As you proceed with your holiday shopping, one item you may not yet have on your list is a new Detroit investment property. For most people, the holiday season is a time to focus on festive activities and spending time with loved ones. However, studies have shown that if you want to purchase a rental property, the winter months might be the best time of the year to do it.
If you are like many rental property investors, you are busy looking for an excellent real estate opportunity. As you are ready to purchase, you may prefer to time your acquisitions at year’s end to find the best possible prices. According to a new analysis from Attom Data Solutions, you are more likely to find properties at a discount during the last month of the year. In their report, Attom analyzed over 23 million single-family home and condo sales in a 6-year period. As they calculated the dates when homes sold for a discount, three days in December appeared: the 4th, 26th, and 31st.
It’s an obvious pattern and a peculiar trend, to be certain. The data tends to demonstrate that closing on a property in the days adjacent to major holidays may lead to decreased prices. But why? Industry experts theorize that a number of conditions may contribute to the lower sales prices in December. For instance, sellers may be more motivated to sell if they are trying to move close to the holidays. Few individuals enjoy their entire lives being thrown into chaos by a move just before Christmas. This in itself is a huge motivation to complete the sale as rapidly as feasible. Therefore, the sellers may be willing to sell at a discount to avoid an ill-timed move.
Another significant factor probably leading to lower home prices during the holidays is less competition with other buyers. Like sellers, homebuyers may avoid shopping for a new residence in December. There are numerous reasons for this, such as a hesitation to move children out of a current school district and the sheer logistical difficulty of moving house in cold temperatures, ice, and snow. As competition for single-family homes declines, investors may be able to more successfully negotiate a lower purchase price from sellers reluctant to wait until the market picks back up in the spring. This is especially true if your offer is the only one the seller gets. With only your offer in hand, they may be much more accommodating and may accept terms in an offer that maybe wouldn’t be appropriate at other times of the year.
Ultimately, it’s necessary not to overlook the effect of the holiday season on the negotiation process. For numerous individuals, the holidays bring a sense of goodwill and anticipation. These positive vibes may have a significant effect on your negotiations, as sellers may feel more generous and eager to make a fresh start in the new year to come. When paired with the other elements, it’s clear that the holiday season itself may create some of the best conditions in which to buy your next investment property.
Are you willing to extend another rental property to your investment portfolio this holiday season? Real Property Management Main can assist! Our professional Detroit property managers help investors with a wide range of services, from connecting investors with off-market sellers to getting your rental property ready to rent as soon as possible. Do you want to know more? Give us a call at 248-852-6204 or contact us online today!
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