The Impact of Seasons: 13 Things to Consider When Buying or Selling

There are a lot of factors that can impact real estate trends, including the time of year. The market’s ebbs and flows are often dictated by the seasons: For instance, summer months might be busier than winter, while the winter holidays can lead to a slump in sales, or the inverse, depending on the type of property or region.

1. Be Prepared For Changing Seasonal Property Perceptions

External factors like weather, foliage and light can greatly impact the perception of a property. Be aware of how these may vary each season. A property with stunning views may be diminished once leaves are on the trees. Likewise, what appears to be sunny and bright may drastically change if under a tree canopy that's currently bare. Beach homes may see a very different traffic pattern in season.

2. Use The Changing Season As A Built-In Conversation Starter

Changing seasons or calendar events give you a great opportunity to connect with clients. At the end of the year, agents can talk about tax deductions, while spring or summer can be a great time to talk about moving before the new school year starts. Either way, a new season gives you an excuse to speak with a client!

3. Check In With Contacts During Seasonal Staffing Changes

As seasons change, staffing changes. People move. You should use this time to catch up and make sure your contacts are placed as you remember. While you are at it, update yourself on industry trends you wish to share. Listen for clues where you can provide service, such as expansions, contractions or consolidations. For investments, check for external changes as they affect each type of investment.

4. Acquire And Upgrade Multifamily Properties During The Winter To Spring Transition

We routinely acquire multifamily properties in the November through January window when few other buyers are active, resulting in lower purchase prices. Then, during January through March, we conduct value-add improvements. As spring starts, the properties are listed for rent when tenants start looking to move, securing high-quality tenants into our newly renovated units.

5. Invest During The Fall To Capitalize On Seasonal Price Cuts

Real estate prices fluctuate depending on the time of the year. Nationwide, end of summer and beginning of fall is the best time to invest. In Manhattan, highest price cuts are to be found in September and October. Also, as common knowledge teaches us, winter is always a buyer market. Based on seasonal data, and working with the seller or buyer side, we can always structure a deal.

6. Off-Season Differs Regionally

Seasons definitely create troughs and sprints of activity in the real estate market. Off-seasons, especially in cold-weather states, often mean less competition and more negotiability. When new surges kick in, like the peak spring-summer buyers’ market, it can be an attractive time to sell and let competing buyers bid up prices. However, some markets like Florida have reverse seasons.

7. Take Opportunity To Provide Feedback

Changing seasons can create opportunities as they can provide important market feedback. For example, if a client is selling a home and it does not sell during the peak summer season and fall is rapidly approaching, it sends a clear message that the seller should consider a price reduction or potentially be prepared to wait until spring to attract a buyer at their desired price.

8. Know That Commercial And Residential Markets Have Opposite Seasons

Commercial real estate seasons and residential (home sales) seasons are incongruent. Home sales pick up in the spring and agents talk about the flowering landscape, improved curb appeal, staging the pool and porch. In commercial, our seasons are the end of the year: Get those sales closed before tax laws change and in the first quarter when tenants or buyers set budgets and think about space.

9. Tailor Your Approach To Your Buyer's Needs

Tailor your approach based on the needs of the buyer and why they're looking in a specific location. In markets like Manhattan, you’re not impacted by the season as much as you are in the Hamptons or other primary summer destinations. It’s important to make sure brokerages have sufficient in-season marketing material so they can showcase homes that highlight its value through all four seasons.

10. Celebrate Changes In Season

As much as your city enjoys its four seasons, we all look forward to when they change. Celebrate that transition with clients by connecting with local businesses who bring that message home. For example, enjoy maple sugar in March or share a recipe for a local delicacy in April. This can make your agency stand out, add a local and educational component, as well as build a stronger rapport.

11. Financially Prepare For Seasonal Downturns

Being prepared ahead of time for changes in market conditions is important for prudent investors. Utilizing moderate leverage is the best way for an investor to protect themselves if a downturn occurs, enabling them to refinance or divest of the asset without incurring a loss. In addition, high cash reserves allow investors to swoop in for discounted properties while others are running away.

12. There's Never A Wrong Time To Buy, Only Sell

Our brains are so fascinating. Most buyers wait until the market is appreciating to know it's "OK" to buy and then wait again when the market is turning down, as they don't want to buy a depreciating asset! The truth is there's no wrong time to buy, only a wrong time to sell. Look outside your own market for opportunities as the market shifts and wait patiently for the next cycle to time the sale.

13. Focus On The Positives

There are benefits and downfalls to each season, so it is important to focus on the positive aspects of the current or upcoming season to build confidence with your clients. There will always be ebb and flow to the inventory available and buyers available. If it is winter, highlight there will be less competition on the market for your seller, but if it is summer, focus on the high demand.

There are pros and cons to buying or selling in any market, contact us today to have us help put together a plan that works for you.