There’s an old adage which states that in real estate, the most important factors are location, location, and location. You’ve probably even heard it mentioned in movies and TV shows as the guiding principle for all real estate agents.
Here’s the thing: While location certainly matters a lot if you’re looking to get a great deal on some property, it’s not the only thing you need to take note of.
If you want to get the most out of your real estate investments, you also have to pay attention to when you complete certain transactions. A sale could be more profitable during a certain time of the year and you can also end up saving more on a new property if you wait for a specific time before buying.
In this article, we will highlight best times for you to buy and sell real estate properties.
The Best Times to Buy
Homes are more expensive now than they used to be. You could save up for a long time and still come up well short of the asking price for your dream home.
However, there are certain times throughout the year when property prices are just a bit more favorable. You will probably still have to make a significant investment to get your dream home, but the deal could be more palatable if you time it right.
Christmas Season Is Friendly to Buyers
The Christmas season is typically one of the busiest times of the year because many of us are shopping for gifts and making plans to meet up with friends and family. Look inside any retail store and you’ll likely see long lines of people getting their shopping in.
Not everyone is busy during that time of the year though.
As The Balance points out, the housing market is typically not very busy during the holiday season. House prices usually drop to their lowest point in the year sometime in December and there aren’t a lot of buyers out there scouting homes when it’s snowy.
You can take advantage of that by approaching sellers and making offers. If the seller is eager to get the transaction completed before Christmas day, you may get a terrific deal on your new home. Of course, you also have to be willing to put the work in to complete a deal by Christmas, but the savings should motivate you to do that.
The Months Immediately Following the Holidays Are Also Buyer-Friendly
Let’s say that the Christmas season is also not a good time for you to get any big deals because you are simply too busy doing everything else, does that mean you will have to clear your schedule for the next holiday season? Well, not necessarily.
Even if you can’t buy a new home right before Christmas, don’t stop scouting the market. As noted by The Street, people who are motivated to move their properties during the holiday season are likely doing so because they absolutely have to sell their home as soon as possible. That means their homes will probably still be on the market even after the fireworks have gone off on New Year’s Day. (Related: Are Newly Constructed Homes Better Than Old Homes)
Statistics indicate that house prices can drop by as much as 8.4 percent within the first two months of the year compared to where they typically reside during the summer. Yes, it’s probably still too cold out to feel comfortable driving everywhere, but if you’re willing to do that, you could land a great deal on a new home.
Local Conditions Should Dictate When You Buy
You don’t always have to wait until the weather turns cold to get a good deal on your new home. Sometimes, forces in the market just work in such a way that they create a buyer-friendly environment.
CNBC suggests working closely with real estate agents in a particular area to find out the current state of the housing market there. If the balance is currently tilted more towards supply than demand, then know that there are some great deals to be had.
Take note that the market can change quickly if a home or two is sold before you can complete a deal. If you work quickly enough though, you should be able to snag a fantastic deal yourself.
The Best Times to Sell
Just as there are great times to put money down for some new property, there are also specific points in the year when you can rake in bigger bucks from completing a sale.
Read on to find out exactly when you can put your home up for sale and expect some good offers to roll in.
The Month of May Is Prime Selling Season
May is usually that time of the year when the weather becomes more consistently pleasant and staying outdoors becomes a better idea. If you’re looking to make some big money, the month of May should also be important to you because it’s a good month to move some property.
According to statistics provided by ATTOM Data Solutions that are highlighted in this Forbes article, May has consistently been the best month to sell a home from 2011 to 2017. You have a better chance to secure a good return on your real estate investment if you decide to sell at some point during the month of May.
Apparently, the reason why May ranks as the best month for selling homes is because you can stay ahead of the market that way. Many sellers wait until around June or July to start putting their properties up for sale. That makes sense because more people are willing to go home shopping when the weather is more agreeable.
The advantage to selling your home in May is that you have fewer sellers to compete with. If you encounter enough potential buyers that are motivated to get a deal done right away, a bidding war could ensue for your property and you can just sit back and watch it unfold.
Get Your Home Listed on a Thursday to Secure the Best Offers
So, if May is the best month to sell your home, is there a best day for selling as well? Well, yes, there actually is, and that day is none other than Thursday.
According to RedFin’s analysis of more than two million home sales conducted last year, homes that were listed on Thursday sold for an average of $3,015 more than houses that were listed on a Monday. On top of that, homes listed on a Thursday were also seen as the ones that sold the fastest. (Related: Fall is the Perfect Time for Home Repairs and Maintenance)
The reasoning behind why Thursday stands out as a great day for getting your home listed makes a lot of sense too. Since most prospective buyers go on their tours during the weekend, the homes that get listed on a Thursday tend to stand out more.
Homes listed on a Friday don’t get that same advantage because some are posted too late for people to see them. The homes that were listed prior to Thursday don’t possess a good chance of remaining on buyers’ minds because newer options could supplant them.
Now, if you can manage to get your home listed on a Thursday right around the month of May, you are really setting yourself up for success.
Location may still be the factor that matters most when it comes to determining the value of real estate, but timing cannot be ignored as well. Whether you’re someone looking to purchase a dream home to move your family into or someone looking to sell a home to get the money needed for their dream home, timing your transactions right can prove incredibly helpful.