If you are interested in investment property management, then there are a number of factors that you will have to consider. The time of the year is one of the many things that a rental property investor takes into account to fine homes for ‘at-price’ or below list. Not to mention, much of the competition is off the market due to half of home purchases take place during the fast paced, over-priced spring and summer months.
However, studies have shown that people who purchase a home in October get a 2.6% fair market value discount. And those people who purchase a home in December and January get a 2% fair market value discount.
Fair market value discounts drop during the spring months. That is why the best time for a rental property investor to purchase property can be during the winter months. There are several other reasons why investors should buy property during the winter and our team helps explain a little more below.
Increased Demand During the Spring and Summer Months
Many people purchase homes during the spring and summer months. People who have families move during the summer months because they do not want their children’s school schedule disrupted. Competition increases when the demand increases. This increases property prices.
Most people are not interested in moving during the winter months. They spend time with their family during the holidays. They also do not have extra money for moving. This is why there is less competition. You will have fewer people to compete with if you buy property during winter.
Decreased demand creates a problem with sellers. Many sellers are impatient and do not want to wait until the warmer months. That is why they are willing to decrease their prices. However, you have to be careful. Some sellers will sell property that is in poor condition.
Climate can change the way that a property looks. A property may look great in the summer, but it can look dull in the winter. Snow can hide the more appealing features of the home and make people less likely to buy, hence why sellers are willing to lower their prices in the winter.
Get in touch with our Apex property managers today for more information or to schedule a meeting with our team!
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