Buying Property Over the Holidays
‘Tis the season for sales, and now that Black Friday and Cyber Monday have passed, you might be thinking of other deals to be had during the holidays. It’s not common knowledge, but buying property over the holidays can actually be extraordinarily beneficial to you as an investor. Obviously, there are a few caveats and not every “deal” offered on real estate during this time is a good purchase, but there are a surprising number of factors that make real estate purchases over the holidays ideal for the investor with an eye for a bargain. Since most investors often overlook this, we’re going to talk this week about what to look for in properties and how to spot a good deal in what is generally a good season for deals of all kinds.
While you may not find an advertised “sale” on a property during the holidays like you do in a store, in recent years it’s become more common for sellers to mark down the price of properties towards the end of the year for reasons of either convenience or, unfortunately, fatigue after holding onto the property longer than expected (nothing quite drives that point home to a seller like the looming new year). You may also find, in addition to markdowns, discounted services that may aid you in a newly purchased property, as contractors are less busy but still need to earn money for the holidays. Both of these things can add up to significant savings and increase your profit on a real estate investment.
The approach of the end of the year can also benefit you as a buyer in another meaningful way in addition to encouraging the fatigued owner to sell, mostly because as the year draws to a close, so does the deadline for tax breaks. If you want an extra credit on your taxes, it’s much better to invest several thousand dollars in an asset that you can write off rather than hand it over to Uncle Sam, and the end of the year is a great time to do that because you’ll notice your savings (which can be substantial) in short order when it’s time to file taxes.
Think about what most people you know are concerned with around this time of year. Chances are, it includes gifts, travel, family, decorations, and shopping. You’ll also notice that buying property is probably absent from their list of things to do over the holidays, unless all of your friends and family happen to be real estate professionals. This distraction means that competition for sales is extremely low during this time of the year since most average homebuyers are completely immersed in other things, which means you have an advantage as an investor. Like we mentioned earlier, sellers are under more pressure to find buyers because, among many other reasons, the volume of buyers during this time is much lower. Combined with the fact that property-shopping just isn’t as much fun during cold weather, it creates a ripe market for you and if you’re a smart investor you’ll take advantage of the absence of other buyers to find yourself a holiday deal of your own.
Even though this is a topic for another day, we could write an entire book on how real estate is largely a seasonal endeavor; again, buyers of all stripes are less likely to visit properties when the weather is poor or they have other seasonal concerns on their minds. This is to your advantage because other real estate professionals, namely agents, still have bills to pay regardless of the state of the market and they’ll be more willing to work with you, just as a seller is, in conditions where buyer volume is low. They’ll be much more amenable to cutting deals with you and will hustle to close the sale quickly – if you work in real estate regularly, you’ll know that this kind of expediency only happens under certain conditions – and it translates into a greater amount of leverage that you can use to your advantage.
Finally, though the holidays can be a great time to purchase properties, all of the factors we mentioned that are to your advantage as a buyer can also contribute to the process of closing a deal being complete mayhem. True, holiday distraction may deter some buyers, and end-of-the-year fatigue may encourage some sellers, but both of those things also mean that agents, sellers, and contractors are also wrapped up in their own holiday plans and stressors. Remember, if you can’t close the sale by mid-December, expect it to take a little longer and possibly extend past the end of the year, so keep that in mind if you’re purchasing the property for tax reasons.
The time is right for holiday deals, so if you find one, give it some consideration! Don’t let your investment endeavors distract you too much from the holidays, and from all of us at Get It Right Solutions, enjoy the season!
– Get It Right Solutions.