While there is never a bad time to buy an investment property, research has revealed that there are some months that may possibly be better for investors than others. If you are looking to purchase commercial property experts agree that you will have less competition and more motivated sellers in December and January.
While setting a goal to purchase commercial property in the winter is a good strategy to explore, there are pros and cons to limiting yourself to a few months. We will explore why the winter months are considered the best months to buy an investment property as well as a few things to weigh when deciding whether you will put in an offer on your next investment property.
Here’s why winter might be the best time of year to buy an investment property:
If you are hoping to avoid a bidding war on property in a popular location, you are likely to have less competition in the winter months. Everyone gets bogged down with preparing for year end and holidays which translates to less time to focus on other things. In addition, if you are located in a cold weather climate, snow/weather can dictate your ability to travel and review potential opportunities.
Even on Florida’s Space Coast, where we don’t experience the same frigid weather as other parts of the US, people don’t move into new homes or offices as often in the winter months. Fewer office transitions, housing moves, and warehouse rentals are likely to occur in December, January. Historically, Ullian Realty has found the Melbourne Palm Bay area typically slower from Thanksgiving to early January, during Easter/Spring break, and over the summer months when school is out.
The properties that are for sale in the winter months sometimes are those which owners are looking to sell quickly. Unlike an owner who has the luxury of waiting for the right seller to come along at a time when they prefer to move, property for sale in December, January, or February might have been on the market for several months and is staying on the market to all attract all potential buyers.
Property investors can benefit from engaging with motivated sellers because in most cases the owner will reduce their listing price the longer a building sits on the market.
Time to Make Improvements
Another reason the winter months are considered the best time to buy an investment property is because you will have time to make improvements when the market is slower.
Start Looking Now
Our recommendation is to start looking now, and when you find a property that meets your criteria, that is the best time to proceed. It can take significant time to find the right investment property, negotiate a contract that is acceptable, and conclude property inspections or financing. Even if your strategy for buying an investment property is to wait for the best time of the year to complete your purchase, it’s still a good idea to get started with your property search now. December will be here before we know it, and in the meantime, the market will have the most variety of properties to compare and purchase in the spring and summer. The biggest problem with limiting yourself only to purchasing property in the winter is that you risk missing out on some excellent properties.
Ullian Realty is an industry leader with over fifty years of combined experience specializing in office, industrial, commercial, retail, and investment real estate brokerage. Contact us today to learn more about how the Ullian Realty Process and to schedule your appointment to tour properties.