If you’ve been considering completing a real estate investment project, now is the time to purchase your property. The spring real estate market is right around the corner, and you have the opportunity to take advantage of the start of this year’s spring rush. Putting your property on the market at the very beginning of the selling season will increase your chances of getting a good offer before the market goes through its cycle again.
Motivated Sellers
Real estate is a human condition, and sometimes people just can’t avoid selling their home. Maybe they have to relocate for a new job or they just went through a divorce and they don’t have the time to wait for the “seller’s market” to come around. And when someone is forced to sell during the winter, investors can take advantage of these opportunities that every day traditional home buyers might not consider because they have the ability to wait until a more competitive market. It’s a known fact that supply is generally much lower in the winter, meaning many potential buyers aren’t even thinking about looking for their new home yet. Use this to your advantage to purchase your investment property, and turn it around in time for the buyers who are waiting for the spring market.
Less Competition When You Sell
Prime selling season is May to August. Listing your home in mid-March gives you a leg-up on the competition. Listing early virtually ensures you’ll have less competition than you would in May when the market is flooded with new listings. However, if the spring market is slower than average, you may also run the risk of being out on the market too early and risk your property staying on the market too long. The best way to judge this is to meet with a local real estate professional who knows the current market.
Higher Listing Prices
In the housing market, prices are highest during the prime season. By looking ahead and preparing your property for sale in the spring market, you are giving yourself the option to list at the highest price possible. In other markets, high inventory equals lower prices. But in the housing market, a well-priced home selling in the peak season usually garners multiple offers and can even sell for more than the asking price.
Construction
Purchasing your investment property in January gives you ample time to complete any renovations or rebuilds your property may need. Typically, it will take anywhere from 2 to 3 months to renovate an investment property. If there is a harsh winter, your construction time could extend longer than you had planned, and you still want to be able to deliver on time. Purchasing early helps you avoid extending your timeline past your comfort zone. One piece of advice is to consider purchasing your property after the Christmas and New Year holidays. The two week time-frame between Christmas and the New Year is almost always slower if not completely stalled. If you are working with a lender, remember that you will be paying interest on each of those days that your property is not being worked on and those are financing costs you could be saving.