Flipper/Rehabber · Easton, PA · Member since 2013 · 224 posts · 36 votes
Things are selling a little slower and for a little less these winter months, we just got offer accepted on a new home whose neighborhood showed great sales in the summer ( still decent now) but better in spring/summer. Is it worth it to wait a month or two? It was a cash purchase. Thanks
What is the general difference in resale values between now and a few months from now? How badly do you need the cash out? How much are you spending on holding costs?
For example, I do some rehabbing in Milwaukee, where values generally increase 3-6% between now and April -- that's a substantial price increase, especially on the $300K houses we're doing up there. It's worth the wait.
But, in Atlanta, values don't generally fluctuate between winter and spring (DOM fluctuates, certainly). So, in Atlanta, I'd put the house on the market ASAP.
Now, if you have high holding costs or need the cash out quickly, that should play in as well...
@Jessica H. If you're in an area where it's freezing cold outside, and much of the nation is, then it probably makes sense to put off selling until the weather changes a bit. People always start feeling more optimistic in Spring, and start thinking of moving wanting to be settled by the time school starts for the next year, so move in summer, etc.
What is the general difference in resale values between now and a few months from now? How badly do you need the cash out? How much are you spending on holding costs?
For example, I do some rehabbing in Milwaukee, where values generally increase 3-6% between now and April -- that's a substantial price increase, especially on the $300K houses we're doing up there. It's worth the wait.
But, in Atlanta, values don't generally fluctuate between winter and spring (DOM fluctuates, certainly). So, in Atlanta, I'd put the house on the market ASAP.
Now, if you have high holding costs or need the cash out quickly, that should play in as well...
Yeah, I'm in Atlanta and St. Louis and agree with J. Scott, market matters. I wouldn't ever hold one that was sellable, you're better off getting the money out and doing another one IMO, but I do get lazy on rehabs and don't sweat my guys moving slow this time of year.
By the time we close it will be mid february so I think putting it on the market in early May would be good. It is the same here as Milwaukee J Scott, selling in the warmer months would probably get us $15k-$20k more. Our holding costs are not bad so it is probably an ok idea to delay putting it on the market a month or so. Thanks.
My experience in our area is it has not made a detectable difference.
There are less buyers during the holidays, but there are also less houses on the market than during spring and summer.
We always list them as soon as they are ready, and our Nov Dec listings dont have a significantly different dom from the rest, and we dont project selling prices to be any different, and we are not taking any significant discounts to sell. Most sell very close to list price.
Just checked mls for our last four
Contract date
Knight Nov 18
Edith Ave Nov 26
Sail Dr. Dec 11
Ravenna Dec 16
We have two on the market that don't have contracts, maybe its because of the holidays, but more likely because of the busy street according to the feedback we are getting.
I think it really depends on the market and the house and can you afford to wait. Will the cost of waiting actually make you money or just zero out itself.
For me I cant afford to wait 2 -3 months just to list. Holding costs/hard money fees and loss of opportunity to move that money to another house is not worth it for me. And in the end I think extra fees compared to what I would gain by waiting till the summer/spring market would probably not make it much more profitable to wait.
I listed December and thought it was right before Christmas no one is looking and still got 2 offers within the first 2 weeks- so it was slower than normal by an extra week- It snowed the first weekend it was on the market. But I still got over list price. I think whenever you list there are always buyers looking- someone needs to move and if your house is great then you will find a buyer.
I am also a Realtor, and I hear home-owners say it all the time that they want to wait until spring. In their mind, they are usually thinking April or May. BUT, people start getting their income tax refunds as early as February, so I always tell people not to wait. Those refund checks are burning a hole in peoples pockets.
In my market, it is slower in the winter, but I don't think that values really go up and down. Anyway, go ahead and put it on the market in the winter. If you think that values are lower then, well you don't have to actually accept a lower offer if it's not what you want it to be.
I think holding costs is a big variable. For me I should have a house on the market in March in Milwaukee, but have about $600 in holding costs per month ($20 per day, that's scary!). So if I waited for 2 more months, I would at least have to recoup that $1200. If that is the difference for a $100k house then maybe I should just sell right away at a slightly lower cost and move on to the next one that much faster. A tricky decision, some of which will hinge on work that needs to be done to the exterior. It seems to me that local agents would be a great source of neighborhood specific info.
To echo Bryan L. I've been told by a few real estate agents in Milwaukee that spring season actually starts a lot earlier than most would think. After the Super Bowl is considered the milestone for the start of the spring buying season.
To concur with @Bryan L. I have been self employed since about 18 and always notice that everything sells like hotcakes during tax return season. I've sold everything under the sun to lower/middle income people.
This is my first tax season selling homes and have a few in those income type neighborhoods, that have been on the market for 60-90 days. My better judgement tells me to not do a price change. I dont have holding costs and I would agree on listing as soon as its market ready. Ideally I know how many DOM it takes to move a property in a area from comps, so mine as well get the clock ticking.
That tax money literally burns a hole in peoples pockets. I absolutely love tax season, that is considered my christmas rush almost!
I got a really good offer on my retail flip today. We are very close, but I expect this to go under contract (that's what we call it instead of "opening escrow"), probably tomorrow. And I have another appointment for it to be shown by another agent. And got an appointment for one of my other listings to be shown Saturday as well. There's no need to wait.
I never try to time the market. I try to get houses sold quickly and move on to the next ones. I never know what the market will do in the future and the longer you hold the better chance there is of something unexpected happening.