performing market research in... More