A property that’s in demand today probably won’t be in demand down the road. If you’re selling your South Florida property, understand that one of the factors that affect whether or not it will actually sell is seasonality.
In a nutshell, seasonality refers to the timing of selling or purchasing a house. Since the real estate market fluctuates, it’s critical to determine when the ideal season to sell or purchase a property is.
In this article, we’ll go over the basics of seasonality, as well as how it affects real estate values. Whether you’re selling or purchasing a property, keep these tips in mind so you can make the right decision and the right time.
Factors That Affect Real Estate
How much you can sell your house for depends on certain factors including its location. Location is the top factor that homeowners are familiar with since, chances are, it’s why they purchased the property in the first place. A house in a good neighborhood obviously sells higher because people want to live in a convenient location that’s complete with all the amenities they could ever want or need.
Another factor is aesthetics. Properties that are well-maintained attract people, which is why homeowners spend a substantial amount of time (and money) boosting their property’s curb appeal.
Besides these two, homeowners should also be aware that the season can determine whether or not they can sell the house, and if so, how much they can sell it for.
The Effect of Seasonality on Real Estate
Seasonality isn’t the same across all locations. For instance, in cold cities, sales are usually slower in the winter as people want to avoid moving in the wintry weather. On the other hand, warmer areas such as Palm Beach County and Orange County see significantly higher sales during the wintertime with people relocating or investing in a vacation home. Since seasonality is very varied, make sure you understand your real estate market. With that said, it would be worthwhile to consult a real estate investment adviser.
While the weather does affect seasonality, it isn’t the only factor that contributes to the “fluctuations” of the real estate world. If you’re selling your property, you need to consider these factors, too:
#1 School Year
The school year is another factor that influences real estate seasonality. Homebuyers with children are aware that relocating in the middle of the school year can be incredibly challenging. This is because their children won’t be able to start at their new school at the proper time. This can add to the stress of relocating, which they’d rather not deal with. This is why property management companies don’t recommend selling a house during the school year.
#2 Holiday Season
Who wants to move during the holidays? Homeowners would rather do holiday errands and go to events than plan their long-distance move during Christmastime. The holidays are busy as they are, and homebuyers don’t want to add to their trouble by figuring out the logistics of relocating. Besides, the weather conditions during this time don’t sound appealing at all.
What Seasonality Means for Buyers
During busy seasons, there’s a higher demand for housing. In other words, a lot of houses will be available, driving up property prices. Sellers won’t be worried about not finding a buyer because they’ll be getting a lot of offers. Hence, you probably won’t be able to negotiate a better deal at this time.
That’s why the best time to buy a house would be in slow seasons such as the winter. For starters, property prices are lower at this time, allowing you to save around seven percent compared to purchasing a property in the summer. Since competition is low, sellers that are desperate to sell will end up lowering their prices. They’ll also be more open to negotiating a better deal.
The downside, however, is that buying during the slow season means you won’t have that many options. While you’ll be able to see how the house holds up in wintry weather, you won’t be able to check if the outdoors needs work.
What Seasonality Means for Sellers
As a rule of thumb, you should sell your house when other people are selling theirs, too. When the demand is high, your property’s price is also high. In addition, you will get plenty of offers so you won’t end up settling for less.
However, it’s not always ideal to wait for others to start selling. If you’re counting on the proceeds of the sale to buy a house to relocate to, that puts you in the position of a seller and buyer. You won’t be able to buy a new house at a lower rate because other sellers are taking advantage of the “peak” season, too.
If you can postpone your move, sell your property while the demand is high, and wait for winter to buy your new property. Again, it has its drawbacks, but it’s one way to make the most out of your sale.
Proper Pricing for Sellers
Sellers shouldn’t price their properties any amount they want. Keep in mind that your potential buyers will still be looking for the best of the best deal, in other words, they’ll likely choose the cheaper property. With that said, make sure your property is priced properly. Enlist the services of a property management company to compare home prices in your area.
Understanding the effects of seasonality can help buyers find the best real estate deals, and sellers sell their houses at a profit. If seasonality sounds too confusing for you, don’t fret. A skilled property manager can guide you through your real estate market so you can use it to your advantage.
If you’re from the South Florida area, get in touch with Luxury Property Care today. We’ll take care of everything, from finding real estate deals to checking the market, so that you don’t have to. Contact us at (561) 944 – 2992 or complete our contact form for more information.