Some Benefits to Investing in Real Estate in the Colder Months
Buying real estate during the winter months can provide some tremendous benefits for real estate investors. According Than Merrill – real estate investor and educator, “While summer and spring have earned the right as the most active time of the year for real estate investors, those that take advantage of the winter months could be in for a big surprise.”
One of the biggest advantages is that sellers who listed their properties during the summer months are often worn out by the time winter rolls around and their home is still listed. This puts investors in a great position to negotiate and strike a deal at the lowest price point. Here are some other advantages to investing in real estate during the winter.
Far Less Competition
Many people consider fall as the off-season for real estate. This leads to far less competition for investors during the winter months and narrows the field of motivated sellers that are working with multiple potential investors. For the most part, investing in real estate during the winter eliminates the hassle of bidding wars and clears the way for smoother negotiations.
Studies suggest that home prices usually rise around 3 percent on average each year and most of the gains occur during the spring and summer months. Studies also suggest that prices tend to fall during the winter months, which makes it easier for real estate investors to find properties at their lowest price points during the year. With more desperate sellers than there are buyers during the winter months, it only leads to one thing, even cheaper prices.
Bank Inventory and the Winter Months
Many successful real estate investors know that the winter months are a great time to buy investment properties from lending institutions. Lenders want to clear out their inventory of bank- owned properties by the end of the year. Banks are not in the business of selling properties, and they certainly do not want to spend the extra money it costs to hold foreclosed properties. For …