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.
As a real estate professional, you need a firm grasp on how the changing seasons impact your local market. Here’s how the experts of Forbes Real Estate Council recommend taking advantage of the current time of year when handling clients and investments.
Members discuss ways the season can impact buying or selling real estate.Photos courtesy of the individual members.
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. – Thomas McCormack, Resources Real Estate
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! – Lisa Fettner, ReferralExchange
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. – Michael J. Polk, Polk Properties
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. – Yousif Abudra, BENA Capital
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. – Elliot Bogod, Broadway Realty
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. – Kent Clothier, Real Estate Worldwide
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. – Gary Beasley, Roofstock
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. – Kristin Geenty, The Geenty Group, Realtors
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. – Cody Vichinsky, Bespoke Real Estate
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. – Benjamin Pleat, Cobu (formerly known as Doorbell Communities)
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. – Adam Finkel, Tower Capital
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. – Courtney Poulos, ACME Real Estate
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. – Joshua Lybolt, Lifstyl Real Estate