Examine the habits of successful property investors like Warren Buffet and you’ll find one common denominator: They understand how to effectively research property listings.
Savvy investors realize all financial endeavors operate in cycles. In that sense, real estate is no different than the stock market. Buy low, sell high, right?
That may seem a bit obvious, but here’s where keen investors take the advantage. They know the seasonality of their market. And they forecast how seasonality affects property listings.
Do you want to establish a better equity position in your rental home?
Taking the time to research seasonal trends can save you 5%-10% at closing.
Pay attention to these key factors when doing your research.
The busiest season for moving is summer. This makes sense. Kids are out of school and it’s easier to take time off work. And usually, the weather cooperates.
In 2016 the busiest moving day was June 30. The first of August and the first of June take second and third place, respectively.
It is estimated that 80% of all moves in the United States are done between April and September.
Why pay attention to moving trends?
A high percentage of people who move are also people who are buying and selling. More activity traditionally drives up price.
When searching property listings, wise property investors ignore summer, for the most part.
Exceptions to Every Rule
While there are some national trends regarding why people move, investigate your specific market to get a clearer picture.
For example, if you are looking for investment properties, are they near a large college? Or an area popular for seasonal, summer jobs?
The statistics on moves in that area may be a little skewed.
In fact, home owners and property investors may be more motivated to sell during this time, in order to complete the closing before students start arriving again.
Pay closer attention to homes within walking and biking distance of a major college.
Property Listings During the Holidays
The slowest time of year for the real estate market is around the holidays.
Who wants to plan a move during Christmas, or when the weather is less favorable?
For the property investor, this should smell heavily of opportunity. Houses for sale during the holiday season will follow the basic rules of supply and demand — “the lower the demand, the lower the price tends to fall.”
Between 2015 and 2016 there was a marked increase in moves made to homes with more bedrooms. Houses with 2, 3, and 4 bedrooms grew in popularity while 1-bedrooms decreased by 14%.
Something to keep in mind while perusing property listings in your area.
Discover how much an investment property can earn in monthly income.
It’s worth doing some homework.
Although it’s necessary to investigate the location, price, school districts, the amount of property taxes, don’t ignore the importance of seasons.
Owning a rental property involves hands-on management. If you prefer to avoid the hassle of dealing with tenants, choose a company with a successful track record in property management.
When things go wrong — Spring, Summer, Fall, and, yes, even Winter — Clockwork Property Management will be there.