After Labor Day, we end our summer fun and look forward to Fall highlights – leaves changing colors, weather beginning to cool, football, Thanksgiving, etc. However, the fall season also brings adjustments to the real estate market as well for the astute investor. Here are a few of them to consider.
Buyer’s Market – Very often, fall represents an excellent time for buyers looking for a home because the competition is usually small. Reason being that with the start of the school year, any families looking to purchase and move into a new home will likely have already done so the previous spring and summer. Once fall hits and school begins, there is minimal leeway in trying to keep kids in school and house hunt, much less go through the process of closing.
However, for investors that don’t have to contend with those worries, the fall season creates a solid buyer’s market – plenty of properties available with reduced competition to battle for them, preventing price hikes too as a result. Plus the market itself is somewhat slower versus other seasons throughout the year. If you’re looking to buy at good prices, block out at least the last few months of the year and hold on.
Time for Vacation Home Buying – Another reason to hold off until fall is that timing-wise it’s the best point in the year to begin searching for a new vacation home. Summertime is usually the best season for taking vacations away from home. If you happen to find a spot that you particularly enjoy and have enough funds available, then using the fall as a property hunt season to find and purchase something for the following summer makes sense. Moreover, you will have enough time to close and furnish it properly by at least spring, making it perfect and ready for summer enjoyment.
On the other hand, if you aren’t interested in staying in a vacation home but having someone rent one from you then fall is still a great period to property hunt. Again for the very same reasons of buying it for yourself, purchasing a home in the desired vacation destination will provide you a continuous rental income source that can begin paying off immediately, especially if you find and buy property in a popular winter destination. Summer and winter seasons have their key destinations to enjoy them in; nothing is holding you back from trying to have rentals available for each vacation season.
Home Prices Often Fall – Another great reason to hold off to start searching the real estate market and buying until fall is to wait out the bulk of sellers who believed that their homes would be snatched up during summer and were not. Many people are successful in getting their homes sold during those months. But if, by Labor Day, their homes don’t sell then many sellers will back down on their initial prices. For the savvy investor, this leaves available openings for negotiation.
Fall is a period where the year starts to wrap itself up; for the real estate investor, though, it can be a time when the real estate market and opportunity heat up. Is your business sufficiently structured and protected in case something unforeseen happens and you face a liability issue? Are you sure?
Remember that there are plenty of people out there looking for investors like yourselves to go after monetarily any way they can. Anderson’s team though can look over your corporate entities and see how strong they are from people coming after your assets. Again ask yourself how secure your entities are – if you’re not 100 percent sure then schedule a 30-minute free strategy session with us today.