Top Tips for Rehab Property in the Fall

It’s no secret that the housing market is cyclical. Spring and summer tend to be the hottest selling seasons, and things tend to slow down in the fall and winter. But rehabbing homes isn’t a seasonal job. If you’re serious about rehabbing houses in the fall, there’s no reason why the calendar needs to slow you down or eat into your profits. You just need to keep a few important tips in mind as you plan your flips.

1. Plan to buy -- not sell -- in the fall, if possible.

August is usually not the best time to invest in a rehab property, because once your flip is done, the market is likely to have slumped a bit. Your returns simply won’t be as high as they would be if you bought in May and sold in June, for example. If you do find yourself ready to list and facing a soft market in the fall, it might make sense to rent the house for a few months until the market picks back up. Or it might make sense to take the hit – hopefully it’s a minor one – and immediately reinvest in a new property. After all, the cycle works both ways. Fall may not be a great season for selling, but it can be a wonderful time to buy.

2. Consider the demographics of your potential buyers.

According to Zillow, 44% of potential home buyers have school-aged children, and families are the least likely to move after the school year has started. That leaves more than half the market to focus on in the fall. Consider rehab properties in neighborhoods favored by older demographics or by young, single professionals. Keep in mind that while there are fewer buyers in fall, the people who are looking usually want to act fast so they can get settled before the holidays.

3. Stage for the season.

Autumn means lower light, colder weather, and more leaves. Plan accordingly, and make your rehabbed home feel like the perfect place to get cozy. When showing a house, turn on all the lights to help make up for longer shadows and gloomy weather. Bring in extra lighting if you need to in order to make the home feel bright and welcoming.

You should also turn on the heat if it’s chilly out, and consider replacing the HVAC filter so that the air smells clean, not dusty or moldy. Use autumnal colors where you can, perhaps hanging a wreath of fall leaves on the door or putting a vase of mums on the kitchen table. As for the yard, make sure you curb appeal is top notch by keeping leaves swept up and walkways clear of dirt, water, or ice.

4. Stay ahead of the competition.

With fewer homes on the market to choose from, the level of competition between rehabbers can be just as high in the fall as any other season. Stay on top of all of your marketing strategies – direct mailers, networking, and/or a catchy website – in order to scout hot properties before anyone else. You should also line up any house flipping loans you might need in advance so that you can move quickly when the right property comes along.