For years, I've been telling potential home buyers and real estate investors that November and December is absolutely the best time of year to be buying properties.
There are actually 3 reasons why the end of the year is such a great time to buy:
(1) There is less competition. Fewer people buy homes during November and December because they are thinking more about the holidays. With Thanksgiving, Christmas, New Years, and other religious holidays upon us many would be buyers are thinking more about shopping, traveling, holiday parties, school plays, and religious events than they are about buying a home.
(2) Sellers are often more motivated to sell. If a seller is willing to allow buyers, Realtors, and other people to traipse through their home during the holidays, they are often much more motivated than a typical seller during other times of the year.
(3) Tax incentives are often a motivating factor. Banks, asset managers, and even real estate investors, are motivated to get a property off their books before a tax year ends. Few banks want to let a non-performing asset sit on their books for yet another tax year. Same with motivated real estate investors. Sometimes bank owned REO and short sales will magically get approved even at a lowball price just to get them off the books and closed before the year ends.
If you pull out the Realtor stats from previous years, you will notice a pattern. Closed deals in December and January are almost always the lowest point for the year. (January sales were ones that went under contract 30 days earlier - December.) Some of the best deals I have purchased were done in November and December. In 2007 I bought an Orlando REO that was listed for $150,000 but the bank sold it to me in December for $97,000. Right now I am negotiating a contract to buy another property for $45,000 that should appraise for close to $100,000 - seller wants to go back up north and be there for the holidays.
Make sure to get your offer in ASAP. The end of the year is coming up on us fast. Central Florida properties are selling.
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