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Many of us have vague notions of the best time of year to buy or sell a home (two sides of the same coin). I’ve always heard that winter was a tough season to sell in, parents enjoy moving less when the kids are in school, and in the Northern reaches of our country, most people would prefer moving in a t-shirt and jeans as opposed to doing so in a snowstorm. My experience has seemed to confirm this, but is that only because I have been expecting it to?
RealtyTrac.com put forever to rest such questions, with a five-year study where they analyzed over 32 million sales to find when the largest discounts were given. Here’s what they found:
The very best day of the year to buy a house, according to over 32 million sales, is October 8th. RealtyTrac has several guesses as to why this is, and they undoubtedly beat any that I could venture.
This information is of huge importance to real estate investors. When it is hardest to sell a house , it is easiest for us to buy at a price or terms that make financial sense. Conversely, if we buy and rehab a house for re-sale, we should know if it is the best or very worst time of the year, and adjust our timelines and business models accordingly. If I have to make payments on an empty house while it sits on the market for six months rather than two, shouldn’t I ensure that my business plan and cash flow projections reflect additional holding costs?
Lou Gimbutis, owner of Property Solutions, LLC, www.SoldCarolina.com and www.123EscapeForeclosure.com, has been buying and selling houses full-time since 2004, first in Michigan, then after moving to NC in 2007. He serves as Director of Education for the Metrolina Real Estate Investor’s Association.
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