Should I hold my flip off the market until spring?

Question

I am closing on a short in about 2 weeks.  I expect the rehab to take about a month, putting me into the holidays.  In my market the buyers come out in droves when the first warm weekend arrives.  This is usually mid to late February.  Should I hold it off the market until then?  I am paying cash so I won't have much holding costs.

On the other hand, inventory is very low (2.77 months) especially in the price range and location of this property.  It will be in the lower 400's.  I risk some calamity with the economy, etc. if I hold off, but I expect to make an extra 15K or 20K (if the appraisal doesn't screw me up) if I wait.  What do you all think?

J Scott · Answer

List it, hope to sell it, and if you don't, pull the listing and get a new agent.  When you relist, the listing will no longer be stale.

I can't imagine any good reason to wait until Spring to list.

Mitch Kronowit · Answer

What's there to lose by placing it on the market when it's ready at a price that makes sense? You never know when that one buyer is going to cross your path. It'd be a shame to miss him just because you kept the property under wraps.

Justin S. · Answer

I would list it.  Speculating on a potential bidding war is not worth the risk of losing a potential sale.  If inventory is that low anyways, any move in ready home priced right should bring a few offers.

Ophelia Nicholson · Answer

Hey Cheryl,
  I'm in pretty much same market as your or same metro market anyway- I would list it right after the first of the year. New year new beginings new house- People are planning on getting tax refund soon and people will be looking at least that is my plan. I see many investors placing on the market prior to spring with success. 
 If there is low inventory and you have a quality product then you will get multiple offers- All regular sellers are waiting till spring why wait on the competition. 
If there is a shortage of houses on the market then it is safe to say its there is also a shortage of rehabbed properties so why not let yours be there for the people who are buying- With any luck you can have the house sold by spring and looking to buy another.

J Scott · Answer

Well, I think trying to time the market is ridiculous, especially given the current market trends.  While you have a bidding war to lose, you also could potentially lose a good bit of upside if the market drops between now and Spring.

If gambling and trying to time the market is something you want to try, I recommend you hold off until next winter after the election, hope that there is a major change in which parties are elected, and then take advantage of the influx of new politicians and their staffs to DC (who will be looking for places to live).

Of course, I believe that's a bad decision as well.

Greg P. · Answer

I agree with everyone about listing it.  If you bought it with cash it may not hurt as much but the sooner you list it, the sooner you'll be able to sell.

Ann Bellamy · Answer

I think Des N meant - at that point when you are ready to decide to list it, the rehab will be done.  he was projecting.

As for your decision, I agree with J Scott.  You have no idea, given the current economic and political upheaval, what the situation will be in Feb.  There could be another terrorist or economic disaster, and you've already experienced the unforseen w 9/11.  Given that experience, I would think the answer is clear

Account Closed · Answer

I would list it now.  I have sold houses in November thru January, there still are people buying at this part of the year.  I did have a house that was listed throughout the winter and did not sale.  When spring came back around I went up $10k on the price and then it sold.  Timing is important and you always want to be ready.

Greg P. · Answer

If you have a good product; and in line with the competition with pricing; then you will have no problem selling the product no matter if it's winter or summer.  Just get it out there if you are confident with the end result.  Good luck.

Cheryl C. · Answer

It's not "done".  I close the 15th and then have about a month for the rehab - which puts me just before Christmas.  I do agree with the advice to put it on, but think I'll wait until the first week of January.  The good news is that I just snagged another one yesterday (if it goes thru).

Should I hold my flip off the market until spring?

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