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You Should Be Shopping for a Rental Investment this Season

A “For Sale” Sign in Front of a Snowy PropertyAs you start your holiday shopping, one item you may not yet have on your list is a new Locust Valley investment property. For some people, the holiday season is an opportunity to focus on festive activities and spending time with loved ones. Yet, studies have shown that if you want to get a rental property, the winter months might be the best time of the year to do that.

If you’re similar to many other rental property investors, you are consistently searching for an incredible real estate deal. As you get ready to buy, you may want 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 emerged: the 4th, 26th, and 31st.

To be certain, It’s an obvious pattern and a weird trend. The data seems to illustrate that closing on a property in the days adjacent to major holidays may bring about lower prices. But why? Industry experts theorize that a number of conditions may contribute to the lower sales prices in December. As an illustration, sellers may be more motivated to sell if they are trying to move close to the holidays. No one enjoys their entire lives being thrown into chaos by a move just before Christmas. This in itself is a strong motivation to execute the sale as soon as possible. That’s why the sellers may be willing to sell at a discount to avoid an ill-timed move.

Another big factor likely 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 a couple of reasons for this, including lack of willingness 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 disinclined to wait until the market picks back up in the spring. This is certainly relevant 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 fitting at other times of the year.

Lastly, it’s vital not to overlook the effect of the holiday season on the negotiation process. For some individuals, the holidays bring a sense of goodwill and anticipation. These positive vibes may have a measurable effect on your negotiations, as sellers may feel more generous and eager to make a fresh start in the new year to come. When joined 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 expand another rental property to your investment portfolio this holiday season? Real Property Management Unlimited can assist you! Our professional Locust Valley 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 quickly as possible. Would you like to learn more? Give us a call at 516-443-3296 or contact us online today!

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