How does weather affect resale value?

4 Replies

With the fact that the weather has been so ridiculously nice (relatively) here in Minnesota recently, it has given us a false sense of normalcy when it comes to wanting to buy and sell some rehabbed properties.

Question for those with experience selling n the winter months of the northern states.

How do you find the weather impacting your ability to sell a property? Especially when it is freezing and snowing outside.

Thoughts?!

Here are my observations: in mn, once school starts, people don't want to move. Usually there is a wave of buyers in October and things get really quite once snow hits the ground, till spring is in the air. But then again, I have sold places in the  dead of winter. Thank you, Dan

As Dan mentioned, inventory and demand both seem to drop in the winter months.  Prices come down a bit, it takes longer to sell homes and harder to find them.  I have also sold houses in the winter but would prefer to avoid it if possible.  I rushed a house that is closing tomorrow because I didn't want it sitting on the market.  May have lost a couple grand negotiating but I could lose that quickly if the house sits for a few months.

Nice, thanks for your thoughts and experiences

@Daniel Sattler I agree with @John Woodrich and @Dan Bryskin . I rehabbed properties full-time in the Twin Cities from 2011 until 2014 (I've worked full-time doing client work as a general contractor ever since), and the slowest times for re-sale were always early November through mid-February. That being said, anything will sell, if priced correctly - especially entry-level homes (first time buyers without kids, etc, as they aren't tied down by the school calendar). 

We took two approaches with properties that would hit the market in the "dead" months noted above. 

(1) Buy at a slightly lower than normal price, so we could list very aggressively for a quick sale (while hitting the same margins)

(2) Factor in the additional holding costs it would take to get into the spring market. My experience has been that "early bird" buyers start looking again in mid-February to get a jump on the rest of the market.

Best of luck with your investing!

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