You’ve no doubt heard the concern that real estate sells best in the Spring and Summer – that the worst time for buying and selling houses is Winter.
And, Winter is coming! So what should you do?
First of all, don’t panic! We’ve been investing in real estate full time since January 2005 and here’s what we’ve found, not only for ourselves but for most of the other investors we know: True – the number of calls you’ll get from sellers and the number of offers you’ll get from buyers will decline.
However, also true – the quality of those contacts will be much higher. Both buyers and sellers calling during these months are serious! So no, Winter is not the season to panic. In fact, some of our most profitable deals come at the end of the year.
I’ve heard many investors say that December and/or January are their most profitable months. Why?
- A lot of investors as well as real estate agents get out of the business during these months. They cut back or stop their marketing all together and often use these months to vacation. So, as long as you’re still active, you’re the one who will get the buy/sell calls.
- Many high net worth individuals need to use up cash to avoid taxes before year end and they turn to real estate. Now is a great time for you to be calling CPAs and tax advisors to let them know how you can help these clients.
- While families are together over the holidays, decisions are made regarding many things including real estate, such decisions as what to do with their parent’s home or that it’s time to stop dealing with inherited properties. These sellers call us in January needing to sell estate properties.
- Fewer buyers during the holidays means less buying competition for us as investors and fewer buyers means sellers reduce prices to get their homes sold. This is the perfect time to buy at discount and begin renovating so your property is back on the market in time for prime selling season, Spring!
Bottom line, don’t panic. Get excited and be prepared to provide solutions for those needing to buy and sell in the winter months. The market is less active, meaning less competition, and the buyers and sellers out there are far more serious than the casual shoppers who come back out in the Spring.
What’s been your experience in the Winter months? What will you do differently this Winter?
Here’s wishing you Happy Winter Investing!