Holiday Opportunity in Real Estate
If you are thinking of taking the Holidays off, think again. This is the best time of the year for Realtors to get great deals for their buyers and the best time for investors to pick up houses at bargain prices. It is true that there is typically less inventory but there is also more opportunity in the homes that are available this time of the year.
Sellers are Motivated
If a seller has their home listed during the holidays it means that they probably need to sell. Most people are busy entertaining friends and family during the holidays and do not have time to have showings at their house. This means that the houses that are listed are motivated since they are not as concerned about being inconvenienced as others who took their houses off the market during this time. Some homeowners are also selling this time of the year for 2013 tax purposes. This means that sellers will be more likely to give concessions and be flexible with their pricing even if an offer was a little less than what they were expecting.
Less Competition
There are just not as many buyers looking during the holidays. This means there will be less multiple offer scenarios and bidding wars will be a rarity. Historically during the winter, the real estate market typically slows down in northern climates with snow. No one likes moving with a foot of snow on the ground or moving when blizzards are being talked about all across the country. Usually the competition doesn’t pick back up to full force until after the Superbowl.
Quick Loan Approvals
Lending institutions slow down during Christmas as well so this means loan officers will have more time to work on specific loans, thus faster approvals. Some lending institutions will even reduce certain fees to attract business during the holidays.
Better Affordability
Home prices have been increasing over the last year but historically December is the lowest priced month out of the year. This means that the buyer will be able to get a better discount then other times of the year and possibly even be able to get a better house for their money or into the neighborhood with the school district they want.
Bank owned properties can sometimes be picked up at a greater discount as well. Many times the banks will get penalized by the government if they have a certain percentage of REO properties on their books. This means that they are looking to liquidate as many of their properties as possible to hit the percentages they need at the end of the year. The stock holders also look at reports of inventory at the end of the year so the bank will be more flexible on their prices.
In Conclusion
You can take holidays off like everyone else in the real estate industry or you can take the reindeer by the horns and make December your best month yet. The choice is yours!
“Do you want to know who you are? Don’t ask. Act! Action will delineate and define you.”
-Thomas Jefferson
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