Buyers
Many of my clients have asked me, “What is the best time of year to buy Real Estate?” The answer to that question depends on what type of Real Estate you plan to buy. I will outline some of the best times to buy different types of Real Estate
Single-Family Homes – The best time to buy a single-family home is the summer. New homes come on the market every day during the summer months and the weather and timing are both perfect for a family move. However, if you want the best price for a single-family home, you may be better off buying during the slower fall and winter seasons. You are more likely to find motivated sellers during the cold months than you are when it is warm. There is approximately a $12,000 price difference in the average home price for the month of July, and the average home price in the month of September. You will also find less competition when the weather is cold than you will when everyone is looking to move. My recommendation would be to buy a single-family home in the fall or winter. You will find typically find better service from your Realtor as well as lower home prices. I will also caution that, when you find the right home for you, don’t hesitate! Put in your offer right away. The biggest mistake people make is assuming the right home will last on the market. No matter what time of year it is, if the home is exactly what you are looking for it will not last on the market.
Multi-Family Homes – The best time to buy a multi-family home for an owner occupant is the spring. The prices of multi-family properties depend less on the motivation of the seller and more on the rent values, so you won’t have the same market trends as you will with single-family homes. If you want to live in a multi-family home you will need to prepare to evict a tenant from the unit you would like to live in. The easiest and most compassionate time of year to evict a tenant due to your purchase of the property is the spring or summer when the weather is warm. If you must buy a multi-family owner occupied property in the colder months try to be understanding with your tenants. No one wants to move in the winter and it may be difficult to find a vacant rental for the tenant to move to. The spring is also a good time to buy multi-family properties because the “good ones” are just coming on the market. If you start early in the year you will have a good inventory of fresh properties and will have many to choose from. As an investor, or non-owner occupied multi-family buyer, you will want to look at properties towards the end of the selling season to get the best deals. A good investor, however, should be looking for multi-family properties all year long. Good deals do not last on the market for long. For multi-family properties your prime concern should be cash flow. Does the property financially sustain itself? When you are purchasing multi-family properties as investments you should really seek the assistance of a Realtor with investment experience. There are many factors that make a property a “good deal” and others that make a property a potential money pit. A Realtor with investment experience should be able to help you avoid the obvious traps in investing.
Commercial Properties and Land – As with other types of property, the winter is the best time to buy commercial properties and land. You will not necessarily find better prices but you will more likely find motivated sellers. However, these types of properties can be purchased for about the same price year round.
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