As a real estate investor, capitalizing on spring and warmer months is key. When looking into real estate deals, understanding when “spring” and the market peaks in your area is crucial, Being prepared to act on a good deal quickly, and being flexible in your search are also helpful tips to maximize the market potential when looking to buy. For investors looking to sell, capitalizing on homebuyers looking to move in spring and summer is vital.
The spring housing market is prime time for real estate investors to capitalize on a surge in demand that typically happens in markets across the country as the weather warms up. Whether you’re an investor looking to buy new properties or sell your existing holdings, entering the competitive spring market prepared with a strategy will help you leverage market dynamics to your advantage.
Know What Defines “Spring” In Your Region
Generally speaking, the spring housing market in the U.S. runs from late March through the end of June. More temperate climates, however, may see activity start a bit earlier. It’s important to be familiar with market patterns and current conditions so you’re ready for your area’s most active months.
More Inventory, More Competition
Spring is one of the busiest times of the year in many real estate markets as buyers start searching for homes, and sellers take advantage of their blooming landscapes to showcase their properties. With an increased number of open houses and new listings hitting the market daily, buyers have more to choose from. Increased inventory combined with a larger pool of interested buyers can lead to more competition for prime properties. If interest and inflation rates begin to soften, competition will likely become even more intense.
Tips For Spring Buyers
Be the Early Bird
Research your market to understand its current trends. Know the pros and cons of each neighborhood and what the community has to offer — including municipal services, amenities, school districts, shopping, commuting, and culture. Research home values in the area, keep tabs on new listings, and attend open houses early. The legwork you do at the start of your property search will prepare you to act quickly when the right one comes on the market.
Be Ready to Act
Although inventory is increasing, demand for housing still outpaces supply. It’s wise to be ready to act quickly, but prudently, when an opportunity arises. When markets heat up, there’s rarely time to “sleep on it” once you’ve seen a property you like. You may need to make an offer the same day. Use technology, such as live video tours, e-signing apps, and virtual conference software, to your advantage.
In addition, make sure you:
- Spring clean your finances. Get your finances in order by reviewing your credit report and fixing any errors. Pay down as much debt as you can. Collect important financial documents, and review your budget so you’ll know where you have leeway and where you don’t.
- Work with a real estate agent you trust. An experienced real estate professional is a valuable ally, particularly if they have in-depth knowledge of your desired area. Well-connected agents can alert you to off-market properties, navigate you through a bidding war, help you submit a winning offer, and negotiate counteroffers and concessions. Working with a Realtor can be expensive, but if you buy and sell properties frequently, you may be able to negotiate a reduced commission rate as a repeat customer.
Learn more: Finding and Keeping an Investor-Friendly Real Estate Agent
- Secure your financing. Have your loan or financing options in order before starting your property search so you’re working with a realistic investment budget and can shop accordingly. A mortgage pre approval or verified approval letter may show sellers you’re a serious buyer.
Offer Cash
A cash offer can significantly improve your chances of making the winning bid in a hot market. Many sellers prefer a straightforward cash deal than one that comes with contingencies on the part of the buyer. Sellers may even be willing to negotiate the price when a cash offer is on the table.
Be Flexible, Consider Alternatives
You may want to expand your search beyond single-family homes and consider duplexes, triplexes, other multifamily properties, or even commercial sites if they are a match for your investment style and portfolio.
You might also consider looking for inventory through non-traditional avenues, such as auctions, short sales, and wholesalers. In addition, you could approach homeowners directly about buying their property.
If you’re not finding what you want in your market, expand your horizons and investigate more of the surrounding area, including suburbs or rural towns. Adjust your criteria accordingly, stay flexible, and keep an open mind.
Tips for Spring Sellers
Price Correctly
If you price your property too high, it may linger on the market. If you price it too low, you may inspire a bidding war among eager spring buyers, but you could end up leaving money on the table. Work with your agent and ask for a comparative market analysis. A CMA will analyze recently sold properties in your area that are similar to your home, which you can use to price your property correctly.
Spring Clean And Prep Your Property
First impressions matter, and most buyers are drawn to properties that require little in the way of elbow grease, renovation, or repairs — especially when their funds are earmarked for closing and moving costs. Make any needed home repairs before listing, and hire professional painters and cleaners to get your property looking its best. Upgrade simple amenities, fixtures, and lighting. Spruce up the landscaping and general curb appeal for an optimal first impression. Professional staging may be a worthwhile investment to showcase your property in its best condition.
Learn more: So You Want to Sell Your Rental Property – Here’s How
Use A Seasonal Marketing Strategy
Use the sunny days, lush lawns, and pretty blooms to your advantage when it comes to creating your marketing materials. The professional photos, virtual tours, and targeted online ads you create should feature pleasing visual cues, such as open windows, blue skies, cut flower arrangements, and images of outdoor living to appeal to a buyer’s positive perception of your property.
Be Prepared For Multiple Offers
It’s not uncommon in a competitive spring market for sellers to find themselves with multiple offers. Review each offer carefully with your team and consider factors other than price, such as concessions, contingencies, and closing timeline before choosing the winning bidder.
Prepping for the spring real estate market as an investor, whether you’re buying or selling, requires some planning, flexibility, and patience, along with a clear vision of your desired outcome. Assemble a team you trust, keep a close watch on the market, and be ready to act when opportunity knocks.
